Can you draw unemployment if you get a severance package from Washington ESD?
Just got laid off from my tech job and they're offering me a severance package worth about $8,000. I really need to file for unemployment benefits but I'm worried the severance will disqualify me or delay my claim. Does Washington ESD count severance as wages that would make me ineligible? The HR person wasn't clear about this and I can't get through on the phone to ask. Has anyone dealt with this situation before?
53 comments


Isabella Costa
Severance doesn't automatically disqualify you from unemployment in Washington, but the timing matters. If they're paying it as a lump sum vs. continuing your regular paychecks makes a difference. You should still file your claim right away.
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NeonNebula
•It's a lump sum payment. So I can file immediately even though I'm getting the severance?
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Isabella Costa
•Yes, file immediately. The lump sum shouldn't delay your eligibility date, but you'll need to report it when you file.
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Ravi Malhotra
I had this same situation last year. Got $5k severance and still qualified for unemployment. The key is being honest about it on your application.
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NeonNebula
•Did Washington ESD ask for documentation about the severance? I have the paperwork from HR.
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Ravi Malhotra
•They might during adjudication. Keep all your paperwork ready just in case.
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Freya Christensen
If you're having trouble reaching Washington ESD by phone, you might want to check out Claimyr at claimyr.com. They help people get through to agents faster. There's a demo video at https://youtu.be/7DieNd3C7zQ that shows how it works. Really helpful when you need to clarify these kinds of situations.
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NeonNebula
•Thanks! I'll look into that. The phone lines are impossible right now.
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Omar Farouk
•I used Claimyr last month when I had questions about my claim. Much better than trying to call repeatedly.
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Chloe Davis
SEVERANCE IS NOT THE SAME AS WAGES! Washington ESD knows the difference. Severance is compensation for job loss, not payment for work performed. You should be fine to collect unemployment.
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AstroAlpha
•This is correct. Severance packages are specifically designed to help people transition between jobs.
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NeonNebula
•That makes sense. I was worried they'd treat it like I was still employed.
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Diego Chavez
wait does this mean if I got a severance I should have filed for unemployment? I thought I had to wait until the money ran out
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Isabella Costa
•You should file as soon as you're unemployed, regardless of severance. The benefit year starts from when you file, not when your severance ends.
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Diego Chavez
•ugh I think I missed out on weeks of benefits then
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Freya Christensen
•You can still file now. Benefits are backdated to when you became unemployed in some cases.
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Anastasia Smirnova
Just be prepared for potential delays in processing. My claim went into adjudication when I reported severance, took about 3 weeks to resolve.
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NeonNebula
•Did they eventually approve your claim? I can't afford a long delay.
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Anastasia Smirnova
•Yes, approved with no issues. The adjudication was just to verify the severance details.
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Sean O'Brien
The Washington ESD website has info about this but it's buried in their FAQ section. Basically severance doesn't count as wages for unemployment purposes.
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NeonNebula
•I looked at their website but couldn't find clear information. Do you have a direct link?
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Sean O'Brien
•It's under the 'Eligibility' section, then 'Income and Benefits.' Really hard to navigate their site.
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Omar Farouk
My company tried to tell me I couldn't file for unemployment because of severance. Total BS. Filed anyway and got approved.
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NeonNebula
•That's exactly what I was worried about! Glad you pushed back on that.
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Isabella Costa
•Companies often don't understand unemployment law. Always file if you're eligible.
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Zara Shah
Question - does the amount of severance matter? Like if it's a huge amount vs. small amount?
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Isabella Costa
•The amount doesn't affect your eligibility for unemployment benefits. A $1,000 severance and a $50,000 severance are treated the same way.
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Zara Shah
•Good to know. I was worried about that too.
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Luca Bianchi
Make sure you report the severance correctly on your weekly claims. Don't try to hide it or you'll get in trouble later.
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NeonNebula
•How do I report it? Is there a specific section on the weekly claim form?
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Luca Bianchi
•There's a question about other income received during the week. Report it the week you actually receive the payment.
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GalacticGuardian
i got severance and unemployment at the same time no problem. washington esd didn't even question it
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NeonNebula
•That's reassuring. How long ago was this?
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GalacticGuardian
•like 6 months ago. pretty straightforward process
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Freya Christensen
If you do run into issues with Washington ESD during the process, definitely consider using Claimyr to get through to an agent. Sometimes you need to speak to someone directly to clarify these severance situations.
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NeonNebula
•I'm definitely going to try that if my claim gets complicated. Thanks for the recommendation.
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Nia Harris
Pro tip: File your claim online late at night or early morning. The system is less busy and you're more likely to get through without errors.
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NeonNebula
•Good advice! I'll try filing tonight after work.
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Mateo Gonzalez
•I filed at 6 AM and had no issues with the website being slow.
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Aisha Ali
Don't overthink this. Severance and unemployment serve different purposes. You lost your job, you're eligible for benefits. Period.
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NeonNebula
•You're right. I was making it more complicated than it needed to be.
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Ethan Moore
My adjudication took forever because I didn't report my severance initially. Be upfront about everything from the start.
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NeonNebula
•How long did your adjudication take? I really need the benefits to start soon.
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Ethan Moore
•About 5 weeks, but that was because I had to correct my initial filing. Should be faster if you're honest from the beginning.
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Yuki Nakamura
The unemployment system is already confusing enough without companies giving bad advice about severance. Glad you asked here first!
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NeonNebula
•Yeah, this forum has been super helpful. Way better than trying to decode the Washington ESD website.
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StarSurfer
One thing to watch out for - if your severance includes continuation of health benefits, that might affect other eligibility. But shouldn't impact unemployment.
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NeonNebula
•My severance is just cash, no health benefits continuation. Should be straightforward then.
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Omar Farouk
UPDATE: For anyone else reading this, I used Claimyr last week to get through to Washington ESD about a different issue. Worked great and saved me hours of calling.
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NeonNebula
•Thanks for the update! I'm going to file my claim tonight and if I need help, I'll definitely try Claimyr.
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Carmen Reyes
Bottom line - file your unemployment claim as soon as you're laid off, regardless of severance. The worst they can do is say no, and based on everyone's experiences here, they probably won't.
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NeonNebula
•That's exactly what I needed to hear. Filing tonight. Thanks everyone for all the help!
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Isabella Costa
•Good luck with your claim! Feel free to post updates if you run into any issues.
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