Can you collect unemployment with severance pay in Washington?

Yes, you can typically collect unemployment benefits even with severance pay in Washington state. The key is HOW the severance is structured. If it's a lump sum payment for past work, it usually doesn't affect your weekly benefit amount. However, if it's paid out weekly like regular wages, Washington ESD might consider it as ongoing income during those weeks.

I was in a similar situation last year. Got $6,500 severance as a lump sum and still received my full UI benefits. The important thing is being honest about it when you file your claim.

This is a common confusion point. The rule is that severance pay for PAST work doesn't count as wages for unemployment purposes. But if your employer is paying you in lieu of notice (like pay for future weeks), that DOES count as wages and would delay your benefits. You need to check your severance agreement to see which type you have.

If you're having trouble getting through to Washington ESD to clarify this, I found a service called Claimyr that helped me reach an actual agent. They have a system that calls the Washington ESD phone lines for you and connects you when they get through. Check out claimyr.com - there's even a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Saved me hours of calling.

ugh the severance thing is so confusing!! I'm getting mine paid out over 8 weeks so I think that means I have to wait? This is so stressful when you're already dealing with losing your job

Pro tip: When you file your weekly claims, you'll need to report any severance pay you received that week. Even if it's a lump sum from week 1, only report it in the week you actually received it. Don't spread it across multiple weeks.

The Washington ESD website actually has a decent FAQ about severance pay if you dig around. But honestly their phone system is such a nightmare that getting a real person to explain your specific situation is nearly impossible.

wait I thought ANY money from your employer would disqualify you? This is news to me

I work in HR and deal with this question a lot. The key distinction Washington ESD makes is whether the payment is for work already performed versus future work periods. Severance is typically for past work, so it doesn't delay benefits. But always be upfront about it when filing.

Just file your claim and be honest about the severance. Washington ESD will sort it out during adjudication. Better to file and have them tell you to wait than to wait and miss out on benefits you're entitled to.

For what it's worth, I had a similar situation and used that Claimyr service someone mentioned to get clarity from Washington ESD. The agent confirmed that my lump sum severance wouldn't affect my weekly benefit amount. Worth the peace of mind to talk to someone who actually knows the rules.

Been through this exact situation. Filed my claim the day after I got laid off, reported my severance honestly, and got approved for full benefits. Washington ESD is actually pretty clear about this once you talk to someone who knows what they're doing.

The whole severance thing is just another way the unemployment system is confusing. Like why can't they just have clear rules posted somewhere obvious?

Update from my experience: I filed with severance pay and got approved. The key is being honest and clear about what the payment was for. Washington ESD handled it without any issues during the adjudication process.

don't overthink it just file and see what happens. worst case they say no and you appeal or wait until the severance period ends

I used to work for Washington ESD and can confirm that lump sum severance payments typically don't affect unemployment benefits. The confusion comes from people mixing up severance with other types of separation pay. Just be accurate when you report it and you should be fine.

Bottom line: File your claim, report your severance accurately, and let Washington ESD make the determination. Most people with lump sum severance can collect benefits immediately. The system is designed to help unemployed workers, not punish them for getting severance.