Washington ESD unemployment eligibility after taking severance package - need help understanding the rules

Severance payments can definitely affect your Washington ESD unemployment benefits, but it depends on how the severance is structured and paid out. If it's paid as a lump sum, it usually doesn't delay your weekly benefits. If it's paid out over time like regular paychecks, then you might have to report it as earnings during those weeks.

I took severance last year and had no issues getting unemployment. Just make sure you're honest about it when you file your claim online.

The key thing with severance and Washington ESD is whether there are any strings attached to the payment. If your employer is requiring you to sign a non-compete or agree not to work for competitors, that could potentially affect your availability for work requirement. But if it's just a standard severance with no work restrictions, you should be fine to collect UI benefits.

Had a similar situation a few months ago and couldn't get through to Washington ESD on the phone for weeks to ask about my severance. Finally used this service called Claimyr (claimyr.com) that got me connected to an actual agent in like 15 minutes. They have a video demo at https://youtu.be/7DieNd3C7zQ that shows how it works. The agent was able to review my severance agreement and confirm it wouldn't affect my weekly benefits since it was a lump sum payment.

TAKE THE SEVERANCE! I made the mistake of turning down severance thinking it would complicate my unemployment claim and it was the dumbest decision ever. You can definitely get both.

One thing to watch out for - if your severance includes continuation of health benefits or other non-cash compensation, make sure you understand how Washington ESD values those benefits. Sometimes they count toward your earnings even if you're not getting cash.

The timing of when you receive the severance matters too. If you get it before your last day of work, it might be considered wages for that week. If you get it after your employment ends, it's typically treated as severance.

Whatever you do, don't lie about the severance on your application. Washington ESD will find out eventually and you could end up with an overpayment situation that's a huge headache to deal with.

I'm in a similar boat - my company is offering voluntary layoffs with severance packages. Been trying to research this stuff for weeks but there's so much conflicting info online.

Update: I decided to take the severance and filed my unemployment claim today. I was completely honest about the severance payment and when I received it. Now I just have to wait for them to process everything.

If your claim gets stuck in adjudication for too long, remember that Claimyr option I mentioned earlier. Really helped me get things moving when I was in limbo.

The important thing is that you're eligible for unemployment based on your work history and reason for separation, not whether you received severance. The severance is just additional income you need to report.

One more tip - keep all your severance paperwork handy in case Washington ESD asks for documentation during the adjudication process. Having everything ready can speed things up.

Honestly the whole unemployment system is so confusing. Why can't they just make it simple - if you lose your job through no fault of your own, you get benefits. Period.

For anyone else reading this thread, the general rule in Washington is that severance doesn't disqualify you from unemployment benefits. The key issues are how it's paid (lump sum vs. periodic payments) and whether there are any work restrictions attached to it.

Just wanted to add that if anyone is dealing with a complicated severance situation, it's worth talking to an employment attorney too. Some will do free consultations.

Thanks everyone for all the helpful info in this thread. I feel much more confident about my decision now.

Final thought - if you end up needing to call Washington ESD about your severance situation and can't get through, definitely check out that Claimyr service I mentioned earlier. Having direct access to an agent who can look at your specific case is invaluable.

I'll post an update once I hear back from Washington ESD about my claim. Hopefully it goes smoothly but we'll see!