Layoff severance, stock bonus, and transitional pay - how do these affect ESD benefits?

The stock bonus and transitional pay are probably considered separation payments but NOT severance. ESD treats different types of post-employment payments differently. When I was laid off last year, my retention bonus ended up delaying my benefits because it was considered wages.

I can help clarify this. According to ESD rules, your 4-week severance lump sum won't affect your unemployment benefits because it meets all four criteria you mentioned. However, your stock bonus and transitional payout will likely be considered "separation pay" rather than severance. Separation pay is typically deducted from your unemployment benefits for the week(s) it would cover based on your usual weekly wage. Example: If your weekly wage was $1000, your $2000 in combined stock bonus and transitional pay would likely be considered equivalent to 2 weeks of pay, potentially making you ineligible for benefits for those 2 weeks. As for when to apply, you should file your claim immediately after your last day worked (August 27th). Filing ahead of time isn't possible as you're still employed. When filing, be completely transparent about ALL payments you're receiving.

ESD is SOOO inconsistent with how they handle this stuff!! When I got laid off in January they counted my retention bonus as wages and deducted it from benefits, but my friend who got laid off from the SAME COMPANY had his retention bonus considered as separation pay that didn't affect his benefits at all. It's ridiculous! You should definitely call them to get a clear answer for your specific situation before making any assumptions.

when i got laid off my company gave me 6 weeks severance and it didnt affect my unemployment at all. started getting benefits right away. but didnt have any stock bonuses or whatever so cant help with that part sorry

To add to what others have said, your severance package is straightforward and won't impact benefits. For the stock bonus and transitional payout, ESD will likely allocate these as "wages" for a period after your separation. Here's what will happen: 1. You file on August 27th (do not file earlier) 2. In your application, you'll report ALL payments (severance, stock bonus, transitional pay) with their amounts and dates 3. ESD will calculate how many weeks your $2000 (stock+transitional) covers based on your regular weekly wage 4. You won't receive benefits for those weeks 5. After that period, your regular benefits will begin Be extremely specific when reporting these payments. Call them exactly what your employer calls them on paperwork. This helps ESD categorize them correctly.

i think everyones overthinking this. just apply after ur last day and be honest about what ur getting paid. the esd system will figure it out. i got confused with all my paperwork too but it sorted itself out.

One important thing nobody has mentioned - make sure you know the EXACT DATE you'll receive each payment. ESD will want to know this, and it matters for how they allocate the payments. If your HR department hasn't given you specific payment dates for each type of payment, ask them now before you file. Also, if your stock bonus is actually RSUs (restricted stock units) vesting, that's treated differently from a cash bonus. The timing of when RSUs vest vs when they're converted to cash can impact how ESD views them. Definitely apply on August 27th, not before. And set a reminder to complete your first weekly claim the following week - many people forget this step and it delays their benefits.

Just went through a similar situation last month! One thing that really helped me was getting everything in writing from HR before my last day. I asked them to provide a written breakdown of each payment type, the amounts, and the exact dates I'd receive them. This made filing my claim so much smoother because I could reference the official documents when answering ESD's questions. Also, when you file your claim, there's a section specifically for "separation payments" - don't just lump everything together. List each payment separately with its own description. The ESD adjudicator who reviews your claim will appreciate the clarity and it reduces the chance of delays or mistakes. Good luck with everything! The waiting period for those additional payments is frustrating, but at least you'll know exactly when your benefits should start flowing.