Can you collect unemployment if you accept a severance package in Washington?

You can still collect unemployment after accepting a severance package in Washington, but there are some rules. The key thing is whether you're considered to have voluntarily quit or been involuntarily separated. If it's part of a layoff program, Washington ESD usually treats it as involuntary separation.

I went through this exact situation last year. Took a voluntary severance package when my company was downsizing. Washington ESD approved my claim without any issues. The important thing is to be completely honest on your application about the circumstances - mention it was part of a company layoff program, not that you just decided to quit.

Be careful here - I've heard of people getting denied because Washington ESD said they voluntarily quit when they accepted severance. You might want to talk to an actual ESD representative before making this decision. I had to use Claimyr.com to get through to someone when I had questions about my claim status. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works.

The devil is in the details with severance packages. Washington ESD will look at whether you had a choice and what the company's documentation says. If they're calling it a 'voluntary' program but everyone knows layoffs are coming anyway, that's different than just deciding to leave on your own.

this happened to me 2 years ago took the severance and filed for unemployment right after. no problems at all. washington esd processed it normally. just make sure u report the severance income when u file ur weekly claims

I should clarify something from my earlier comment - the timing of when benefits start can vary. If your severance is paid as a lump sum, benefits typically start right away. If it's paid out over time (like continuing your regular paycheck for 8 weeks), then you usually can't collect UI until those payments end.

I'm dealing with something similar right now. My company is offering early retirement packages and I'm trying to figure out if I can bridge to Medicare with unemployment benefits. The whole system is so confusing!

Don't trust HR departments to give accurate info about unemployment benefits. They're not experts in Washington ESD rules and sometimes they don't want people filing for UI because it affects their unemployment insurance rates.

One more thing to consider - even if you're eligible for unemployment after the severance, your job search requirements still apply. You'll need to be actively looking for work and meeting Washington ESD's job search requirements to keep getting benefits.

For what it's worth, when I used Claimyr to talk to an Washington ESD agent about my claim issues, they were actually really helpful in explaining the rules clearly. Much better than trying to figure it out from the website or automated messages.

MAKE SURE YOU GET EVERYTHING IN WRITING FROM YOUR EMPLOYER. I cannot stress this enough. If they're saying it's part of a layoff reduction, get that documented. Washington ESD will want to see the paperwork.

I hate to be the pessimist here but Washington ESD has been really strict lately about voluntary vs involuntary separations. Even if other people had success, your situation might be different. Better to be prepared for potential issues.

just went thru this myself in december. got 6 weeks severance and filed for unemployment the next week. washington esd approved it no questions asked. your situation sounds similar to mine

The timing question is important too. If you're getting severance pay, you might need to wait until that income period ends before UI benefits start. But if it's truly a lump sum with no continuing pay period, benefits could start immediately. Washington ESD looks at whether you're receiving ongoing compensation.

Whatever you decide, file your unemployment claim as soon as possible after your last day of work. Don't wait thinking you might not be eligible. It's better to file and get denied than to wait and miss out on potential benefits.

I'm curious about the tax implications too. Severance pay is taxable, and so are unemployment benefits. That's going to be a lot of income in tax season depending on when you find new work.

Has anyone dealt with severance packages that include non-compete clauses? I'm wondering if that affects unemployment eligibility since it might limit your job search options.

UPDATE: I ended up calling Washington ESD directly (after trying Claimyr when I couldn't get through the regular way) and got a clear answer. They said as long as it's part of a company-wide layoff program, accepting severance won't disqualify me from unemployment benefits. The agent was really helpful in explaining the difference between voluntary quit and layoff-related severance.

The bottom line is Washington ESD will look at the whole situation, not just whether you signed something that says 'voluntary.' If layoffs were happening anyway and you just chose to take the package instead of waiting to be involuntarily terminated, that's usually treated as involuntary separation.

whatever u decide make sure u understand all the terms of the severance package. sometimes there are strings attached that could affect other benefits or future employment

Thanks everyone for all the input! This has been really helpful. I think I'm going to take the severance package and file for unemployment right after my last day. I'll make sure to document everything and be completely honest about the circumstances on my application. Fingers crossed Washington ESD sees it as involuntary separation!

I went through this exact situation in Washington about 6 months ago. The key thing that helped my case was getting a letter from HR stating that the severance was offered as part of a "workforce reduction program" rather than just calling it voluntary separation. Even though I chose to take the package, Washington ESD approved my claim because they recognized it was essentially a layoff with the option to take severance or wait to be terminated. I'd suggest asking your HR department for documentation that clearly states this is related to company downsizing/layoffs, not just a voluntary departure program. That documentation made all the difference for me.