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Daniel Washington

Do you get Washington ESD unemployment if you get severance pay?

Just got laid off from my job after 8 years and they're giving me a severance package worth about 12 weeks of pay. I'm wondering if I can still file for unemployment benefits with Washington ESD while receiving this severance? The HR person wasn't clear about how this affects my eligibility. Has anyone dealt with this situation before?

Yes, you can typically receive unemployment benefits even with severance pay in Washington state. The key thing is that severance doesn't disqualify you from UI benefits, but it might affect the timing of when you can start collecting. Washington ESD looks at whether the severance is considered wages or not.

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That's good to hear! Do you know if they count the severance as income week by week or just as a lump sum?

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It depends on how your employer structured it. If it's paid out over time, Washington ESD usually counts it week by week. If it's a lump sum, they typically don't reduce your weekly benefits.

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I had this exact situation last year. Got 6 weeks severance but Washington ESD still approved my claim. The tricky part was getting through to someone to ask questions about it. Spent hours on hold trying to reach an agent.

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How long did it take for your claim to get processed? I'm worried about delays.

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Mine took about 3 weeks because it went into adjudication. They needed to verify the severance details with my former employer.

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How much does something like that cost? Seems like we shouldn't have to pay extra just to talk to Washington ESD.

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I get the frustration, but honestly it was worth it for me. The peace of mind knowing I could actually get answers about my claim was huge. Plus they don't ask for any personal info which I appreciated.

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Might be worth looking into if I can't get through myself. Thanks for the suggestion!

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Be careful about when you file your initial claim. If your severance is being paid out weekly, you might want to wait until after it ends to file. Otherwise you could end up with complications during the adjudication process.

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Mine is being paid as a lump sum next week, so I should be okay to file right after my last day of work?

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Yes, lump sum severance typically doesn't interfere with your weekly benefit amount. Just make sure to report it accurately when you file.

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ugh the whole severance thing is so confusing! my company told me i might not qualify for unemployment at all because of the package they're giving me. sounds like they were wrong??

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Unfortunately some HR departments don't know the Washington ESD rules very well. Severance generally doesn't disqualify you from unemployment benefits.

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that's what i was hoping to hear. going to file my claim tomorrow then

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One thing to watch out for - make sure you understand if your severance includes any non-compete clauses that might affect your job search requirements. Washington ESD requires you to be actively looking for work.

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Good point! I do have a non-compete but it's only for direct competitors. Should still be able to search for other positions.

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Right, as long as you can demonstrate you're available for work and actively searching, the non-compete shouldn't be an issue for your UI claim.

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I'm so stressed about this whole process. Been laid off for a week already and haven't filed yet because I'm scared I'll mess something up with the severance reporting. What if they think I'm trying to hide something?

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Don't stress too much! Washington ESD actually wants you to report all income accurately. Being honest about your severance won't hurt your claim.

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Thanks, I really needed to hear that. Going to file this weekend.

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If you have specific questions about reporting your severance, that Claimyr service I mentioned earlier could help you talk to an Washington ESD agent directly. Sometimes it's reassuring to get official confirmation.

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The Washington ESD website has some good info about this but it's buried pretty deep. Basically severance payments don't count as wages for unemployment purposes in most cases.

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Do you remember which section of their website? I've been looking but it's hard to navigate.

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I think it was under the 'Eligibility Requirements' section, but honestly their site is pretty confusing to navigate.

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Another tip - when you file your weekly claims, there's usually a specific question about severance or other payments. Make sure you answer that accurately each week even if the amount is zero.

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Good to know! I want to make sure I don't accidentally trigger any red flags.

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Exactly right. Consistency in your weekly claim reporting is key to avoiding delays or adjudication issues.

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does anyone know if vacation payout affects this too? i'm getting vacation time paid out along with the severance

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Vacation payout is usually treated similarly to severance - it typically doesn't disqualify you from benefits but should be reported when you file.

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ok cool, so i should report both the severance and vacation payout amounts when i file my claim

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Just wanted to add that if your claim does go into adjudication because of the severance, don't panic. It's pretty routine and usually gets resolved within a few weeks as long as you provide the documentation they request.

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What kind of documentation do they usually want for severance situations?

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Usually just your severance agreement or a letter from HR explaining the terms. Sometimes they want pay stubs showing your final payments.

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I should probably save copies of everything from my employer then, just in case.

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Pro tip: file your claim as soon as possible after your last day of work, even with the severance. There's usually a waiting week anyway, and you don't want to lose out on potential benefits while you're figuring things out.

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That makes sense. Better to get the claim started and sort out any issues than to wait and potentially miss out.

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Agree with this completely. The sooner you file, the sooner your claim can be processed and you can start receiving benefits if eligible.

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One more thing - if you do have issues reaching Washington ESD about severance questions, that Claimyr service someone mentioned earlier really does work. I used it twice during my claim and both times got connected to agents who could answer my specific questions.

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Good to hear another positive experience with that. I'm definitely keeping it as a backup option if I can't get through on my own.

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Yeah, I'm probably going to try it too. The thought of sitting on hold for hours is just too stressful right now.

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Remember that even if your severance affects your first few weeks of benefits, you can still file your weekly claims. This keeps your claim active and ensures you don't have gaps in coverage once the severance period ends.

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So I should keep filing weekly claims even if I'm not receiving benefit payments during the severance period?

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Exactly! This maintains your claim status and ensures continuous coverage. Just report your severance income accurately on each weekly claim.

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Final thought for the OP - don't let your former employer's HR department discourage you from filing. They may not understand Washington ESD rules fully. You have the right to file for unemployment benefits, and Washington ESD will make the determination based on their guidelines, not your employer's interpretation.

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Thank you so much everyone! This thread has been incredibly helpful. I feel much more confident about filing my claim now.

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Good luck with your claim! Don't hesitate to ask if you run into any other questions during the process.

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