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McKenzie Shade

Can you get Washington ESD unemployment if you sign a separation agreement?

My company offered me a separation agreement with severance pay after they decided to eliminate my position. The agreement includes a non-compete clause and some other standard legal language. I'm wondering if signing this will affect my ability to file for unemployment benefits with Washington ESD? The HR person wasn't clear about this and I don't want to mess up my eligibility. Has anyone been through this situation before?

Generally speaking, signing a separation agreement shouldn't disqualify you from unemployment benefits as long as you didn't voluntarily quit. If your position was eliminated, that's considered an involuntary separation. The key is whether you quit or were laid off.

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That's what I was hoping to hear. They said it was due to restructuring, so I think I should be okay.

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Just make sure you keep all the paperwork from the separation agreement when you file your claim.

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You should be fine for unemployment benefits. Washington ESD looks at the reason for separation, not whether you signed paperwork. However, the severance pay might affect when you can start collecting benefits - there could be a waiting period.

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Oh I didn't think about the severance affecting the timing. How long of a delay are we talking about?

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It depends on the amount and how Washington ESD calculates it against your weekly benefit amount. Usually it's week-for-week based on your usual pay.

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I went through something similar last year. Had trouble getting through to Washington ESD to ask about my separation agreement and severance. Kept getting busy signals and hung up on after waiting for hours. Finally used claimyr.com to get connected to an actual agent who explained everything. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. Made the whole process way less stressful.

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That's interesting, I'll check it out. The Washington ESD phone system has been impossible to get through to.

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Never heard of that service before but might be worth trying if the regular phone lines aren't working.

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wait so severance pay delays your unemployment? that doesn't seem fair if you were laid off through no fault of your own

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It's because severance is considered wages in lieu of notice. The idea is you're still being paid by your employer during that period.

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i guess that makes sense but still annoying when you need the money

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The separation agreement itself won't hurt your unemployment eligibility, but read it carefully. Some have clauses about not filing for unemployment or not speaking negatively about the company. Those clauses are usually unenforceable but worth knowing about.

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I'll definitely read through it more carefully. I was so focused on the severance amount that I didn't pay attention to those details.

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Good point. I've seen some employers try to include language about unemployment but it rarely holds up if challenged.

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Just file your claim as soon as you're separated. Even if there's a severance delay, you want to get the process started. Washington ESD can be slow with processing sometimes.

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Good advice. I'll file right away even if I have to wait for payments to start.

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Exactly right. The sooner you file, the sooner your benefit year starts, even if payments are delayed.

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I signed a separation agreement two years ago and had no issues with unemployment. The only thing that tripped me up was they asked for documentation about why I was separated during the application process.

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What kind of documentation did they want? Just the separation agreement?

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They wanted the separation agreement and a letter from HR confirming it was a layoff, not a resignation. Took a few weeks to get everything sorted.

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Be careful about non-compete clauses affecting your job search requirements. Washington ESD requires you to actively look for work, and if the non-compete limits where you can apply, it might complicate things.

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That's a really good point I hadn't considered. The non-compete is pretty broad so it might limit my options.

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Most non-competes are hard to enforce anyway, especially for unemployment purposes. Just document your job search efforts broadly.

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Another thing about using Claimyr - they helped me understand exactly how my severance would affect my claim timing. The Washington ESD agent explained that my 8 weeks of severance meant an 8 week delay, but I could still file immediately to get the process started.

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That's really helpful context. I think my severance is about 6 weeks worth, so I should expect a similar delay.

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How much does that Claimyr service cost? Seems like it could be worth it to avoid the phone hassles.

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Check their website for details, but for me it was worth it just to get clear answers instead of guessing.

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I've been trying to reach Washington ESD for weeks about my own separation issue. The phone system is completely broken - you wait on hold for hours just to get disconnected. It's ridiculous that we have to use third party services just to talk to them!

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RIGHT?? the system is so messed up, you shouldn't have to pay extra just to get basic information

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I understand the frustration, but sometimes you have to do what works. The phone system has been overwhelmed for years.

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One more thing - make sure you understand how your severance is paid out. If it's a lump sum vs weekly payments, it might affect the unemployment timing differently. Washington ESD has specific rules about this.

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Mine is a lump sum payment. Does that change anything compared to weekly severance?

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With lump sum, Washington ESD usually calculates it as if it were weekly pay over the period it's meant to cover. So if you get 6 weeks worth in one payment, it still creates a 6 week delay.

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Document everything! Keep copies of the separation agreement, any emails about the layoff, and your final paystub. Washington ESD might ask for proof later during adjudication.

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Good reminder. I'll make copies of everything before I file.

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Smart advice. Better to have too much documentation than not enough when dealing with Washington ESD.

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btw if your claim goes into adjudication because of the separation agreement, don't panic. it's pretty routine and usually gets resolved in a few weeks once they review the documentation

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What exactly is adjudication? I keep seeing that term but don't really understand it.

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Adjudication is when Washington ESD reviews your claim because there's a question about eligibility. They look at the facts and make a determination.

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The bottom line is signing a separation agreement for a layoff shouldn't hurt your unemployment eligibility. The bigger issue is usually the severance timing and making sure you have good documentation of why you were separated.

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Thanks everyone for all the helpful advice. I feel much more confident about moving forward now.

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You're welcome! Just remember to file as soon as possible even if payments will be delayed due to severance.

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I had a similar situation with a separation agreement and WARN notice. Washington ESD was actually pretty understanding once I got through to explain the situation. The hard part was just getting someone on the phone to talk to.

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That's encouraging to hear. I don't think we got a WARN notice since it was just a few positions eliminated.

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Yeah WARN is only for larger layoffs. But the principle is the same - involuntary separation should qualify you for benefits.

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Just wanted to add that the Claimyr service was really helpful for understanding the nuances of separation agreements and unemployment. The Washington ESD agent I spoke with through their system was very knowledgeable about how different types of severance packages affect benefit timing.

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I think I'm going to try that if I run into any issues with my claim. The regular phone system sounds like a nightmare.

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Honestly anything that helps you actually talk to someone at Washington ESD is probably worth it. I've wasted so many hours on hold.

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Make sure you read every page of that separation agreement. I missed a clause about returning company property and it delayed my final paycheck, which then affected my unemployment claim start date.

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Good point. I need to return my laptop and badge next week. I'll make sure that's all taken care of before filing.

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Smart thinking. You want everything clean and documented before you start the unemployment process.

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The non-compete thing is interesting. I wonder if Washington ESD would consider that as limiting your ability to search for work in your field. Might be worth asking about during your initial claim interview.

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That's a good question. I should probably bring that up when I file, especially since the non-compete covers most of my industry experience.

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I think as long as you're making good faith efforts to search for work, even with limitations, you should be okay. Just document everything.

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One last tip - if you do end up needing to appeal anything related to your separation agreement and unemployment eligibility, don't wait. The appeal deadlines are pretty strict with Washington ESD.

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Hopefully it won't come to that, but good to know. How long do you usually have to appeal?

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Usually 30 days from the date of the determination letter. Don't miss that deadline if you need to appeal.

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