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Disqualified from ESD unemployment after termination during layoff period - what happened?

I'm so confused and frustrated right now. I was temporarily laid off from my construction job (seasonal slowdown) in January 2025 and started collecting unemployment. About 3 weeks into my claim, my employer officially terminated me because they found out I had been doing some small side jobs during the layoff (just trying to make ends meet). They reported this to ESD, and now my claim shows as "disqualified" and I apparently owe back $1,850 for the weeks I already collected! I honestly didn't think I was doing anything wrong - I reported all my earnings from the side work each week. Does a termination automatically disqualify you even if you were legitimately laid off initially? Anyone deal with something similar?

Philip Cowan

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Unfortunately, the reason for your disqualification is likely because your employer changed your separation reason from 'laid off' (which is generally qualifying) to 'terminated for cause' (which is often disqualifying). ESD considers your most recent separation reason as the determining factor. If your employer provided evidence you were violating company policy by doing side work during layoff, that could be considered misconduct, which disqualifies you from benefits. You should immediately file an appeal if you believe the termination wasn't justified.

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Kara Yoshida

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Wow, I had no idea they could change the reason after I was already approved! My employee handbook doesn't say anything about not being allowed to work elsewhere during layoffs. Would that help my case? How do I even start the appeal process?

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Caesar Grant

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did u report ALL ur side work correctly on ur weekly claims?? that matters ALOT. if u reported everything correctly but still got disqualified then its probably cuz of the termination reason. but if u missed reporting even one payment they could call that fraud :

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Kara Yoshida

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Yes, I swear I reported everything! Every single dollar. I was super careful about that because I know they can come after you for fraud. That's why I'm so confused about this whole situation.

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Lena Schultz

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THE EXACT SAME THING happened to me last year!!! I was laid off, then my boss found out I was helping my brother's business part-time and FIRED me two weeks later. My unemployment got DENIED and I had to pay back $2,400!!!! I tried to appeal but ESD doesn't care that I was honest about my earnings. They only care that my "official separation reason" changed from layoff to termination. The system is RIGGED against workers!!!!

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Gemma Andrews

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Did you appeal the decision? I'm curious if you had any luck with that process. Sometimes the appeal judges see these situations differently than the initial ESD adjudicators.

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Lena Schultz

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YES I appealed and had a hearing with some judge and my employer. Lost because they had a written policy I signed when hired saying we can't work elsewhere during layoffs without permission. CHECK YOUR PAPERWORK!! Maybe you don't have that restriction and can win!

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Pedro Sawyer

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You need to file an appeal right away. You only have 30 days from the date of the disqualification notice. The appeal process lets you have a hearing with an Administrative Law Judge where you can explain your situation. What matters legally is whether your side work violated a known company policy and if that violation was serious enough to constitute misconduct. If you weren't aware of any policy prohibiting side work during layoffs, that's important to emphasize. In the meantime, keep filing your weekly claims even though you're disqualified. If you win your appeal, they'll pay you for those weeks retroactively.

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Kara Yoshida

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Thank you! I just found the disqualification letter dated last week, so I still have time to appeal. Should I gather any specific evidence before I file the appeal? I'm worried about facing my former employer at a hearing.

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Pedro Sawyer

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Gather any company handbooks, policies, or employment contracts you have. Look for anything related to outside employment or layoff procedures. Also compile evidence showing you correctly reported all earnings to ESD. If you have any communications with your employer about the layoff that indicated it was temporary and you'd be recalled, those would be helpful too. The more documentation, the better your chances.

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Mae Bennett

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Try calling ESD directly to ask for clarification on your disqualification. Sometimes there are specific details in your file that only they can see. They might be able to tell you exactly what rule they applied in your case. Good luck getting through though - I spent 3 weeks trying to reach someone about my claim issues.

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I was in this same endless calling loop until I found a service called Claimyr that got me through to ESD in about 20 minutes instead of spending days redialing. Their website is claimyr.com - they basically keep calling for you and connect you when they get through. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. Definitely worth it when you're dealing with a disqualification issue because those are time-sensitive.

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Kara Yoshida

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Thanks for the suggestion. I'll definitely try Claimyr if I can't get through in the next couple days. You're right that I need to understand exactly why I was disqualified before my appeal hearing.

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Gemma Andrews

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The legal distinction here is important. Under Washington unemployment law, if you were terminated for "misconduct" you can be disqualified from benefits, even if the initial separation was a layoff. The key for your appeal will be proving either: 1) You didn't violate any known company policy by doing side work during layoff, OR 2) Even if there was a policy, your violation wasn't serious enough to constitute "misconduct" under unemployment law Misconduct has a specific legal definition for unemployment purposes that's often more narrow than what employers think. Simple poor judgment or minor policy violations often don't rise to the level of disqualifying misconduct.

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Caesar Grant

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so basically its all bout the specific wording in the company handbook??? thats crazy man, no1 even reads those things when they get hired!

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Kara Yoshida

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I just checked all my paperwork and found something interesting. My layoff letter specifically says "temporary layoff due to seasonal work shortage" and mentions an expected recall date in April. It doesn't say anything about restrictions during the layoff period. Would this help my case? I'm definitely going to appeal now.

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Pedro Sawyer

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Yes! That letter is extremely valuable evidence for your appeal. It establishes that you were legitimately laid off initially and given no restrictions about other work. Be sure to bring a copy to your hearing and reference it specifically. This significantly strengthens your case, especially if there's no clear written policy prohibiting side work during layoffs.

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Kara Yoshida

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That's such a relief to hear! I'm going to file my appeal online today and include that information. Thanks everyone for your help - this has been so stressful trying to figure out by myself.

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