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Mateo Martinez

Can you get unemployment if you get a severance package - Washington ESD eligibility question

My company just laid me off and I'm getting a severance package worth about $8,000 spread over 8 weeks. I'm confused about whether I can still file for unemployment benefits with Washington ESD while receiving this money. The HR person wasn't clear and said I should check with the state. Has anyone dealt with this situation before? I need to know if I should file my claim right away or wait until the severance runs out.

Yes, you can typically file for unemployment even with a severance package, but Washington ESD will usually delay your benefits until the severance period ends. The key is whether it's considered 'wages in lieu of notice' or just a lump sum payment. You should file your claim immediately though - don't wait!

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Thanks! So I should file now even though I won't get paid right away? I don't want to mess up my claim by filing too early.

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Exactly - file now. Your benefit year starts from when you file, not when payments begin. If you wait, you could lose weeks of potential benefits later.

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I went through this exact situation last year. Got 6 weeks severance and Washington ESD made me wait until it was finished before I could collect UI. They said it was 'wages in lieu of notice' so it counted as employment. But definitely file your claim immediately - the waiting period doesn't affect your filing date.

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Did you have to report the severance on your weekly claims during those 6 weeks?

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Yes, I had to report it each week even though I wasn't getting UI payments. Washington ESD tracks everything and you don't want gaps in your claim.

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This is so confusing. Why make us file weekly claims if they're not paying us anything during severance?

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I had trouble getting through to Washington ESD when I had questions about my severance situation. Kept getting busy signals for weeks. Finally used this service called Claimyr (claimyr.com) that helped me get connected to an actual person at Washington ESD. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. The agent was able to explain exactly how my severance would affect my claim timing.

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How much did that cost? I'm already stressed about money with the layoff.

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It was worth it to get actual answers instead of guessing. Much better than spending hours on hold or getting disconnected.

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Never heard of this service but honestly anything beats trying to call Washington ESD directly. Their phone system is terrible.

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wait so if I get severance I can't get unemployment at all? that doesn't seem fair

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No, you can still get unemployment - it's just delayed until the severance period ends. You're not losing your benefits, just the timing changes.

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oh ok that makes more sense. so its like the severance replaces unemployment for those weeks?

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Exactly right. Washington ESD sees it as you're still being 'paid' by your employer during the severance period.

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The Washington ESD website has information about this but it's buried in their policy manual. Basically, if your severance is structured as continued salary payments, it's treated as wages. If it's a lump sum with no connection to specific weeks, it might not delay your benefits. The devil is in the details of how your employer structured it.

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Mine is structured as 8 weekly payments, so sounds like I'll have to wait. At least I know now.

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Yeah, weekly payments almost always count as wages in lieu of notice. But still file immediately - that's the most important thing.

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I'm dealing with this right now too. Got laid off three weeks ago with a 4-week severance. Filed my claim right away but Washington ESD said I have to wait. It's frustrating because I still have to do the weekly claims and job search requirements even though I'm not getting paid.

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So you still have to look for jobs during the severance period? That seems like a lot of work for no payment.

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Yeah, you have to meet all the requirements or risk disqualification later. It's annoying but better than losing benefits.

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The job search requirement is so stupid when you're getting severance. Like let me enjoy my last few weeks of income before I stress about finding work.

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Mei Liu

Pro tip: Make sure your employer isn't calling it 'vacation payout' or something else that might be treated differently. I've seen people get surprised when Washington ESD treats different types of separation pay in unexpected ways.

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Good point. My paperwork says 'severance pay' but I should double-check if there are other terms used.

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Mei Liu

Yeah, the exact wording matters. Vacation payout is usually different from severance in terms of how Washington ESD handles it.

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Been through this dance before. The key thing is that your benefit year starts when you file, not when payments begin. So even if you wait 8 weeks for severance to end, you can still collect for the remaining weeks of your benefit year. Don't let the severance delay make you think you're losing anything long-term.

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That's reassuring. I was worried I'd lose weeks of benefits if I had to wait.

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Nope, the benefit year is a full year from when you file. The severance just shifts the timing, doesn't reduce the total.

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Washington ESD is so backed up right now. When I called to ask about my severance situation, I was on hold for 3 hours before giving up. Finally got through using that Claimyr service someone mentioned earlier. Saved me so much time and frustration.

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Seems like a lot of people are having success with that service. Might be worth trying if I can't get through on my own.

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Yeah I used Claimyr too when I had adjudication issues. Way better than the endless hold times.

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Just want to add - make sure you're honest about the severance on your weekly claims. Washington ESD will find out eventually and if you don't report it properly, you could face overpayment issues later. Better to be delayed than to deal with paying money back.

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Definitely planning to report everything accurately. Don't want to deal with overpayment problems on top of everything else.

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Smart approach. I've seen people get hit with big overpayment bills because they didn't understand how to report severance properly.

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the whole severance thing is confusing but at least Washington ESD lets you file right away. some states make you wait until severance is completely done before you can even file a claim

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Yeah, I'm grateful for that. At least I can get the claim started and not lose time on the back end.

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exactly. the waiting period for payments sucks but at least your benefit year clock starts ticking

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I was in a similar situation and the Washington ESD agent I talked to said it depends on whether the severance is 'allocable' to specific weeks. If your employer is paying you for specific weeks (like 8 weeks of continued salary), it delays benefits. If it's just a lump sum goodbye payment, it might not.

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Mine is definitely allocable to specific weeks - they're paying me my regular salary for 8 weeks. So I'll be waiting.

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Yeah, that's pretty clearly wages in lieu of notice. But hey, at least you have 8 weeks to job search without the pressure of needing immediate income.

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That's a good way to look at it. Use the severance time to really focus on finding something good instead of just taking anything.

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Anyone know if you can collect unemployment after severance ends even if you haven't found a job yet? Like if I'm still unemployed after my 8 weeks, can I start collecting then?

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Yes, absolutely. As long as you filed your claim and met all the requirements during the severance period, your benefits should start once the severance ends.

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Good to know. At least there's some safety net after the severance runs out.

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The Washington ESD handbook explains this pretty clearly if you can find it on their website. Severance pay is treated as wages if it's payment in lieu of notice, but not if it's just a goodwill gesture. Most severance packages are the first type, so expect to wait.

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I'll try to find that handbook. Sounds like it might have more details about how they make these determinations.

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Yeah, it's buried in their policy section but has good examples of different scenarios.

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Just went through this whole process. The most important thing is filing immediately. Don't second-guess it, don't wait for severance to end, just file. You can always ask questions later but you can't go back and change your filing date.

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Thanks for the advice. I'll file my claim today and figure out the details as I go.

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That's the right approach. Better to have your claim in the system than to wait and potentially lose time later.

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