NYS - unemployment and severance

April 25, 2023 2:38 AM

I may be laid off soon -- if so, should I file for unemployment (in New York State) if I already know that I would receive severance that would be higher than the maximum weekly benefit?

I (a US citizen) live and work in New York State and have done so continuously, for the same employer, for the last 18 months.

It has been confirmed that layoffs at my employer will be happening shortly. Laid off workers will receive severance pay for a set number of weeks -- in my case, on a weekly basis this severance pay would be greater than the maximum weekly benefit in NYS ($504). As a result, I understand from the dismissal/severance pay FAQ that I would not be eligible for benefits.

That is completely fine, but what is not clear to me is if I should:

(1) Wait until my severance has ended, and (if I am still unemployed) file for unemployment then, or
(2) File for unemployment immediately upon being laid off and simultaneously contact NYS to let them know about my severance pay

(1) seems like the more straightforward option -- I just want to make sure I am not causing myself any harm in any way if I wait to file.

The most relevant question on the FAQ is as follows, but it seems like it's designed for situations where the claimant is not totally sure if they will get severance (not like me, where severance has already been publicly announced for laid-off employees).

What if I’ve lost my job, but I’m still not sure if I will receive dismissal/severance pay, or when I might receive it?

You should file for benefits and let us determine your eligibility. However, you must call the Telephone Claims Center right away if you do begin receiving dismissal/severance pay within 30 days of losing your job. If you don't call us right away, you may receive an overpayment of benefits, which you will need to pay back. You also may be subject to penalties.

posted by anonymous to Work & Money (3 answers total)

On the page you linked, under "If I receive dismissal or severance pay, will it affect my benefits?" it says, "If you are still unemployed when your dismissal or severance pay ends, you should file a claim for benefits. You should do this even if you are not sure if you have enough earnings, or if you filed a claim when you started receiving dismissal or severance pay. We will determine if you are eligible for benefits."

So it sounds like even if you filed while you were receiving severance pay, you'd need to file again when it ran out.
posted by mskyle at 5:02 AM on April 25, 2023 [1 favorite]

I am not an expert on NYS unemployment, but my husband was just in this situation. He waited until his severance ran out, and then filed, and had no problems collecting.
posted by okayokayigive at 5:58 AM on April 25, 2023 [2 favorites]

Hi, by nature of work I know about this, but not for NY specifically. With severance pay counting as work pay, wait until it's all paid out (or if you get it in lump, wait the number of weeks it would have paid for) and file then if you're still unemployed. If they talk about back-dating the request, don't because they'll review for severance pay. This sentence from your link does all the heavy lifting: "If you are still unemployed when your dismissal or severance pay ends, you should file a claim for benefits."
posted by deezil at 6:21 AM on April 25, 2023