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NJ & NY -Collecting Unemployment while receiving severance pay

Even though you may be receiving severance pay, you are eligible to collect unemployment from your last day of work. Do not wait until your severance runs out to file your claim. It takes a few weeks from the day you filed to receive any paperwork or a check!

Also, for those of you that are pregnant and recently were laid off or will be getting laid off in the near future....you are also eligible to claim! Just an FYI because I have seen quite a few posts questioning both. If you are unsure just visit your state website! Hope this helps anyone questioning their eligibility!

Re: NJ & NY -Collecting Unemployment while receiving severance pay

  • This is bad advice.

    Laws vary widely by state.  Here in Georgia you absolutely can not collect severance and unemployment at the same time; if you are paid 11 weeks severance, then you can start unemployment benefits 12 weeks after your layoff.

    PLEASE research before you start posting like this!

  • I have never heard that you can get unemployment while receiving severance, and it makes no sense that you could receive it.  I was always told you had to wait for your severance, or vacation pay to be lapsed before you can start to collect unemployment.

    FYI -- I am not in HR, this is just from past experience.  I'm sure states vary.

  • When I filed, they asked my last day of work and my last pay period.  I entered the day my severance would run out as my last pay period.  I still didn't receive any benefits until about 3 weeks after my severance was up.  Maybe she just meant that people should not wait to FILE for unemployment.  Since the state checks the circumstance with your former employer, they would find out about the severance, anyway.  I am glad I filed immediately, or else I would still be waiting.

  • I just checked the post from before, she sited a source for OP's state.  Not sure how much it varies, though....
  • Not true for Minnesota. I filed immediately after I was laid off, but my unemployment did not kick in until a week after my severance was done.
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  • I should have specified...I was reaching out to NY & NJ Nesties...Sorry! I actually htought I was only posting to the South Jersey board. I was laid off, received serverance and I was entitled to UI.  It is good advice for NJ & NY because I have seen several posts questioning the UI.  Here is the proof:

    http://lwd.dol.state.nj.us/labor/ui/content/faq.html

    Q. Should I wait until my severance pay ends to file a claim?

    A. No, because some severance/separation payments do not extend employment. You should file your claim after you stop working full-time. Payments that do not extend employment include severance payments based on years of service with an employer. However, salary continuation through termination and payments in Lieu of Notice, do extend employment. When you file your claim by telephone, the agent will review all separation payments with you before the claim filing process is completed. If you file your claim via the Internet, and it appears that your payment for periods after your last date of work may affect your unemployment benefits, you will be scheduled for an interview with a claims examiner.

     NY http://www.labor.state.ny.us/ui/claimantinfo/beforeyouapplyfaq.shtm#18

    Q: Does receiving separation-related payments, such as severance pay or vacation pay, affect my benefits?

    A: Generally, a claimant is eligible for unemployment insurance benefits while receiving separation-related payments. However, an individual will not be eligible for benefits if he or she continues to receive the full salary and exactly the same benefits that he or she received while working, with the understanding that the salary and benefits will stop if he or she becomes employed elsewhere. The employer?s payment of unused vacation accruals normally does not affect an individual?s eligibility for benefits.

     

  • ROXYLYNN - by the way...I did mention to check out your states website for info. Georgia's website states the following:

     

    Does severance pay have an effect on my benefits? back to top
    You are usually not eligible for unemployment insurance benefits during a period covered by severance pay paid to you by your employer. The only way to know for sure whether severance pay is disqualifying is to file a claim.
  • In Florida you can collect unemployment benefits and also severance pay at the same time. Each state is different so make sure you check their websites if you're unemployed.
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  • It depends -- my severance checks were drawn the same way as the weekly paychecks were -- therefore, I was still in the system and, on paper, I was still employed there until a certain date.

    When the severance was up, I filed: I was eligible only then.

  • Like I stated earlier, every state is different. I was addressing NY & NJ residents. Did you work the weeks you received the severance?? If not, you were not still employed there.

  • image laurainMI:

    I have never heard that you can get unemployment while receiving severance, and it makes no sense that you could receive it.  I was always told you had to wait for your severance, or vacation pay to be lapsed before you can start to collect unemployment.

    FYI -- I am not in HR, this is just from past experience.  I'm sure states vary.

    It absolutely makes sense that you can collect both! You are not working, you were laid off. I am in HR and I wouldn't have posted that if I wasn't 100% sure that in NY & NJ you can collect while receiving severance. The only time you can not is when your employer agrees to pay your severance until you find a new job. Then there would be no need for unemployment.

  • The OP clearly titled this post NY and NJ.  If you don't know that Georgia and Minnesota are not in New York and New jersey then you have a lot more to worry about than just severance pay.
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  • image Bronxgirl73:
    The OP clearly titled this post NY and NJ.  If you don't know that Georgia and Minnesota are not in New York and New jersey then you have a lot more to worry about than just severance pay.

    Before you go around with your snark -- the post was edited to include states.  Originally, she did not clarify NY & NJ.  If she had done that originally, those of us in the other 48 states would have had no reason to question.  Why would I care what goes on there?

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