Would you file for unemployment?

[corn18]

I negotiated an amicable departure from megacorp. My last day is this Friday. My position is being eliminated. I got a great severance package.

The way my separation letter is worded, I am not receiving severance, so I can file for unemployment. With the latest COVID bill, I would receive $904 a week for 26 weeks. That's a lot of money and would be helpful.

Would you file for unemployment?

 

[dak2018]

I negotiated an amicable departure from megacorp. My last day is this Friday. My position is being eliminated. I got a great severance package.

The way my separation letter is worded, I am not receiving severance, so I can file for unemployment. With the latest COVID bill, I would receive $904 a week for 26 weeks. That's a lot of money and would be helpful.

Would you file for unemployment?

Your position is being eliminated - even if you receive severance, you may be eligible for unemployment. ("may be" because that varies by state.)

You need to understand your job search requirements (if any, again varies by state) and make reasonable job search efforts if that is a requirement. I would let information from your state unemployment office be the guide - if you can comply with the requirements, then heck yes get the benefit.

For reference, my position was eliminated, I received a severance, and also received unemployment in California. The unemployment started after a mandatory two week waiting period, and there was a job search requirement.

But my inquiring mind wants to know - how did you simultaneously receive and not receive severance?

 

[Ready]

Are you planning to look for another job or are you retiring? When I left my last job it was an elimination of my position so I went ahead and applied for unemployment. I looked casually to see if anything else interested me but I think I knew that I was pretty much done. But I saw no reason not to collect unemployment since my position was eliminated.

 

[doneat54]

I struggled with this a little bit when I was "downsized" by my megacorp 4+ years ago. Being let go a month before I was going to retire anyway (and was given a very nice package). I didn't want to game the system when I knew I wasn't really going to be "looking for work". When I learned from a friend who was a CFO at a fairly big company that if/when someone files for unemployment in my state, the company that terminated them was sent a "bill" to cover at least a good part of the costs, I had no problem filing for unemployment knowing that an unethical company that I had zero affinity for might get a bill, I had no problems filing. I used the money to fund a really nice first year retirement travel budget.

 

[RunningBum]

I don't remember what my separation letter said. I had no plans to look for another job and never even looked into taking unemployment. Maybe I was foolish but it seemed right to me for my situation.

 

[skyking1]

as long as you can comply with the job search requirements and somehow not get an offer to refuse, go for it.

 

[corn18]

But my inquiring mind wants to know - how did you simultaneously receive and not receive severance?

The separation letter calls it "consideration". I talked to an employment lawyer and they said that would not be considered severance in OH.

The biggest part of the package is vesting RSU's and options.

 

[Finance Dave]

If you can ethically and legally meet all the requirements on your state's website, then do it.

There is at least one person you have to make sure is ok with it, and that person is easy to find...look in the mirror and you'll see them everyday. If that person looks at you and agrees you've not done anything underhanded, then you're good to go.

Another test is...."would you be ashamed if the news showed up in your local paper?"

 

[Montecfo]

I would not. Never have and it just seems wrong when you have severance.

 

[njhowie]

It's not gaming the system if you meet the requirements to collect unemployment by your states rules.

You may think you don't need the money, morally are not entitled to it, or shouldn't take it because you were going to retire anyway. However, we don't know what will happen down the road. Maybe things don't work out the way you intended and you really do need the money down the road. Well, at that point you can't turn time back and collect what you were once entitled to.

Unemployment rules in many states have been relaxed and expanded due to the pandemic. As an employee, you have been paying in to your states unemployment fund for as long as you've been working. Further, the additional amount being kicked in by the federal government is a cost being borne by all taxpayers, you included.

Bottom line, apply for it, and accept what you are legally entitled to. There's no shame or anything to feel ashamed about, it's simply a step in the system which you have been participating in and are entitled to claim benefits from at this time. Have you been receiving the stimulus payments thus far? It's no different in my mind. Most folks on this site really do/did not "need" them. Did anyone refuse to accept theirs? Highly doubtful.

 

[skyking1]

OP, are you prepared to go to work for one of your required job contacts, if they tender an offer? How does that work?
In my state, you have to turn in your contacts and also answer if you turn down a job offer.
I work in a full referral union and only have to call the hall, but every time I filed for unemployment, I was actually wanting to be working.

 

[Dtail]

I would file for the unemployment. It is just another example of one is entitled to do so and it is legal, why not take advantage of what there is to offer.

 

[latexman]

File for unemployment, be open and honest, and leave it up to the local unemployment jurisdiction with their process and procedures.

If one does not throw the rock into the mango tree, one does not get mango!

 

[Aerides]

My state does not allow it as you have to wait for severance to end. It also requires that I submit proof of actively seeking new employment every single week. So, lie once and every week... not for me.

Check your state requirements. There are not many where it's as simple as file, get checks, profit. I think in most all states you have to show some good faith of attempting to regain employment.

 

[donheff]

I am with the take it if you meet the requirements camp. Lots of people who don't need it will get stimulus checks, you will get unemployment. If you feel it is undeserved, give it to someone or some organization that truly needs it.

 

[The Cosmic Avenger]

I never have, because I have some strange complex that if I can get by without it, I shouldn't take it, as other people need it more. The first time I qualified I was young and poor, but had no kids and was living a very LBYM lifestyle. The second time was recently, when we had plenty of reserves. So I probably would not, and you asked what we would do, but there's no reason for you not to if you're eligible and you're so inclined. One person's decision isn't going to make or break the state UI budget.

 

[EastWest Gal]

If you quit your job, not for cause, you aren't eligible for unemployment benefits. You have to prove you had cause to quit your job, and that you are looking for another. It could be considered fraud if you collect unemployment. It's also stealing from your fellow taxpayers. Don't do it.

 

[donheff]

If you quit your job, not for cause, you aren't eligible for unemployment benefits. You have to prove you had cause to quit your job, and that you are looking for another. It could be considered fraud if you collect unemployment. It's also stealing from your fellow taxpayers. Don't do it.

OP said "My position is being eliminated." He didn't quit and isn't cheating.

 

[Mr._Graybeard]

My state does not allow it as you have to wait for severance to end. It also requires that I submit proof of actively seeking new employment every single week. So, lie once and every week... not for me.

Check your state requirements. There are not many where it's as simple as file, get checks, profit. I think in most all states you have to show some good faith of attempting to regain employment.

That's usually the case with Wisconsin, that you have to document your job search. However, under current conditions that requirement is suspended.

 

[skyking1]

It is amusing that the OP posted this thread, rather than just doing it. Was your spider sense tingling?

 

[Mr._Graybeard]

When I retired HR told me verbally that they would not contest my claim for unemployment benefits ... but I would have had to lie every week about my j*b search. That lie came back to bite some of my former colleagues when the state decided to claw back the payments they received, threatening legal action. Again, in my state the search requirement is suspended for now, and I suspect that's the case elsewhere.

But I was a bit disgusted that my former employer explicitly suggested (nothing in writing, of course) that I game the system. Not shocked, of course -- just disgusted.

 

[jim584672]

I took UI when I got let go. My "search" ended then I retired.

 

[braumeister]

When I retired HR told me verbally that they would not contest my claim for unemployment benefits ... but I would have had to lie every week about my j*b search.

This apparently varies a lot. When my job was eliminated (along with about a third of the company), they told us in writing that they were treating our severance in a way that didn't count as normal severance pay, so we were free to claim unemployment with no worries. It was long ago so I don't remember any more details of it, but it seemed like kind of a nice thing for them to do.

 

[Jerry1]

I would file for the unemployment. It is just another example of one is entitled to do so and it is legal, why not take advantage of what there is to offer.

This is how I felt. My company even said they would not dispute the claim. Seemed to encourage filing. However, when I read the rules from the state, there was a requirement to look for a job. I wasn’t going to take a job and I wasn’t going to lie. So, if you can do it without falsifying anything, then I’d do it.

I’m not sure, but I think I heard that they suspended the job search requirement during COVID, so you may want to look into that.

The other thing I recall is the severance being considered income that needed to be offset against any unemployment. I think I figured I could get around that, but the job search is due was still there.

Also, when I had to decide this, it was a lot less money. Given the amount currently provided, I might try a little harder to fit my square peg in the round hole.

 

[Bigdawg]

6 years ago I was in a situation where I wasn't fired and didn't quit. It was a strange situation as a govenment contractor. I wasn't going to but then decided I would apply for UI. After some back and forth with the govenment team and contractor I started to receive UI. During that time I applied for jobs that I could perform. I applied for two per week as required. What I didn't do was perfect my resume for each submission. I only applied for jobs that were at the very top of my skill set. When UI ran out I took a very good position which I am still at albeit 32 hrs/week. My current contract was up in December. It was extended to April. Two days ago it was extended to June. The lawyers will sort it out in the next two weeks. Most likely the new company will low ball us by 20% in June. If that happens I plan to not accept the new position and apply for UI. Again I will apply for positions at the very top of my skill set. If for some reason I get called for an interview I will attend. If offered the position I will most likely decline and then terminate my UI. You asked.