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

Severance packages don't automatically disqualify you from unemployment in Washington, but the timing and structure matter a lot. If it's a lump sum payment, it typically won't affect your weekly benefits. If it's paid out over time like regular paychecks, Washington ESD might consider it wages and delay your benefits until after the severance period ends.

I went through this exact situation last year. Had a 10-week severance package and was still able to collect UI benefits immediately. The key is being honest about everything when you file your claim with Washington ESD.

You should definitely apply right away regardless of the severance. I tried calling Washington ESD about this same question and spent hours on hold without getting through. If you're having trouble reaching them, I found this service called Claimyr (claimyr.com) that helped me get connected to an actual agent. They have a video demo showing how it works: https://youtu.be/7DieNd3C7zQ

WAIT - this is so confusing! I thought ANY money from your employer disqualifies you from unemployment. My friend got severance and couldn't collect benefits for months. Are the rules different now??

The Washington ESD handbook specifically addresses this. Lump sum severance payments are generally not considered wages for unemployment purposes. However, if your severance includes continuation of regular pay periods, those would be treated as wages and could delay benefits.

honestly this whole thing is a mess... i got severance 2 years ago and filed for unemployment anyway. never had any problems but who knows if they'll crack down now

Just to follow up on my earlier comment - I actually used Claimyr specifically to ask about severance and unemployment eligibility. The Washington ESD agent I spoke with was really helpful in explaining how they evaluate different types of severance packages. Worth the peace of mind if you can't get through on your own.

Update: I called Washington ESD this morning and actually got through after about 45 minutes on hold! The agent confirmed that my lump sum severance won't delay my unemployment benefits. She said to report it when filing but it shouldn't affect my weekly benefit amount or eligibility.

My brother went through this exact thing when Boeing had layoffs. Severance didn't impact his UI at all, but he had to provide documentation during the adjudication process.

For anyone reading this later: Washington ESD treats severance differently than vacation payout or bonuses. Vacation pay is considered wages and can delay benefits, but true severance (compensation for job loss) typically doesn't affect UI eligibility timing.

The unemployment office is IMPOSSIBLE to reach by phone. I've been trying for weeks about my own severance question. Might have to try that Claimyr thing someone mentioned earlier.

Just want to echo what others said - be completely honest about your severance when filing. Washington ESD has access to wage records and will find out anyway. Better to report it upfront than deal with complications later.

I work in HR and deal with this question all the time. Washington state is actually more generous than some other states when it comes to severance and unemployment. The key is understanding the difference between severance compensation and continuing wages.

Filed my claim yesterday with severance info included. The online application was pretty straightforward about it - just asked for the amount and payment date. No red flags so far.

This thread has been super helpful! I was worried my severance would disqualify me completely. Sounds like as long as I'm honest about it, I should be fine.

One more thing to consider - if you have a non-compete clause in your severance agreement, that could potentially affect your job search requirements for unemployment. Worth mentioning to Washington ESD if applicable.

Thanks everyone for all the helpful information! This gave me the confidence to move forward with filing my claim. Will update if anything unexpected comes up during the process.

Final thought for anyone still worried about reaching Washington ESD with questions - I ended up using Claimyr three different times during my unemployment claim process. Really helpful for getting quick answers when the phone lines are jammed. Worth checking out their demo video if you're on the fence: https://youtu.be/7DieNd3C7zQ

This has been one of the most helpful unemployment discussions I've seen. Really appreciate everyone sharing their experiences with severance and UI benefits in Washington state.