Unemployment eligibility w/severance?

[CivilRightsRebel]

What is the name of your state? Michigan

I'm sure our unemployment office could answer this, however it's been ridiculously hard to get through their hotline.

So I thought I'd try here.

Anyhow, I've worked with my company near 10 years. They told several of us that in May we’d be getting laid off. However, they are going to give us a severance package.

My question is can I collect unemployment immediately after my layoff despite the fact I received a severance? (in one lump sum check)

Several friends have told me that I cannot. I just wanted to get this clarified well in advance so there are no surprises.

Thank you for your time.

 

[I AM ALWAYS LIABLE]

What is the name of your state? Michigan

I'm sure our unemployment office could answer this, however it's been ridiculously hard to get through their hotline.

So I thought I'd try here.

Anyhow, I've worked with my company near 10 years. They told several of us that in May we’d be getting laid off. However, they are going to give us a severance package.

My question is can I collect unemployment immediately after my layoff despite the fact I received a severance? (in one lump sum check)

Several friends have told me that I cannot. I just wanted to get this clarified well in advance so there are no surprises.

Thank you for your time.

My response:

Your friends are absolutely correct. A severence package is "income" from your employer. You can, however, make your claim for Unemployment so that you can be on "the rolls", as it were. However, you had also better make damn sure that you declare your severence package. Believe me, if you don't, and you obtain payments from Unemployment, you WILL BE in hot soup with the State - - both criminally and civilly. The Unemployment office WILL find out about your severence.

Then, when your severence money runs out, before you're able to get another job, then you can tell that to the Unemployment office so that your unemployment checks can start rolling in.

IAAL

 

[Beth3]

Whether you can collect UC when receiving severance varies by State. It can also make a considerable difference whether you receive severance in one lump sum or on a salary continuation basis.

You can keep trying the UC office and see if you can get through. Once you are officially unemployed in May, file a UC claim, declare the severance and the method in which it is being paid, and then you'll find out for certain.

I know of at least several States where receiving severance in a lump sum does not bar one from immediately receiving UC benefits although unfortunately I don't know whether or not that includes Michigan.

 

[I AM ALWAYS LIABLE]

My response:

So, basically, Beth you're not disagreeing with me - - right?

IAAL

 

[CivilRightsRebel]

Thanks for the replies. I had a feeling the method of payment would make a difference. Whether or not the severence was one lump or spread out.

If it's one lump, then how or when do they declare it as used up? Figure out my weekly salary, divide by my severence to obtain a timeframe (in weeks or whatnot)?

 

[I AM ALWAYS LIABLE]

Thanks for the replies. I had a feeling the method of payment would make a difference. Whether or not the severence was one lump or spread out.

If it's one lump, then how or when do they declare it as used up? Figure out my weekly salary, divide by my severence to obtain a timeframe (in weeks or whatnot)?

My response:

I KNEW you were going to ask that. And, of course, you answered your own question - - yes, as you noted, that's how the Unemployment office does it.

IAAL

P.S. There's no "whatnot" involved.

 

[Ramoth]

Rebel, IF the severance is paid in a lump sum, it still represents X number of weeks salary, and that is what it may be considered by the friendly folks at UI. Again, if you need to know the answer now, keep trying to get someone at the Unemployment office. They can answer the question best.

 

[Beth3]

IAAL, I would NEVER disagree with you.

CivilRights, when the time comes, simply report the severance, the amount, and the method in which it is being paid to you to the UC office. They'll take it from there.

 

[I AM ALWAYS LIABLE]

IAAL, I would NEVER disagree with you.

CivilRights, when the time comes, simply report the severance, the amount, and the method in which it is being paid to you to the UC office. They'll take it from there.

My response:

You mean I got one right?

Whooopie! Yeah, halleluja!

Hey, it's better than the last guy who wrote, followed my advice, and wound up writing to me from prison!

IAAL

 

[Beth3]

"You mean I got one right?" That JD is finally paying off.

 

[cbg]

Just to add to the confusion, in my state if you received severance in any form, lump sum or salary continuation, you cannot collect UI until the severance "time frame" in exhausted - UNLESS you had to sign a release of claim to get it. If you did, you can receive UI immediately. Even with the severance.