Recent Answers to Unemployment Law Questions
Severance agreement and unemployment benefits?
Unemployment
Severance Agreement
California
I recently accepted a severance package from my employer after they eliminated my position. I am concerned about how this severance agreement may affect my ability to receive unemployment benefits and I would like to understand my rights and obligations in this situation. I am hoping to find out if I am still eligible to receive unemployment benefits and, if so, what is the process for filing a claim.
Gagandeep K.
In California, you can apply for, and if eligible, collect unemployment benefits even if you received severance pay. Severance pay is a payment for past work so it is not considered wages for unemployment benefits purposes under certain circumstances. However, the California Employment Development Department will evaluate the amount of unemployment benefits you are eligible to receive and may reduce such benefits by the severance pay you receive. You may consider having an attorney review your severance agreement and answer any additional questions.
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