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Noland Curtis

Can you get Washington ESD unemployment if you receive a severance package?

My company just laid me off after 8 years and I'm getting a severance package of about $12,000 paid out over 6 weeks. I'm wondering if I can still file for unemployment benefits with Washington ESD while receiving this severance? I've heard conflicting info - some people say severance counts as wages and delays your claim, others say it doesn't matter. Has anyone dealt with this situation before? I really need to know because I have a mortgage and other bills to pay.

Yes, you can typically file for unemployment even with severance, but it depends on how Washington ESD classifies your specific severance arrangement. The key question is whether it's considered 'wages in lieu of notice' or a true severance payment. If it's wages in lieu of notice, it might delay your benefits until that period ends.

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How do I know which type it is? My HR just said it was 'severance pay' but didn't get more specific than that.

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Check your severance agreement - it should specify. If it says something like 'payment in lieu of 6 weeks notice' then it's probably wages. If it's just called a severance benefit, it's usually treated differently.

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I went through this exact situation last year. Washington ESD will ask you about any severance when you file your initial claim. The important thing is to be completely honest about it. In my case, I had a 4-week severance and they told me I could file immediately but my benefits wouldn't start until after the severance period ended.

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Did you have to report the severance on your weekly claims too, or just the initial application?

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I had to report it on the weekly claims during the weeks I received it. Washington ESD has specific questions about severance payments on the weekly claim form.

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This is really helpful - I'm in a similar boat with a 8-week severance starting next month.

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You should definitely file right away even if you think the severance might delay things. There's often a waiting period anyway, and filing starts your claim date. I made the mistake of waiting and it just delayed everything even more.

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Good point about filing right away. I was thinking of waiting until the severance ended but that probably doesn't make sense.

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Absolutely file immediately. The sooner you get into their system, the better. Plus Washington ESD can be really slow with processing claims.

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Just went through this nightmare trying to reach Washington ESD about my severance situation. Spent hours on hold only to get disconnected. Finally used this service called Claimyr (claimyr.com) that actually got me through to a real person in like 15 minutes. They have a video demo at https://youtu.be/7DieNd3C7zQ showing how it works. Game changer for getting answers about complicated stuff like severance.

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Interesting, never heard of that. Did they charge you anything for it?

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They do charge a fee but honestly it was worth it to actually talk to someone who could give me definitive answers about my severance situation instead of guessing.

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I'm so tired of the Washington ESD phone system. Might have to check this out too.

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The severance rules are pretty straightforward once you understand them. Washington ESD considers most severance as 'dismissal pay' which doesn't prevent you from filing, but you have to report it and it might affect your benefit amount during those weeks. The tricky part is getting through to someone to clarify your specific situation.

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So it affects the benefit amount but doesn't completely disqualify you?

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Right, it's usually a reduction rather than a complete disqualification. But every case is different depending on the severance terms.

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ugh why does everything with unemployment have to be so complicated?? I got a severance too and I'm so confused about what to do. The Washington ESD website doesn't really explain it clearly at all.

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I know right? I've been reading their website for hours and still don't have a clear answer.

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The website is pretty useless for specific situations like this. You really need to talk to someone.

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One thing to keep in mind - if your severance is being paid out over multiple weeks, Washington ESD will want to know the exact dates and amounts for each payment. Keep good records of when you receive each payment because you'll need to report it accurately on your weekly claims.

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Good tip about keeping records. Mine is being paid biweekly so I'll make sure to track the exact dates and amounts.

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Yes definitely keep records! I got in trouble once for not reporting a payment correctly and had to deal with an overpayment notice.

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I think people are overcomplicating this. Just file for unemployment and answer their questions honestly. If they say you can't get benefits because of the severance, then you can't. If they say you can, then you can. Simple as that.

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I guess you're right, but I'm just worried about doing something wrong and messing up my claim.

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It's not that simple though. The rules around severance are actually pretty complex and Washington ESD representatives sometimes give different answers.

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From what I understand, lump sum severance is treated differently than severance paid over time. If you get it all at once, it might not affect your weekly benefits as much as if it's spread out over several weeks. But don't quote me on that - definitely verify with Washington ESD.

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Mine is spread out over 6 weeks, so I guess that means it will affect my weekly benefits during those weeks?

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Probably, but the exact impact depends on the amount and how Washington ESD calculates it against your weekly benefit amount.

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Whatever you do, don't lie about the severance. Washington ESD will find out eventually and then you'll have to pay back any benefits plus penalties. I've seen it happen to people.

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Definitely planning to be completely honest about it. Not worth the risk of getting in trouble later.

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Smart approach. They cross-check with employers and tax records so lying is basically impossible anyway.

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I had a similar situation but with vacation payout instead of severance. Washington ESD treated it like wages and it delayed my benefits for 3 weeks. Severance might be different but just be prepared for potential delays.

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Did you file right away or wait until after the vacation payout period?

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I filed right away and I'm glad I did. Even though benefits were delayed, getting the claim started early was important.

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The Washington ESD handbook has some info about severance but it's pretty vague. Your best bet is calling them directly, though good luck getting through. I've been trying for weeks about my own claim issue.

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Someone mentioned that Claimyr service earlier - might be worth trying if you can't get through the regular way.

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Yeah I saw that. Might have to give it a shot at this point.

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Just want to add that if you're getting COBRA continuation through your severance package, that might also affect things. Make sure to mention all aspects of your severance agreement when you file.

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Good point - my severance does include COBRA coverage for 3 months. I'll make sure to mention that too.

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Been through this twice now with different companies. First time I got confused and didn't file right away - big mistake. Second time I filed immediately and just reported the severance honestly on my weekly claims. Much smoother process the second time around.

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Thanks for sharing your experience. It sounds like filing immediately is the way to go regardless of the severance situation.

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Exactly. Let Washington ESD sort out the details - your job is just to be honest and file promptly.

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One more thing - make sure you understand whether your severance includes payment for unused PTO/vacation time. That's usually treated as wages and has different rules than true severance pay.

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Mine is just severance, no vacation payout since I used all my vacation already. Good to know the distinction though.

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The PTO payout rules are definitely different. I had to deal with both severance and vacation payout and it was confusing.

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Bottom line: file your claim ASAP, be completely honest about the severance, and let Washington ESD tell you how it affects your benefits. Don't try to guess or delay filing - that just makes everything worse.

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This seems like the consensus from everyone. I'm going to file my claim tomorrow and just be upfront about everything.

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That's definitely the right approach. Good luck with your claim!

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