I can only speak for California law but if you get displaced you are eligible for unemployment income. The package you receive is for past work and not considered income. Just found this out.
9 replies (most recent on top)
You can in NY as well. HOW they pay the severance (lump sum vs pay continuation) is not relevant at all. I did so in NY before moving to NC where you can not collect unemployment while on separation pay. WF pays this way to keep people from filing for unemployment after a lump sum payment. Unemployment rates WF pays are based on the amount of claims made. That's why once you get a new job they are more than willing to pay in lump sum to discontinue their benefits contributions. Most businesses do the same.
Severance is not considered wages, and therefore does not impact eligibility for unemployment benefits
Yes you can collect unemployment while being paid severance in California. Cal resident here and I have done it.
Yes you can collect both. Been there done that. Twice
You CAN'T double dip simultaneously in CA. The way WF doles out severance sucks. It's paid on WF's payroll schedule..In CA, you have to wait until AFTER severance payout is complete before you're able to file and collect unemployment benefits (after EDD's mandatory waiting period).
If WF paid it in a lump sum (which they don't), you could have started collecting unemployment benefits ASAP.
The only way to get lump sum severance layout is if you find a job at a different company during severance period and request lump sum payout. If you accept a job back at WF during that period, of course the severance ends. And in both those scenarios, you would not be able to start collecting unemployment in CA.
Same as OR!
OP here. Yes, you can collect severance and unemployment from EDD in CA.
Do you mean you can collect severance and unemployment?
Please explain further. Are you referring to unemployment insurance through EDD? If so, I thought it's well known that it isn't severance.