Do I need to report severance & vacation pay to ESD after permanent plant closure?

I went thru this last year when my factory shut down in Everett. The way it worked for me was that severance didn't affect my UI benefits because it was a lump sum BUT the accrued vacation payout DID count as earnings for the week I received it. Had to report that one week's big payment and got no benefits that specific week, then normal UI resumed the following week. Keep trying to call ESD though because sometimes it depends exactly HOW your employer reports these payments to the state. Mine was clear on the severance vs vacation distinction but your HR might code it differently.

This is a common question with plant closures. Here's the official guidance: - Lump sum severance payments typically don't affect your UI benefits in Washington - Vacation/PTO payouts are reportable as earnings for the week received - WARN Act payments may be treated differently depending on how they're structured You should definitely clarify this with ESD before making your claim. When you report your earnings each week, there's a specific section for reporting severance, vacation pay, etc. Be completely transparent about what you received and when. If you're struggling to reach ESD by phone, try the secure message feature in your eServices account. Document everything, including your attempts to contact them about this issue.

OMG the samw thing hapned to me last yr!!! ESD website is THE WORST and nobody answers tha phone EVER. i ended up not reporting my severence and got a letter 4 months later saying i had an overpayment of like $5200!!!! had to do a payment plan and everything, absolute NIGHTMARE

After helping dozens of former employees navigate this exact situation, I can tell you that the distinction between types of final payments is critical. Washington state law (RCW 50.04.330) specifically exempts lump-sum severance payments from being considered wages for unemployment purposes, but vacation pay is different. The best approach is to clearly document everything. Get a written statement from your employer specifying: 1. The exact breakdown of your final payment (how much is severance vs. vacation vs. WARN Act) 2. The exact date(s) of payment 3. Whether any amount is allocated to specific time periods Report everything when you file, and include a note explaining the breakdown. This creates a record of your good-faith effort to report correctly.

Have you tried using Claimyr to reach ESD? I was in the same boat last month, couldn't get through for days. A coworker recommended Claimyr (claimyr.com) - it's a service that basically waits on hold for you then calls you when an ESD agent is on the line. Worked great for me, and they have a video that shows how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 I had a similar question about how to report my final checks and needed a definitive answer. The ESD agent was able to note my account with the correct reporting instructions for my specific situation.

just wondering...how much severance did u guys get? our company is going thru something similar and they're offering us just 1 week per year of service which seems really low

Important update: I just checked with a colleague who specializes in plant closures. The key factor is whether your severance payment represents payment for a specific period of time or is truly a lump sum with no time allocation. If your severance agreement states that the payment covers X weeks or months after your termination, ESD may consider that allocated to those weeks and it could reduce your benefits during that period. If it's a true lump sum with no time allocation, then it shouldn't affect your benefits. Check your severance agreement documentation carefully!

One more thing - if your plant closure involves more than 50 employees, ESD might have a specialized rapid response team to help everyone. Ask your union rep if ESD has been notified of the mass layoff. Sometimes they set up special processes for large closures.

I'm going through a similar situation right now with my company's closure. From what I've learned talking to others who've been through this, the key is being completely transparent with ESD about everything you receive and when. My approach has been to report ALL payments when I file my weekly claims, but include detailed notes about what each payment represents (severance vs vacation vs WARN compensation). This way there's a clear paper trail showing I'm not trying to hide anything. Also, don't stress too much about the phone situation - I've found that ESD's online chat feature during off-peak hours (early morning or late evening) sometimes gets you through faster than calling. You can also try calling right when they open at 8am on weekdays. The most important thing is documenting your attempts to get clarification and being honest about what you received. Good luck with everything!