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ESD timing question - Apply for UI after severance period ends or last working day?

I'm trying to figure out the right timing for filing my unemployment claim with ESD. My situation is a bit complicated: my last actual working day was June 3rd, but my official termination date isn't until August 5th (8 weeks later). My employer is providing a severance package where I'll remain on payroll as a non-working employee with full benefits during those 8 weeks. I'm confused about when I should apply for UI benefits: - Should I apply now based on my last working day? - Or should I wait until after my official termination date when the severance period ends? Also, will receiving this severance package reduce the number of weeks I'm eligible for ESD benefits? I've heard conflicting information about how severance affects unemployment. Any advice from someone who's been through this would be really helpful!

Oscar O'Neil

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You need to wait until your severance period ends before applying. According to ESD rules, you're still considered employed during your severance period since you're receiving regular wages and benefits. If you apply now, you'll be denied because you're still on payroll - ESD will consider this as receiving regular wages. And yes, severance pay does impact your UI benefits. The weeks you receive severance count against your benefit year, effectively reducing the total amount of UI you can receive.

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LongPeri

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Thanks for the quick response! So even though I'm not actually working, because I'm getting regular paychecks, I'm not eligible until August 5th? That makes sense but it's frustrating to basically lose 8 weeks of potential benefits.

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Sara Hellquiem

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Acutally thats not 100% right. You should apply on your last day of WORK not when severence ends. ESD needs to know when you stoped working. But they will probably not pay you until after the severence is done. You wont lose weeks of eligibility but the payments wont start til the severence is over.

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LongPeri

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Wait, now I'm confused. So I should apply on June 3rd (last working day) but just understand I won't receive payments until after August 5th? Would I need to do weekly claims during that period even though I'm not receiving benefits?

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Charlee Coleman

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Let me clarify the confusion here. You should apply for UI as soon as you stop working (June 3rd in your case). Here's why: 1. Applying establishes your claim and your base year for calculating benefits 2. Your severance will delay when you start RECEIVING benefits, but doesn't affect WHEN you should apply 3. Yes, you should do weekly claims during your severance period, even though you won't receive benefits during that time 4. You must report your severance pay when you file and in your weekly claims Regarding your second question - severance doesn't reduce your total WEEKS of eligibility, but it does delay when you can start collecting. Once your severance period ends, you can begin receiving your regular UI benefits, assuming you meet all other eligibility requirements (job searching, etc.).

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LongPeri

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Thank you! This makes much more sense. So I apply now, report my severance accurately, file weekly claims, and then benefits would start after my severance period ends. I appreciate the clear explanation.

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Liv Park

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I went through this EXACT situation last year!!! Applied on my last working day but didn't get any payments until after my severance ran out. BUT I HAD TO DO THE WEEKLY CLAIMS THE WHOLE TIME or I would have lost those weeks. ESD's system is so frustrating to deal with. I remember having to call like 50 times before getting through when I had questions about how to report my severance properly.

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Ryder Greene

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does anyone know if the 8 week severance affects the benefit amount too or just delays when you start getting paid?

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Oscar O'Neil

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It just delays when you start getting paid. Your weekly benefit amount is calculated based on your base year wages (typically the first 4 of the last 5 completed calendar quarters before you apply). The severance doesn't affect that calculation - it just means you're not eligible to receive benefits during weeks you're receiving severance.

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Carmella Fromis

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MAKE SURE you keep doing your job search activities during the severance period!!! I messed this up and lost weeks of benefits because I thought I didn't need to do job search until my benefits actually started. You need 3 job search activities each week even during the severance period if you want to claim those weeks later.

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LongPeri

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Oh wow, I hadn't even thought about that part. So I need to be doing the 3 job search activities per week starting immediately after my last working day, not after the severance ends? That's really important information - thank you!

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Charlee Coleman

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One more thing to be aware of: When you report your severance on your initial application, make sure you select the correct classification. There's a difference between "severance pay" and "continuation of wages" in how ESD treats them. Since you're staying on payroll with benefits for 8 weeks, this sounds like continuation of wages. Be very specific when reporting this to avoid adjudication delays.

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LongPeri

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That's a really helpful distinction. My separation letter calls it a "severance package" but describes it as "continued salary and benefits for 8 weeks." I'll make sure to classify it correctly as continuation of wages when I apply. I really appreciate everyone's help with this!

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