< Back to Washington Unemployment

ESD eligibility when company is sold and position eliminated? Confused about my options

I just found out my company is being sold to another firm and my current position won't exist after the transition (happening in about 5 weeks). I'm trying to understand if this qualifies me for unemployment benefits through ESD. My manager mentioned something about a "lack of work" situation, but I'm confused because technically I'm not being fired or laid off - my position is just disappearing. I've been with the company for 3.5 years and am worried about finding something comparable quickly. Does anyone know if I qualify for unemployment in this situation? Do I need to wait until my last day to file, or can I start the process earlier? Any advice appreciated!

Carmen Diaz

•

yes this is definitely a layoff situation even if they dont call it that. when your position is eliminated its considered "lack of work" which is exactly what qualifies for UI. dont quit early tho or they might say you left voluntarily!!

0 coins

Yuki Tanaka

•

Thanks for the quick response! Really relieved to hear this. So should I wait until my actual last day to apply for benefits? And is there anything specific I should make sure is included on my separation letter?

0 coins

Andre Laurent

•

This is considered a qualifying separation under ESD rules. When a business is sold and positions are eliminated, it falls under "lack of work" which is one of the primary qualifying reasons for unemployment benefits. Here's what you should do: 1. Wait until your actual last day to file your initial claim 2. Make sure your separation letter clearly states your position was eliminated due to the company sale (not performance) 3. When filing, select "laid off/lack of work" as your reason for separation 4. Have your last 18 months of employment history ready as ESD will need this information If the new company offers you a position that is substantially different (lower pay, different duties, etc.), you may still qualify even if you decline it, but that gets more complicated.

0 coins

Yuki Tanaka

•

This is incredibly helpful, thank you! I'll make sure my separation letter includes the specific language about position elimination. Do you know if there's a waiting period after filing before benefits kick in? I'm trying to budget accordingly.

0 coins

Emily Jackson

•

i went through something similar when my retail store was bought out last year!!! waiting period is one week after u file but make sure u do the weekly claims every single week even while waiting for approval or u lose $$$$$

0 coins

Yuki Tanaka

•

Good to know about filing weekly claims right away - I wouldn't have known that. Were you able to get benefits pretty quickly once approved?

0 coins

Liam Mendez

•

In Washington state, position elimination due to a business being sold absolutely qualifies for unemployment. The key is making sure your employer reports the separation correctly to ESD. Request documentation in writing that clearly states your position was eliminated due to the business sale, not for performance reasons. Also, be aware that if the new company offers you a position, you may be required to accept it if it's considered "suitable work" (comparable pay, similar duties, reasonable commute). Declining suitable work can disqualify you from benefits. As others mentioned, there's a one-week waiting period before benefits start, and you must file weekly claims starting immediately, even during the waiting period. The maximum weekly benefit amount is currently around $995 depending on your previous earnings.

0 coins

Yuki Tanaka

•

Thanks for this detail. The new company hasn't offered anything yet, but I'll keep in mind what you said about "suitable work" if they do. Really hope this doesn't end up in adjudication - seems like that can delay things significantly.

0 coins

Sophia Nguyen

•

they told me my job was being eliminated when my company got sold but then the new owners just hired someone else for basically the same job with a different title!! fought with ESD for MONTHS trying to get benefits because the company claimed i was fired for performance instead of position elimination. make sure you get EVERYTHING in writing!!!

0 coins

Jacob Smithson

•

That's terrible! Did you eventually get approved? I'm dealing with a similar situation and wondering if I should get a lawyer involved. ESD keeps giving me the runaround.

0 coins

Isabella Brown

•

I've tried calling ESD multiple times with questions about my claim in a similar situation, and it's almost impossible to get through. After weeks of frustration, I found this service called Claimyr (claimyr.com) that got me connected to an actual ESD agent in about 15 minutes instead of spending hours redialing. They have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 Totally worth it for getting clear answers directly from ESD about my eligibility when my company changed ownership. The agent was able to note specific details on my account that prevented issues later.

0 coins

Jacob Smithson

•

Does this actually work? I've been trying to reach ESD for two weeks with no luck. My claim has been stuck in processing and I'm getting desperate.

0 coins

Maya Patel

•

Whatever you do DON'T QUIT before the transition!!!! My friend did that when his company was being acquired and ESD denied him because they said he voluntarily quit. Make them lay you off officially.

0 coins

Yuki Tanaka

•

Definitely not planning to quit - I need the income right up until the end. Thanks for reinforcing this important point!

0 coins

Emily Jackson

•

ur supposed to start looking for work right away just fyi. they want u to do like 3 job search activities every week and u gotta log them. i got in trouble for not doing enough job searches even tho i was waiting for my claim to be approved lol

0 coins

Yuki Tanaka

•

Good reminder about the job search requirements. Do you know if those start immediately when I file, or after the waiting week?

0 coins

Andre Laurent

•

To answer your follow-up question: Yes, job search requirements begin immediately with your first weekly claim. You need to complete and document at least 3 job search activities each week. Regarding getting your benefits quickly after approval: If your case is straightforward (position elimination clearly documented), you could see benefits within 2-3 weeks of filing. However, if your claim goes to adjudication for any reason, it could take 6-8 weeks or longer. One more tip: Make sure your employer uses the correct separation code when reporting to ESD. For position elimination due to business sale, it should be coded as a lack of work/layoff situation, not a voluntary quit or termination. This single detail can make the difference between a smooth claim and months of fighting the system.

0 coins

Yuki Tanaka

•

This is really helpful - I'll definitely follow up with HR to make sure they're using the right separation code. I'm going to start job searching right away regardless, but it's good to know exactly when the official requirements kick in. Thank you!

0 coins

Emily Jackson

•

btw when u file online it asks for a whole bunch of past employers and pay stubs and stuff so get that ready b4 u start the application. took me like 2 hours to finish everything

0 coins

TaxRefund AI

Expert Assistant
Secure

Powered by Claimyr AI

T
I
+
6,725 users helped today