In Texas say we're offered 8 weeks of severance pay does that mean you have to wait 8 weeks to start receiving unemployment benefits?
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Thanks everybody
You file for unemployment immediately. If your severance is lump sum then you will miss a week of payment. If your paid in installments, you still have to file for unemployment but your benefits won’t begin until the severance is exhausted. You only have a window of a few weeks to apply for unemployment once terminated regardless if you receive severance in lump sum or not.
It’s up to the state as each have their own policies. TX says:
Severance Pay
Severance pay is a sum of money an employee is eligible to receive upon job separation. You may have a company policy to pay severance pay. Texas law prohibits individuals from qualifying for unemployment benefits while receiving certain types of severance pay. We make a decision on whether the severance pay affects the claimant’s benefits.
Your best bet is to just apply and see what they say.
No, but when you receive you severance pay you will have to claim it on your unemployment. I would file for unemployment right now so you are able to start receiving it!
“Severance and Unemployment Benefits
Severance pay can affect unemployment compensation in two ways. If the employer pays the employee severance fee in a lump sum, the employee can apply for unemployment insurance right away as he is no longer on the company's payroll.
However, in some cases, companies issue severance pay over a period of several months. Through that process, the employee is still technically on the payroll, even if he does not go to work. This means he cannot apply for unemployment. Similarly, if an employee has unused vacation time, he is on the payroll as he uses it.”
I didn’t have to wait
Depends on how long you’ve been here
Sounds like it's best to deny the severance seeing as with what was offered I'd make more on unemployment plus the 600 federally.
Yep that’s exactly what it means. Your best scenario to keep that money as a “parting gift” would be to get another job ASAP. Which in this market ain’t happening.