Reporting retro pay from union settlement on ESD weekly claim - severance pay or earnings?
I just got caught in a weird situation with my ESD claim. My former employer just sent me two checks for retro pay from a union settlement (basically back pay for hours I already worked). This is a one-time payment and definitely NOT severance since it's for actual work I did, not termination pay. I need to report this on my weekly claim for the week ending 2/23, but I'm completely stuck on HOW to report it. Is this considered earnings for that week? Or some kind of severance? The ESD website is super confusing about this kind of situation. I've tried calling ESD like 20 times but keep getting the "high call volume" message and disconnected. Has anyone dealt with retro pay on their unemployment claim before? What category did you put it under?
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Liam O'Connor
You should report it as earnings for the week you received the payment, not the week you earned it. This is different from severance. On your weekly claim, there's a question about whether you received any income - select yes, then choose "earnings." Since it's for work you already did but just got paid for now, ESD considers it income for the week received. Your benefit might be reduced or zeroed out for that week depending on how much the retro pay was.
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CosmicCadet
•Thanks for clarifying! So even though I did the work months ago, I still report it for the current week? That makes sense but feels weird. Will this affect my claim going forward or just for this week?
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Amara Adeyemi
Went thru this exact thing last yr when my union won backpay. its NOT severence. U report it as EARNINGS for the week u get paid. my benifits got reduced that 1 week but went back to normal after
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CosmicCadet
•That's a relief to hear! Did you have to provide any documentation or explanation to ESD? I'm worried they'll think it's weird to suddenly have income from my old employer.
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Amara Adeyemi
•nope just reported it normal and it was fine. they might adjust ur benefit that week but thats it
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Giovanni Gallo
This is a bit more complicated than some are suggesting. According to ESD guidelines, retroactive pay settlements should be reported as follows: 1. Report it as earnings for the week you RECEIVE the payment (not when you earned it) 2. You must report the GROSS amount (before taxes/deductions) 3. This will likely reduce or eliminate your benefit for that week only 4. It will NOT affect your overall claim or future weeks 5. Keep documentation of the retro pay in case ESD requests verification One important note: If the amount exceeds your weekly benefit amount, you won't receive benefits for that week, but it won't count against your total benefit amount - you'll still have those benefits available for future weeks.
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CosmicCadet
•This is incredibly helpful, thank you! So basically I report it, might not get benefits that week, but then everything continues normally after that. Makes sense. I'll definitely keep all the documentation just in case.
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Fatima Al-Mazrouei
I'm in the EXACT same situation - union settlement retroactive pay! I've been trying to get through to ESD for THREE DAYS with no luck. Always get hung up on after waiting 20+ minutes. So frustrated with their phone system!!
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Dylan Wright
•Have you guys tried using Claimyr? It's the only way I could actually reach a real person at ESD last month. I was in the same boat - calling over and over for days getting nowhere. The service basically holds your place in line and calls you when an agent is ready. Saved me hours of frustation. Their site is claimyr.com and they have a video showing how it works: https://youtu.be/7DieNd3C7zQ?si=26TzE_zGms-DODN3. Way better than getting hung up on 50 times in a row!
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NebulaKnight
Not severance!! ESD considers this as wages in the week received. source: happened to me twice
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Sofia Ramirez
I think you're all missing something important here. Retroactive pay from a union settlement might actually be considered a "PENSION, RETIREMENT, OR ANNUITY PAYMENT" in some cases depending on how the settlement was structured. I'd be very careful about how you report this without talking to ESD directly. When I had a similar situation they flagged my account for potential fraud because I reported it wrong initially.
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Giovanni Gallo
•This is incorrect information. Union settlement backpay for hours already worked is NOT considered pension/retirement/annuity. It's categorized as earnings in the week received. This is clearly outlined in ESD's handbook under section 4.2 regarding wages and income reporting. Reporting it as pension could actually cause more complications with the claim.
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Dmitry Popov
just wondering - how much was the retro pay if u dont mind sharing? our union is negotiating something similar right now
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CosmicCadet
•I'd rather not share the exact amount publicly, but it was a few thousand dollars total spread across two checks. It was for a 3% retroactive raise going back about 9 months. Hope your union negotiation goes well!
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Liam O'Connor
Based on everyone's feedback and my own experience with ESD, I'd suggest the following steps: 1. Report the retro pay as earnings for week ending 2/23 2. Enter the gross amount (before deductions) 3. Keep copies of both checks and any explanation letter from your employer 4. If your weekly claim gets flagged for review, be prepared to explain it's retro pay from a union settlement 5. Remember this only affects the one week - your claim continues normally after Glad you got this figured out! ESD's system doesn't handle special situations like this very clearly.
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CosmicCadet
•Thank you for the step-by-step! I just filed my weekly claim and reported it exactly as you suggested. I did get a message saying my benefits would be reduced for this week, but that's fine as long as my ongoing claim isn't affected. I appreciate everyone's help - this community is amazing!
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