Laid off with severance package - can I still get ESD unemployment benefits if I sign the agreement?

I went through this exact situation last year. The important thing is what ACTUALLY happened, not what the paperwork says. If you were told your position was eliminated or that you're being laid off, that's what matters. When you file with ESD, you'll mark that you were laid off and explain the severance situation. In my case, I received 6 weeks of severance but still qualified for unemployment after that period ended. ESD may contact your employer to verify the circumstances, but they understand these corporate games. My advice: document everything. Save any emails or communications that mention 'layoff' or 'position elimination.' During your exit meeting, ask for clarification about why you're being let go and take notes. If they say anything about business needs, restructuring, or elimination of position, write it down with the date and time.

BE CAREFUL WHAT U SIGN!!!! My bro in law signed one of these last year and got SCREWED. The paper literally said he 'voluntarily resigned' even tho his whole dept got cut! ESD denied him and the appeal took FOREVER. The companies do this on PURPOSE to save $$$$. Read every single word before signing ANYTHING!!!!

This is a common issue that I've seen many times. Here's what you need to know: Washington State looks at the actual circumstances of separation, not just the paperwork. If you were genuinely laid off due to lack of work, business restructuring, or position elimination, you should qualify for benefits regardless of how the severance agreement characterizes it. That said, you should consider negotiating the language in the severance agreement. It's completely reasonable to ask them to change 'voluntary resignation' to 'layoff' or 'position elimination.' Many employers will agree to this change if you ask. Regarding the severance itself: You must report it to ESD when you file. Depending on how it's paid out, it may delay the start of your benefits. If you receive a lump sum, ESD typically allocates it over the period it represents (e.g., 8 weeks of pay might delay benefits for 8 weeks). If it's paid as regular salary continuation, it works the same way. One important note: Make sure you still file your initial claim right away, even if severance will delay your actual payments. The claim establishment date matters for your benefit year.

just went thru similar in dec. signed the paper 4 severance ($$$ was 2 good 2 pass up lol) but it did say voluntary on it which was BS cuz they eliminated my whole team. still got UI tho! in the esd app i just explained exactly what happened n that the company made me sign that 2 get severance but i didn't actually quit. esd approved me after like 10 days no problem

I had so much trouble reaching ESD when I was dealing with a similar situation last year - the phone lines were always busy and I was desperate to get answers about my eligibility. I found this service called Claimyr (claimyr.com) that helped me actually get through to an ESD agent instead of waiting for weeks. They have a video that shows how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3 The ESD agent I spoke with confirmed that being laid off and receiving severance doesn't disqualify you from benefits, but they might delay the start of your payments until after the severance period. The most important thing is to be honest about the circumstances when you file your claim, even if the paperwork uses different language.

My company did the EXACT same thing when they laid off 30% of staff in January. The severance agreement said something like "employee agrees this separation is voluntary" but our attorney said that's just standard corporate language to prevent lawsuits. When I applied for unemployment, I just truthfully stated I was laid off due to workforce reduction. Got approved no problem, though I had to wait until after my severance period to start collecting benefits. Don't stress too much about it.

To answer your follow-up question - yes, you should file your UI claim immediately after your last day of work, even though you're receiving severance. ESD will determine when your benefits actually begin based on your severance amount. In my case, I received my severance as a lump sum payment. I reported this on my UI application, and ESD essentially "allocated" that payment across several weeks (dividing the total by my weekly wage). My actual UI payments began once that period ended. But by filing immediately, I established my claim and didn't lose any potential benefit weeks. Regarding the language in the agreement - it's definitely worth asking HR to change it, but if they refuse, I'd probably still sign for the severance money. Just be completely honest with ESD about the real circumstances of your separation when you file. In most cases, ESD recognizes these corporate tactics.

One more important note: When you have your exit meeting, try to get them to explicitly state the reason for your separation in writing. If they say it's due to "business needs," "reorganization," "position elimination," or similar terms, ask for that in an email or letter. This documentation will be valuable if there's any dispute about your UI eligibility. When you file your claim, you'll have the opportunity to explain the circumstances. Be clear that you were laid off but received severance with certain conditions. The ESD adjudicators are familiar with these situations and will look at the totality of circumstances, not just the language in a severance agreement. As others have mentioned, your severance may delay the start of your benefits, but it won't necessarily make you ineligible altogether. Make sure you're completing all your weekly claims during this time, even if you're not receiving payments yet.