Unemployment Eligibility Info: Tip-of-the-Day #345

I was laid off from my job on December 4th (2018). Because I was provided a severance package, I assumed that I couldn’t file for unemployment until that severance period was completed (i.e., I was paid for 75 days so I thought I couldn’t file until 2/15 or thereabouts). I was under that impression because there was no one to instruct me otherwise (i.e. no one in HR) and the quick Google search I conducted proved confusing. That said, I just had an eligibility call with EDD and learned that my thinking was completely inaccurate. 

If an employee is involuntarily separated from work (e.g. fired or laid off); he or she is eligible for unemployment insurance when his or her employment ends. For UI purposes, the date of employment ending is when the employee is no longer on payroll. It has nothing to do with when notice was given, when the employee was told he or she is terminated, or even when the employee stops reporting to work.

AND, if an employee receives severance and that severance is paid as a lump sum or all at once, then it doesn’t affect his or her end date. The employee is still terminated whenever he or she is taken off payroll. Note: sometimes an employer will pay severance over time by keeping the employee on payroll even though that person has been terminated and this type of severance will prevent the employee from receiving unemployment insurance until the final payment is made. For example, if the person receives six months’ severance by being kept on payroll for six months, then he or she cannot apply for unemployment insurance until after the six month period has ended. But that wasn’t my situation at all! I was paid in one lump sum! Gahhhh.

It sucks that my former company didn’t have an HR person or a reliable member of the “termination team” to make this known. That’s $450 each week for 13 weeks that I could have collected! In other words, $5850! That would MORE than cover my property taxes due 4/15. Sheesh. 

When/if you are laid off friends, dig deep into your sitch because you are more than likely eligible for more than you imagined!

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UPDATE: I filed a claim with EDD that was initially denied but I took the extra step and made a court date. I met with a judge, 1:1 in his chamber, explained my story, and he reversed the denial! Lesson: never walk away from something that could have/should have been yours. Always take things as far as you can before "giving up." I was thrilled with this outcome and now I know how to handle this the next time it comes up! (Here's to hoping it doesn't any time soon!)