Unemployment after getting a severance package?

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I live in Michigan. Many years ago, the company I worked for was bought out from"Big Pharma" There were only 30 reps nationwide. Most of my collegues were able to collect severence and unemploymnet immediately. In michigan, the top amount is $360 and you cannot collect both. YOu must wait until severence is over regardless if you do lump sum or payments. It sucks!
 




Unemployment/severance/financial decisions...what next?

DON'T leave your 401(k) money that you have worked so hard for with your company! Contact 815/603-2279 so that you can have some help as to what to do. Also, if you like the high side of the market but want to avoid the risk there is a guaranteed way not to lose what you have put in. Call today so that we can help you in these trying times.
 


Anonymous said:
everyone is talking about receiving unemploment for being laid off but what if you are fired for poor numbers. Do you still get the $$
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Probably not, depends on state law (usually unemployment comp is not paid on a resignation or dismissal for cause), but hey, I'd file anyway. If your former employer does not contest the filing, you probably will get the check.

But don't count on it to live on easy street. I got it in my state a couple years back ... maximum paid was $350/week and I got to the annual maximum in six months.
 


Re: Unemployment/severance/financial decisions...what next?

Anonymous said:
DON'T leave your 401(k) money that you have worked so hard for with your company! Contact 815/603-2279 so that you can have some help as to what to do. Also, if you like the high side of the market but want to avoid the risk there is a guaranteed way not to lose what you have put in. Call today so that we can help you in these trying times.
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Good advice ... right up to the sales pitch, I guess. Just depends how much you want to pay in commissions and fees for "guaranteed" returns. They're guaranteed as long as the folks that make the guarantee can produce the returns. And honestly, with what we've seen in the last few months (and will continue to be suprised in the next several years), a "guarantee" isn't worth what is was in the past.
 


Just got "down-sized" after 31 years with same mid-sized company. Applied for unemployment in Florida on-line and was not asked any questions about severance. Several others in the company have applied for and received unemployment with generous severance packages (up to 56 weeks).
 


Anonymous said:
Just got "down-sized" after 31 years with same mid-sized company. Applied for unemployment in Florida on-line and was not asked any questions about severance. Several others in the company have applied for and received unemployment with generous severance packages (up to 56 weeks).
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Moral of the story is, if they don't ask, don't tell. (My state, Texas, required me to go through the severance package first; but if you get the package in a lump sum, you can probably file right away.)

All I know is that if you don't file for it, you have a 100% chance of not getting it.
 


In CT I was asked about a severance package, but I was eligible for unemployment immediately because my severance was contingent on signing an "agreement" upon my departure from the company.
 


I received 5 months severance and unemployment from the beginning. An unemployment deputy sets up an appointment to call you and then your employer on a conference call. My employer did not pick up the phone when the deputy called. My company did not respond to her phone call in by the end of that day either so it was uncontested and I got unemployment money right away.
 


I became Laid off the first of November, reported everything like I was supposed to including severance pay (1 months worth -160 hours) and still am not qualifed to get unemployment. I am almost certain it is because my employer stated in the lay off letter that the money covers a period from November to December and I am pretty sure I will get it when that time period runs out. That seems pretty crappy that the employer who is letting you go, can say that the lump money covers a period for which you are no longer employed and it prevents you from getting money that will help you along the way of finding a new job. Years ago when I got laid off the severance pay did not affect unemployment benefits. I have been trying to find where the law states how severance is issued as how it affects your UI benefits. You can not get a hold of a person in UI here in AZ to even ask questions, their phone system says they are overloaded with calls and regret that they can not take your call says to call back between 1-3 then hangs up, call back between 1-3 and the same thing.
 


If I don't understand what I signed for my severance package, should I call HR and have them explain it to me? I don't believe I will be able to claim unemployment until my last severance check.
 


Each state has its own policy on severance,vacation pay etc. with regards to unemployment bens. Where I am, I have to wait until the # of weeks runs out that I got severance for (i.e. 16 weeks). Once that time goes by, I'll be able to get unemployment.
I can't get them during same 'period' but you might be able to.
 


Anonymous said:
If I don't understand what I signed for my severance package, should I call HR and have them explain it to me? I don't believe I will be able to claim unemployment until my last severance check.
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I sure hope NOBODY "signed a severance package" and expects HR to "explain it to me."

HR, especially when the company is turning you loose, sure does not have your best interests in mind.

Spend a few bucks and an hour or so with an attorney (an employment law attorney would be best, but probably most general practioners would work) and have YOUR ATTORNEY explain it to you.

Chances are, you'll have to wait until severance is done before you file for unemployment. But check. All the state folks can say is no, and maybe your state laws allow them to say yes.
 


In most states Severance has no effect on the eligability of Unemployment. Check with your state unemployment office for info ( it should be on their web site). However, it sounds like your employer is trying to clasify this as Wages in Lieu of Pay instead of Severance. If you had to sign a waver its Severance. It does not matter if its paid in a lump sum or over a period of time)
 


Please check with your state unemployment office as soon as you are laid off, after your last day of work. DO NOT in any state waste money asking an attorney. They know very little about unemployment statutes. The people at the local office know your own state's laws. Sometimes, in some states, you have to wait till the severance is gone. In many, you can sign up immediately, regardless of severance or wages in lieu of notice being paid.

Income has absolutely no bearing on unemployment eligibility, as long as you are able and available for work. Social security retirement has no effect, as long as you do not remove yourself from the labor force by saying, "I won't take another job, I'm retired!" Pensions must be looked at individually, it will be determined if you took retirement or were laid off as to your eligibility, contribution of employee is a factor in the countability of the pension. In any case, please make the free inquiries to the people who actually know, the people who work in your state's unemployment system. Do not listen to anyone else, as many people make terrible mistakes and cheat themselves out of many dollars they should have gotten because of swapping ingorance with other people who do not know either. Even if you think you won't qualify, ASK. If you are fired from a job, or as the guy said, "let go for low numbers..." please file your claim. It costs nothing, there is not downside. IF you can prove that you were let go although you did your best and tried your hardest, or were fired for no good reason, you probably will be able to receive unemployment. Even if the employer or the company Human Resources division tells you you will not be able to draw, DO NOT listen to them, call the local unemployment office and ask. File a claim anyhow.

As people commented, unemployment is mighty little money doled out week by week until it runs out. You cannot save it back until you need it, or give it back to the taxpayers or give it to someone who needs it worse, as it is taken from the employer for you personally, and if you do not use it, no one else will benefit. It is not welfare, does not have anything to do with how poor you are. It is very finite, it will end after a definite time, whether you have found a new job or not.

I worked for many years in the system. Please, call them and ask about your particular situation BEFORE you discuss with others and reach some consensus.
 


Anonymous said:
Please check with your state unemployment office as soon as you are laid off, after your last day of work. DO NOT in any state waste money asking an attorney. They know very little about unemployment statutes. The people at the local office know your own state's laws. Sometimes, in some states, you have to wait till the severance is gone. In many, you can sign up immediately, regardless of severance or wages in lieu of notice being paid.

Income has absolutely no bearing on unemployment eligibility, as long as you are able and available for work. Social security retirement has no effect, as long as you do not remove yourself from the labor force by saying, "I won't take another job, I'm retired!" Pensions must be looked at individually, it will be determined if you took retirement or were laid off as to your eligibility, contribution of employee is a factor in the countability of the pension. In any case, please make the free inquiries to the people who actually know, the people who work in your state's unemployment system. Do not listen to anyone else, as many people make terrible mistakes and cheat themselves out of many dollars they should have gotten because of swapping ingorance with other people who do not know either. Even if you think you won't qualify, ASK. If you are fired from a job, or as the guy said, "let go for low numbers..." please file your claim. It costs nothing, there is not downside. IF you can prove that you were let go although you did your best and tried your hardest, or were fired for no good reason, you probably will be able to receive unemployment. Even if the employer or the company Human Resources division tells you you will not be able to draw, DO NOT listen to them, call the local unemployment office and ask. File a claim anyhow.

As people commented, unemployment is mighty little money doled out week by week until it runs out. You cannot save it back until you need it, or give it back to the taxpayers or give it to someone who needs it worse, as it is taken from the employer for you personally, and if you do not use it, no one else will benefit. It is not welfare, does not have anything to do with how poor you are. It is very finite, it will end after a definite time, whether you have found a new job or not.

I worked for many years in the system. Please, call them and ask about your particular situation BEFORE you discuss with others and reach some consensus.
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Thanks for the advice.

But I would add if a company severance package is part of the mix, I would certainly have an attorney review the package first so that the agreement between your former employer and you is structured in such a way that it would not impede any claim for unemployment benefits.
 


If you choose to accept a termination due to workforce reduction, and recieve a severence pkg in the state of texas, do i get unemployement benefits? Even though they told me I can become part-time?
 




Great answer! My question: What if you cannot disclose the severance pay at the time of filing for UI (in California) because you have hired an attorney, and now two months after filing for UI, you have agreed upon a severance amount. Do I still report it? Is it still considered as NOT wages?



Anonymous said:
Wow, lots of false information here...

In CA, severance packages have absolutely nothing to do with being eligible or not for unemployment benefits.

From CA's EDD website:

How does severance pay affect my eligibility to receive unemployment insurance benefits?

Severance pay is not deducted from unemployment insurance benefits and does not affect your eligibility to receive benefits. The method of payment, such as a lump sum payment or payments paid to you at regular pay period intervals does not change the nature of the payment. However, you must report severance pay at the time you file your unemployment insurance claim.
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Please folks, if you dont know the exact answer, then don't answer at all...
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New question.....

If I am about to be laid off and am going to start my own buisness, do I qualify for umemployment if there is no income generated in the buisness for 3 months?
 



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