< Back to Washington Unemployment

Jackie Martinez

ESD denied second week for 'excessive earnings' after severance - is this normal?

I got laid off from my marketing position on January 15, 2025 and received a severance package (about $8,500 before taxes). I disclosed this on my unemployment application right away. My ESD claim status is confusing me - my first week is still sitting at 'pending' but my second week was flat-out denied citing 'excessive earnings.' Is this how it's supposed to work in Washington? My former coworkers in Oregon and California who also got severance are receiving benefits without issues. I'm getting worried since my severance will run out soon and rent in Seattle isn't cheap. Did I mess something up on my application? Anyone have experience with how ESD handles severance payments?

Lia Quinn

•

Your severance is considered income by ESD and will absolutely affect your benefits until it's 'used up.' They basically take your severance and divide it by your weekly benefit amount to determine how many weeks you're ineligible. This is completely normal - your friends in other states might have different rules, but Washington is pretty strict about this. Once your severance allocation period ends, you should start getting payments.

0 coins

Thank you for explaining! So if my weekly benefit amount would've been $850, and I got $8,500 severance, does that mean I'd be ineligible for 10 weeks? That's actually longer than I expected...

0 coins

Haley Stokes

•

the same thing happened 2 me!! my severance was only like $4000 and they denied me for like 6 weeks even tho i was totally unemployed. so stupid how they make us wait when we NEED the money

0 coins

Asher Levin

•

I don't think that's stupid. Unemployment isn't meant to be income on top of income. Severance IS income. Why should taxpayers fund benefits when you're still getting paid by your employer?

0 coins

Haley Stokes

•

bc its MY MONEY ive been paying into the system for years!!! and my severance barely covered 1 month of bills

0 coins

Serene Snow

•

This is definitely normal for Washington state. Here's what's happening: 1. Your severance pay is allocated over multiple weeks based on your prior wages 2. During this allocated period, you're considered to have "excessive earnings" 3. The first week shows pending because it's your waiting week (you never get paid for the first week in WA anyway) 4. The second week shows denied because your severance allocation is still in effect You should still file your weekly claims even during this period! Once your severance allocation period ends, you'll start receiving benefits automatically if you've been filing. If you don't file during this time, you'll lose those weeks permanently.

0 coins

Thank you so much for this detailed explanation! I'll definitely keep filing my weekly claims. Is there any way to find out exactly how long my severance allocation period will last? I don't see that info anywhere in my eServices account.

0 coins

i went thru same thing last yr!! kept getting denied bcuz of 'excessive earnings' for like 5 weeks after getting laid off with severance. but then it just started paying after that with no warning or notification. just keep doing ur weekly claims and eventually it'll switch

0 coins

Good to know it'll switch automatically. Thanks for sharing your experience!

0 coins

Romeo Barrett

•

Have you tried calling ESD to get a clear answer on exactly how many weeks your severance will affect your claim? When I faced a similar situation, I spent days trying to get through on their phone lines with no luck. I eventually used Claimyr (claimyr.com) to connect with an ESD agent in about 20 minutes - they have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 The agent was able to tell me exactly when my benefits would start and explained the whole severance allocation calculation. Totally worth it for the peace of mind rather than just guessing when my payments would begin.

0 coins

I hadn't heard of that service before, but I'll check it out. I've tried calling ESD about 15 times this week with no luck. Getting a firm date would really help me plan my finances better.

0 coins

This is BY DESIGN folks. The unemployment system isn't meant to DOUBLE PAY you when you're already getting money from your employer. Severance is considered INCOME. I don't get why people are surprised by this. Do people really expect to collect severance AND unemployment at the same time? That's not how it works!

0 coins

Haley Stokes

•

not everyone gets a huge severance package that lasts months. some of us got barely anything and still need help!!

0 coins

I understand the concept, I just wasn't familiar with how Washington specifically handles it compared to other states. Some states have different formulas or allow partial benefits. I'm just trying to understand the system better.

0 coins

Lia Quinn

•

You should be able to see your severance allocation period by logging into your eServices account and checking the "Decisions" tab. There should be a determination letter that explains exactly how many weeks your severance affects your claim. If you can't find it, ask for them to resend the determination letter - this will tell you exactly when you can expect payments to begin. And just to clarify something others have mentioned - it's not about the NUMBER of weeks you worked, but rather your severance amount divided by your weekly benefit amount. So if your severance was $8,500 and your weekly benefit would be $850, that's 10 weeks of ineligibility.

0 coins

Thank you! I checked the Decisions tab and found the letter. You're right - they calculated exactly 10 weeks from my layoff date before I'll be eligible. At least now I can plan accordingly.

0 coins

Asher Levin

•

One thing no one mentioned - make sure you're still doing your required job search activities every week even during this waiting period! You need 3 job search activities each week, and if you're not doing them and logging them properly, you could be denied benefits once your severance period ends. Don't make that mistake!

0 coins

Oh that's a really good point! I've been applying to jobs but wasn't logging them since I figured it didn't matter during this waiting period. I'll start documenting everything right away.

0 coins

Washington Unemployment AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
20,087 users helped today