How does severance pay affect unemployement insurance benefits from EDD?

What is the name of your state? California

I just got terminated or laid off. The company has offered me a severance pay if I sign a "settlement agreement and release of all claims" forms.

I read the agreement and I am not planning on suing....I just want to get my sevarance and go on my way.

There is a clause that states:
...Employee acknowledges that Employer has paid in full all compensation, wages and other monies and benefits due and owing to her by Employer.

If I sign this does this mean I am not eligible to receive unemployment benefits when I file with the EDD?

I am negotiating my sevarance pay at this time, should I tell my ex employer to include in there a clause that states that I will be able to receive unemployment insurance benefits?

Please advise.

Thank you.

Your employer does not decide whether you will receive unemployment benefits. That is a matter between you and the State. You certainly may ask the employer to include a statement in the severance agreement that they won't challenge your eligibility for UC benefits though.

Each State varies but in the majority of instances if you are receiving severance pay on a salary continuation basis, then you won't be eligible during that time. If you are still unemployed when your severance is exhausted, you will then be eligible to receive UC benefits.

In a few States (and I don't know whether CA is one of them), severance and UC benefits may be received concurrently but in the majority they cannot.

You cannot waive your right to unemployment. Even if your employer intended the letter to include UC, (which I seriously doubt - the language you mention is pretty standard and reflects compensation that is paid to you by the EMPLOYER, not the state) it would almost certainly not be enforceable.

Thank you for your advice.

My severance will not be paid in a continuous basis. It will be paid in a lump sum.

I will play it safe and have them include in the agreement that they will not challenge my eligibility for unemployment benefits.

Thanks again.

Just a quick caution.

You can ASK them to include such a clause. You cannot DEMAND it.

Even if they refuse, you can still apply for benefits and it should not have any affect on your severance.

In some States, severance paid in a lump sum will not affect your ability to collect UC benefits (assuming there is no valid reason to deny benefits such as that you were discharged for willful misconduct.)

What you need to do is apply for UC benefits the first week you are no longer employed. The State will figure out the rest.