Can I receive unemployment while receiving a severance payment?

[wartrace]

I am supposed to be let go in May and will get eighteen weeks of severance pay. Am I eligible to file for unemployment right after leaving the job or do I have to wait until the severance runs out. I couldn't find an answer on my state unemployment web site (Tennessee). It seems to me that I would not be receiving that money as a result of "employment". Any ideas?

[scheming daemons]

1. I was wondering this also.... I believe you can get both at the same time

[Donnachaidh]

2. no -- it's considered income

Doesn't matter *what* it came from - it's CASH coming in.

If that severance goes over the amount you would be getting for unemployment, you won't get the unemployment.

[SoCalNative]

8. In California you can

I got a 6 month's salary severance in a lump sum payout and was also able to collect unemployment during that time.

[leftynyc]

20. In New York you can

I had to look that up 7 years ago and I was able to collect severance and unemployment.

[Kalyke]

3. I received unemployment in Tennessee even with severance pay.

But that was several years ago.

[Baikonour]

4. I sincerely doubt it. nt

[notadmblnd]

5. yes.

I received unemployment. My severance was a one time payment via check. It has no bearing on your unemployment benefits, at least in the state of Michigan.

[DemInBuckhead]

6. I believe you can take unemployment after your severence pay ends

So if you were given, say, eight weeks of severence, you may take unemployment but not until the eight weeks of severence pay have ended.

[amerikat]

7. I had to wait until severance ran out. NY

I think you can file while you are receiving severance so that UI kicks in right away once the severance is done.

[Warpy]

9. It depends on the state, so call the unemployment office

to find out what the policy is in your state.

Just be aware that you'll be running out the clock on your unemployment benefits if you do so, that you'll be left at the end of a too short insurance period with no severance and no unemployment.

[bigscott]

10. a colleague of mine and I

were both laid off (in CT) about 5 years ago - she was allowed to collect unemployment while gettign severance and I was not. I appealed twice and lost - she collected both until she found a new job a few months later

[DemSigns]

11. Yes

You are unemployed so you can get unemployment benefits.

[slackmaster]

12. I don't know about your state, but in California you can...

But I believe you have to receive your severence in a lump sum.

[Anywho6]

13. When someone I knew in CA was laid off...

...several years ago, they received one big severance check (in addition to vacation pay) when they left. The HR department actually instructed the person to answer "No" to the severance and vacation questions so that unemployment could start immediately. They did what HR suggested and had no problems. This probably could not have been done had the severance payments been over a period of time.

Best of luck to you. I was laid off in July of last year and I'm already using the Federal extended UI benefits because I can't find anything.

[Tab]

14. It depends on the state, but generally no

It's better to get a lump sum and get it over with, so you can then apply. If they agree to do something like pay you for four more weeks even though they want you out, then you can't do anything until those four weeks are over.

[tcfrogs]

15. Yes

The fact that you're receiving severance pay makes no difference. Your employment is terminated. When you are let go in May, and if you don't find another job, file immediately.

A little disclaimer: I don't know the Tennessee laws, but am familiar with about 20 other states' laws. I don't know of a single one that doesn't allow unemployment while you are receiving severance pay.

EDIT - The worst thing that could happen is the state would decline your application for unemployment benefits. It can't hurt to at least apply.

Good luck on the job hunt, sorry to hear about the layoff.

[skeewee08]

16. Yes, when my husband plant closed(Dayton) in 2006 he got his

unemployment and when he got his severance pay he had to report that income for that week. So yes you can.

[ogneopasno]

17. Unemployment kicks in after your severance is done.

[dflprincess]

18. The law may vary from state to state

In Minnesota you can still file right a way but you won't start receiving unemployment until the serverance period runs out.

[Ilsa]

19. Your employer's HR dept should know the answer.

Back in 1993 in Texas, I received a lump sum (my choice) severance versus payments, and I still collected unemployment. At that time, I could have also received the severance as payments and UC.

[prolesunited]

21. From this thread, the law obviously varies

But I think in less progressive states, the answer would be no because the state would hope you find a job before your severance runs out. Lump sum or not, they'll often divide it out by your base rate and it will be that many weeks before you are eligible.

What I would do in any case is to file immediately so that when you are eligible to collect, all of your paperwork is in order. States are backlogged and initial claims are taking longer to process. Also, if there is any glitch, you'll have time to straighten it out. That's what I did, and after my severance ran out, I got my first check immediately.

Who knows, maybe you can get a new job before you're laid off. Peg the start date after your layoff and pocket all that money.

[B Calm]

22. I believe that is income you have to report. Your unemployment

compensation will probably be delayed.

[Blue_Tires]

23. I think you can in Virginia...not sure

but you better check with other Tennesseeans

[backscatter712]

24. You'll probably get your severance pay as one big check.

Declare it when you file for unemployment, and I suppose it depends on the rules, but you might get a bit of delay before your unemployment payments kick in.