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ESD 'excess earnings' due to severance pay - when will benefits actually start?

I got laid off at the end of November 2024 with my company providing severance pay through December. Every weekly claim I've filed in December has been marked as 'excess earnings' by ESD. The severance was paid on my regular bi-weekly schedule at my normal hourly rate. I've been completely separated from my employer - no benefits, no ties whatsoever, just receiving these final payments. According to the ESD website, severance affects UI benefits in certain situations, but I'm confused because my most recent weekly claim (now that severance has ended) was finally accepted. Should my benefits start flowing now, or is something wrong with my claim? I've tried calling but can't get through. Is this worth escalating to the governor's office, or am I being impatient?

This is actually normal and working as intended. Severance pay is considered 'deductible income' by ESD and gets reported as earnings during the weeks you receive it. Since your severance was paid at your regular rate, it likely exceeded your weekly benefit amount, resulting in those 'excess earnings' determinations. The good news is that you did everything correctly by continuing to file weekly claims during this period, and now that your severance has ended, your regular UI benefits should begin without any further action needed from you. You don't need to involve the governor's office - this is standard procedure.

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Thank you so much for clarifying! I was starting to panic thinking something was wrong with my claim. So just to make sure I understand - the weeks I filed during December still count toward my UI claim even though I didn't receive benefits for those weeks due to excess earnings? And the payments should automatically start now?

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OMG I had literally THE SAME THING happen to me last year when I got laid off! My company gave me 6 weeks severance and I kpet getting those stupid excess earnings messages. I was freaking out thinking my claim was denied or something!!! But yea as soon as the severance ended the benefits started showing up in my account. Just keep filing every week and you should be fine. Its actualy good you already filed for all those weeks because it shows ESD you were available for work the whole time.

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That's a relief to hear! I was worried I'd done something wrong or needed to call them to get it fixed. How long did it take for your first payment to show up after your severance ended? I'm trying to budget for January bills.

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For me it took like 3 days after I filed that first week with no severance. Butt thats because I had already done the waiting week during my severance period. Did u file for all of December? If you did one of those should of been ur waiting week and you won't get paid for that one FYI

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I'm a bit surprised people are suggesting this is working as intended without asking more questions. In WA state, how severance is treated depends on HOW it was paid. If it was truly severance (a lump sum payment for job loss) rather than "continuation pay" (keeping you on payroll after termination), it might be handled differently. The key distinction is: 1. Continuation pay: Treated as wages and reduces benefits during the weeks paid 2. True severance: Might not reduce benefits if paid as a lump sum Since you mentioned being paid "bi-weekly at my normal hourly rate," ESD is treating this as continuation pay, which explains the excess earnings determinations. If your severance has ended and your most recent claim was accepted, you should start receiving benefits now. And no, contacting the governor's office would be premature. If you don't receive benefits within 10 days after your first eligible week, contact ESD directly first.

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Thank you for the detailed explanation. It was definitely continuation pay - they kept me on regular payroll through December even though I was no longer working or receiving benefits. I'll wait for the payment to come through before escalating anything.

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the govs office wont help u anyway. they just send u back to esd. ive been dealing with them for months!!!! system is totally broken. they dont even answer they stupid phones.

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If you're having trouble getting through to ESD agents on the phone (which is super common), I'd recommend trying Claimyr. I was in a similar situation with confusing excess earnings messages and couldn't get anyone to explain it to me. Claimyr helped me actually connect with an ESD agent instead of waiting on hold forever. They have a video that shows how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 and their website is claimyr.com. Worked for me when I was desperately trying to understand why my benefits weren't coming through.

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Thanks for the tip! I'll keep this in mind if I don't see the benefits start within the next week or so. Did you find the ESD agents helpful once you got through to them?

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Yeah, surprisingly helpful! The agent I spoke with actually took the time to go through my claim week by week and explained exactly which weeks were affected by excess earnings and when I could expect payments to begin. They also gave me an exact timeline for when the first payment would process.

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Just wait a few more days before doing anything drastic. I got laid off in October and had something similar happen with my severance. Once that last severance payment cleared, my UI benefits started automatically the next week. The excess earnings messages are normal - it just means you made too much money those weeks to qualify for unemployment. Keep filing your weekly claims and job search activities as usual.

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I think your confusing severance pay and continuation pay as someone else pointed out. If its REAL severance (like a lump sum payment) you might be eligible for benefits during that time depending on how its reported. But sounds like your company just kept you on payroll an extra month which is definately going to count as excess earnings. Did you report the income correctly each week when filing? That's super important or you could get hit with an overpayment later.

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Yes, I reported all the income exactly as it came in each week. I think you and the other commenter are right - it was continuation pay since they kept me on regular payroll through December. I'll be extra careful to report any additional income going forward too.

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Just to clarify something important that hasn't been mentioned yet: even though you didn't receive benefits during your severance period due to excess earnings, those weeks DID count toward your benefit year and one of them should have satisfied your waiting week requirement. This means once your eligible weekly claims begin (with no/low earnings), you should receive payment for that first eligible week without another waiting period. You should see payment within 2-3 business days after filing your first eligible weekly claim. If you filed on Sunday for the previous week and had no earnings to report, you should see payment by Wednesday or Thursday at the latest.

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That's really helpful to know! I've been filing consistently every Sunday, so based on what you're saying, I should see my first payment this week. I'll check my account tomorrow and see if anything has been processed yet.

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Also make sure your looking at the right page on eServices! My friend thought she wasnt getting benefits for like a month because she was only looking at the main page summary thing. You gotta click through to see the detailed payment history sometimes to see if money is pending or has been sent to your card/bank.

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