Does EEOC settlement affect Unemployment Insurance

[Connor]

What is the name of your state (only U.S. law)? North Carolina

I receive unemployment insurance benefits as I lost my job wrongfully.

The EEOC is in the process of settling with my former employer for an amount of $10 000

They will be taking out payroll and taxes from this amount.

My question is: If I accept this settlement, will it affect my current unemployment benefits?

Should I have them post-date the check to maximize my benefits.

Any advice you have would be much appreciated.

 

[commentator]

It will certainly not be reported as wages by you on your regular weekly certification for benefits. You did not do any work for it. Forget "postdating the check" or anything like that. My best suggestion is, right now, call and ask someone in the unemployment office. There will be a telephone number or email address somewhere not for people to file a claim, but to answer questions and such. Write down who you talked to and what they tell you. This will probably be the U.I technical support section.

If you do not report it, there might be an issue if this is considered back wages or something and reported as such by your employer on their quarterly reporting. This would flag it in the system as your having received benefits while receiving pay from the company. This would come up much later, and if they have on record your inquiry about the settlement and its disposition, it will not result in your being charged with an overpayment many months from now.

This will not be because it is considered income, or because you now have this money and don't "need" your unemployment. As we have said many times here, receiving unemployment will NOT be based on your income or circumstances as long as you meet the work criteria.

You would definitely not report it on your weekly certification as work you did for wages the week you received it, but just to keep yourself clean and clear of any future issues or questions, call and ask the unemployment people in North Carolina. They will probably take a statement about the nature of this settlement and give you a decision on what you should do right now. Your goal is to work in tandem with the unemployment office, not keep them from knowing something that might affect your claim.

 

[commentator]

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