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Mason Davis

Can you collect unemployment if you get a severance package - Washington ESD rules?

I just got laid off from my tech job after 6 years and they're offering me a severance package worth about 8 weeks of pay. I'm really confused about whether I can still file for unemployment benefits with Washington ESD if I accept this severance. Some people are telling me I have to wait until the severance runs out, others say I can file right away. Does anyone know the actual rules? I need to decide by Friday whether to accept the package or not.

You can absolutely file for unemployment even with a severance package in Washington state. The key thing is HOW the severance is structured. If it's a lump sum with no strings attached, you can file immediately. If it's being paid out weekly like regular wages, then those weeks might be considered 'wages in lieu of notice' and could delay your benefits.

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It's being paid as a lump sum but I have to sign a non-compete. Does that change anything?

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The non-compete shouldn't affect your unemployment eligibility as long as you're able and available for work in your field or willing to seek work in other areas.

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I went through this exact situation last year! Washington ESD told me that severance payments don't automatically disqualify you from benefits. What matters is whether you're still considered 'employed' during the severance period. If your employment officially ended and the severance is just a goodbye payment, you should be good to file.

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Did you have any issues when you filed? I'm worried they'll deny my claim if I mention the severance.

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Be honest about it on your application. I reported mine and had no problems. Trying to hide it could cause bigger issues later.

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This is good advice. Washington ESD will find out about the severance anyway through wage reports, so transparency is always better.

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Actually, I think you should look into using Claimyr to get through to Washington ESD directly about this. I used claimyr.com a few months ago when I had questions about my claim status and it was amazing - got connected to an actual person in like 10 minutes instead of waiting on hold forever. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows exactly how it works. For something this important, I'd want to hear it straight from Washington ESD.

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I've never heard of Claimyr before. Is it legit or one of those scam services?

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Totally legit! They just help you get through to the unemployment office faster. I was skeptical too but it really worked. Way better than hitting redial 500 times.

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I can vouch for Claimyr too. Used them when my claim got stuck in adjudication and they helped me get answers quickly.

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wait so ur saying i can get unemployment AND keep my severance??? that seems like double dipping to me lol

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It's not double dipping at all. Severance is compensation for past work, unemployment is support while you look for new work. Completely different purposes.

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oh ok that makes sense when u put it that way

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The Washington ESD handbook is pretty clear on this - severance pay that's not considered wages won't affect your weekly benefit amount. However, if the severance includes payment for accrued vacation time or sick leave, those portions might be treated differently. You'll want to read the fine print of your severance agreement.

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Good point about vacation pay. I think mine includes 2 weeks of unused PTO. Should I ask HR to separate that out?

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That could help make things clearer for Washington ESD, but either way you should report all components when you file your claim.

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I'm dealing with something similar right now except my company is making the severance contingent on me not filing for unemployment. Is that even legal???

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That sounds like it could be problematic. Companies can't typically prevent you from accessing benefits you're entitled to. You might want to check with an employment attorney.

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Yeah I thought it seemed fishy. Thanks for confirming my suspicions.

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Definitely sketchy. Your right to unemployment benefits can't be waived as a condition of severance.

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One thing to keep in mind - even if you can file immediately, your first week is usually a waiting week anyway with Washington ESD. So if your severance covers you for a few weeks, the timing might work out perfectly.

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I didn't know about the waiting week. So I wouldn't get paid for the first week regardless?

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Actually, I think Washington eliminated the waiting week a few years ago. But double-check that when you file.

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Correct, Washington ESD removed the waiting week in 2023. You can receive benefits starting with your first eligible week.

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THE WHOLE SYSTEM IS RIGGED ANYWAY! They'll find some excuse to deny you or make you wait months for a decision. I've been fighting an adjudication issue for 12 weeks now and still no answer from Washington ESD!

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Have you tried Claimyr for your adjudication issue? That's exactly the kind of situation where getting an actual person on the phone makes all the difference.

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Never heard of it but at this point I'll try anything. This is ridiculous.

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Just wanted to add - make sure you understand if there are any job search requirements tied to your severance. Sometimes companies include clauses about actively looking for work during the severance period, which could actually help you meet Washington ESD's job search requirements.

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Interesting point! I'll check my paperwork for anything like that.

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Yeah, it's not common but I've seen it before. Could work in your favor for the work search documentation.

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Does anyone know if the amount of severance affects the unemployment benefit amount? Like if I get a huge severance, will they reduce my weekly benefits?

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In Washington, the severance amount itself doesn't reduce your weekly benefit calculation. Your benefits are based on your earnings history during the base period, not on severance received.

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That's a relief! I was worried a generous severance might hurt me somehow.

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I'm confused about the timeline here. If I accept severance and file for unemployment the same week, when would benefits actually start?

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Benefits would start from the date your employment actually ended, assuming you meet all other eligibility requirements. The severance payment date is separate from your employment end date.

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Got it, so it's based on when I'm actually unemployed, not when I receive the money.

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This thread is super helpful! I'm in a similar boat but my severance includes COBRA payments for 6 months. Does that complicate things with Washington ESD?

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COBRA payments as part of severance shouldn't affect your unemployment eligibility. That's just health insurance continuation, not wages.

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Perfect, thanks for clarifying that!

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Quick question - do I have to report the severance amount on my weekly claims or just when I initially file?

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You should report it when you initially file. For weekly claims, you typically only report income earned during that specific week. Since severance is usually a one-time payment, it wouldn't appear on weekly claims.

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Makes sense, thanks!

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My company HR is telling me I can't file for unemployment if I take the severance. After reading this thread, I think they're wrong?

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HR departments often don't fully understand unemployment law. They might be thinking of old rules or rules from other states. In Washington, severance generally doesn't disqualify you from benefits.

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That's what I suspected. I think I need to do my own research instead of relying on HR.

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Definitely do your own research. HR protects the company, not necessarily your interests.

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Is there a maximum severance amount that would affect unemployment? Like if someone got a year's worth of pay?

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The amount doesn't matter as much as the structure. Even a large lump sum severance shouldn't disqualify you if your employment has actually ended and you're available for work.

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Good to know! I was worried there might be some threshold.

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Can you file for unemployment before your last day of work if you know you're getting severance?

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No, you can only file after your employment has actually ended. Filing before your last day would be considered fraud.

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OK good thing I asked! I'll wait until after my official end date.

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This is all really confusing. I wish Washington ESD would just have a clear FAQ about severance and unemployment. I've been googling for hours and getting conflicting information.

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That's exactly why I recommend Claimyr for getting definitive answers. Instead of guessing, you can actually talk to someone at Washington ESD who knows the current rules.

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I might have to try that. This is too important to mess up.

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Thanks everyone for all the helpful responses! I think I'm going to accept the severance and file for unemployment. Based on what I've read here, it seems like I should be able to do both. I'll make sure to be completely honest about the severance when I file my claim.

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Smart decision! Honesty is always the best policy with unemployment claims. Good luck with your job search!

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You made the right choice. That severance will give you a nice cushion while you look for your next opportunity.

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Thanks to everyone who helped! I'm feeling much more confident about my decision now.

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One last thing - does anyone know if severance affects the total number of weeks you can collect unemployment?

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No, severance doesn't reduce your total benefit duration. You still get the same number of weeks of eligibility based on your work history and the current program limits.

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Perfect! That was my last concern. Thanks for all the help everyone!

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