Thread regarding Sears layoffs

Unemployment being challenged

I just found out that Sears is challenging my unemployment claim. I called Illinois Dept of Employ Security and they said it was in reference to my severance pay.

I asked IDES twice if it's Ok to claim UI as well as receiving severance and both times they said yes. In fact when you first file the IDES form says to file even if you're receiving severance. Any idea on what they're challenging?

by
| 3617 views | | 22 replies (last )
Post ID: @OP+O1b49zZ

22 replies (most recent on top)

@O1b49zZ I'm also from Illinois and also was downsized a few months ago.

There is a lot of conflicting language in the severance paperwork. They call it severance, but legally, I'm almost 100% certain, it is continuing pay until your end-date on the paperwork (8-10 weeks, or whatever they gave you).

You may need to wait until your payout is done before you can receive benefits - however you can sure FILE FOR BENEFITS before that happens. You just may not receive any unemployment benefits if your severance income is over some threshold.

Good luck!

by
|
Post ID: @4jjc+O1b49zZ

Congrats, I love government brucracy glad you got it straightened out.

by
|
Post ID: @3sns+O1b49zZ

Ok, issue resolved...I will receive both at the same time.

by
|
Post ID: @3fbf+O1b49zZ

Ohio will let you file, but then you have to wait until your severance pay is finished until you can collect your UI.

They've recently reduced the maximum amount of weeks from 26 to 12, so don't expect a big windfall.

by
|
Post ID: @2qhn+O1b49zZ

File for IL unemployment immediately after being laid off. Severance is not considered employment or disqualifying for IL unemployment, period.

I am a laid off HQ employee, collected IL unemployment and Sears severance without problem.

Go visit your IL unemployment office, talk to someone there, and if need be hire an attorney

by
|
Post ID: @1dsr+O1b49zZ

I'm in Michigan. When a friend lost her job some years ago when Mervyn's (remember them?) closed, Mervyn's paid the severance out weekly so she couldn't get UI as long as that happened.

When I was restructured out of my job in 2006, my former company paid my severance in a lump sum--that single week I couldn't get UI but collected it the rest of the two months I was unemployed.

Every state, every situation, is different is the moral of the story.

OP, good luck with your adjudication hearing.

by
|
Post ID: @1rwr+O1b49zZ

Depends on the state, depends on the exact wording of what you are getting. Sometimes what people commonly call "severance" is worded as "salary continuation" which is more akin to giving you vacation for those weeks. That gets around the unemployment double-dip.

by
|
Post ID: @1sgi+O1b49zZ

IDES will provide free (contracted) legal representation to represent your interests during the adjudication procedure.

It's your right, request it.

SHC frequently (IMO) attempts dodge their UI obligation ... legal representation prevents them from dragging things out.

You will prevail!

There must be some hope that a few IDES applicants will be humiliated or scared away.

by
|
Post ID: @1ljd+O1b49zZ

I started collecting UI right after being let go two yes ago while collecting my severance.

by
|
Post ID: @yrb+O1b49zZ

OP here...

I'm scheduled for an adjudication hearing between IDES, Sears and myself. So this will be straightened out

by
|
Post ID: @ota+O1b49zZ

"Under the Illinois Unemployment Insurance Act, severance payments are not considered wages by the Illinois Department of Employment Security (IDES) and therefore these severance payments do not render the individual ineligible to receive unemployment insurance benefits."

by
|
Post ID: @tbj+O1b49zZ

I want to make this reply clear. I DO NOT live in IL. If the Unemployment office and SHC continues to be uncooperative. I suggest that this person consulant an Attorney who Specialies in unemployment if it is cost effective for you to do.

FYI:I am not a lawyer. Just offering some advice based on what I have read.

by
|
Post ID: @ndp+O1b49zZ

I live and worked for SHC in Illinois. When I was released in February, while receiving my 20+ weeks of severance, I also received Unemployment. So you need to find out from your former HR person at SHC why it is being contested.

by
|
Post ID: @oyw+O1b49zZ

My state unemployment is not retroactive you have to apply when you're approved you have to claim a week of benefits for each week you are unemployed and show them that you are actively seeking employment. I was able to collect unemployment as well as my severance from Kmart at the same time, but everyones situation is different

by
|
Post ID: @dqu+O1b49zZ

All I can say is unemployment s---s the unemployment office tries to make you feel I've just about as low as possible for collecting benefits that are owed to you

by
|
Post ID: @tfx+O1b49zZ

@kon...I am from Illinois and I made a second post after I figured it out. My question will now be is UI retroactive to my last day or do I start from the end of severance and still received 26 weeks of UI.

And I state again, I'd rather be working after my severance runs out than collecting UI, which isn't a sustainable about.

by
|
Post ID: @fyf+O1b49zZ

Thats why they pay you the severance in regular installments, just like your normal check.

by
|
Post ID: @zie+O1b49zZ

I thought I read the same thing. You are essentially still getting paid through Sears for however long they gave you. After that, then you file for unemployment benefits.

by
|
Post ID: @cuo+O1b49zZ

Unless you live in the state of Illinois you shouldn't be commenting on this post every state is different I repeat every state is different for unemployment. Example in my state I was able to claim unemployment and severance at the same time I do not know how Illinois works

by
|
Post ID: @kon+O1b49zZ

Thanks. I think I know what's going on. Sears doesn't want to pay UI so they're hoping I can find work before severance runs out. That way they don't pay the remainder severance and also don't pay any UI.

However I think if severance runs out and I can't find work I get UI retroactive to my last day. So naturally they're trying to push UI back as far as possible.

I guess that's ok, I'd rather have a job than collect UI.

by
|
Post ID: @awz+O1b49zZ

My understanding is you get your severance pay than have to wait I think 3 to 6 months than you can apply for unemployment.

by
|
Post ID: @pmi+O1b49zZ

Post a reply

: