Washington ESD unemployment eligibility if I get a severance package - confused about the rules

Yes, you can generally receive both severance and unemployment benefits in Washington, but there are some important details. Washington ESD doesn't consider severance pay as wages for unemployment purposes in most cases. The key factor is whether your severance is considered 'wages in lieu of notice' or a true severance package. If it's just a lump sum severance with no requirement to not work elsewhere, you should be fine to collect UI benefits.

I went through this exact situation last year. Got a $6k severance and was still able to collect full unemployment benefits. The important thing is that Washington ESD looks at whether the severance is considered 'dismissal pay' versus regular wages. Since you're being laid off and not quitting, you should be good.

Just want to add that if you're having trouble getting through to Washington ESD to clarify this, I recently discovered Claimyr.com which helped me reach an actual agent. They have a service that calls for you and gets you connected - there's even a demo video at https://youtu.be/7DieNd3C7zQ showing how it works. Might be worth checking out if you need to speak with someone directly about your specific situation.

wait hold up - i thought ANY income would disqualify you from unemployment?? this is confusing

Be very careful about this. I know someone who got in trouble for not reporting their severance properly. Washington ESD can be really strict about this stuff and if they find out later you didn't disclose everything, they'll hit you with an overpayment demand. Make sure you document everything when you file your claim.

The Washington ESD website has some information about this under their 'Types of Income' section, but it's pretty confusing to read through. Basically, if the severance is NOT considered wages for the period after your employment ends, then it shouldn't affect your UI eligibility. Most standard severance packages fall into this category.

This happened to my sister last year. She got severance AND unemployment benefits with no issues. Washington ESD didn't even question it during her phone interview. Just be honest about everything and you should be fine.

ugh the whole UI system is so confusing. why can't they just make this stuff clear on their website instead of making us guess

I work in HR and deal with this question a lot. In Washington state, typical severance packages don't disqualify you from unemployment benefits. The key distinction is that severance is usually paid as a dismissal benefit, not as wages for future work periods. Just make sure your severance agreement doesn't include any non-compete clauses or requirements that might affect your job search - those could potentially impact your benefits.

Take the severance AND file for unemployment! I did this when I got laid off from my tech job. Washington ESD processed my claim normally and I received both. The severance helped cover immediate expenses while the UI benefits provided ongoing support during my job search. Just be completely transparent when filing your claim.

Be aware that even though severance doesn't disqualify you from UI benefits, it might affect the timing of when your benefits start. Some types of severance are considered to cover a specific period after termination. Check with Washington ESD to make sure you understand how your specific package is classified.

I'm going through something similar right now. Company offered severance but I'm worried about messing up my unemployment claim. Has anyone used that Claimyr service someone mentioned earlier? I really need to talk to someone at Washington ESD but the phones are impossible.

One thing to keep in mind - even though severance generally doesn't affect UI eligibility, you still need to actively search for work and meet all the other requirements. Don't let having severance money make you complacent about the job search requirements.

just want to say this thread has been super helpful! I'm in a similar boat and was stressing about whether to take the severance. Sounds like the consensus is to take it AND file for unemployment as long as you're honest about everything.

For what it's worth, I've never heard of anyone being denied unemployment benefits solely because they received severance. The issues usually come up when people don't report it properly or when there are other complicating factors like voluntary separation agreements.

Washington ESD actually has a phone line specifically for questions about income reporting, but good luck getting through to them. I tried calling for weeks about a similar question. That's actually how I found out about Claimyr - saw it mentioned in another forum and decided to try it. Worked way better than trying to call myself.

Bottom line - take the severance, file for unemployment, be honest about both. Washington state is generally pretty reasonable about this stuff compared to some other states. You're dealing with a layoff situation which is exactly what unemployment benefits are designed for.

I went through this exact same situation about 6 months ago when my company did layoffs. I was so worried about messing something up, but it turned out to be much more straightforward than I expected. I received a $12,000 severance package and was still able to collect full unemployment benefits from Washington ESD. The key thing that helped me was calling them directly (eventually got through after many attempts) and just being completely upfront about the severance during my initial interview. The representative told me that as long as it's a true severance payment and not wages for a specific notice period, it doesn't affect eligibility. I'd recommend documenting everything about your severance agreement and being prepared to explain the details when you file. Washington ESD seems to handle these situations pretty routinely - you're definitely not the first person to be in this spot!