Allocation of Severance pay

I am receiving Severance Pay from my employer over a period of weeks. I am being denied unemployment benefits because of the severance pay. When I questioned the Unemployment office the said that my employer did not respond to their request on how my severance pay was 'allocated' so the unemployment office allocated it according to law. This same Customer Rep from the unemployment office said that if my severance was allocated as of my last day worked then I would still be able to receive benefits along with the severance. But my employer didn't respond to their inquiry. I contacted my employer and they said you can not receive severance and unemployment at the same time. Can you tell me if I should persue this anymore or if it correct that I'm not receiving benefits because I'm receiving severance over a period of weeks? Does it matter how severance is allocated ? Thank you for your time.

1 answer  |  asked Apr 22, 2009 7:36 PM [EST]  |  applies to Ohio

Answers (1)

Neil Klingshirn
Unemployment will not pay you during the weeks you receive severance.

The basic rule is that, if you receive severance during a week in which you are entitled to receive unemployment compensation, Jobs and Family Services (JFS) will reduce the amount of unemployment compensation dollar for dollar by the amount of severance that you receive. In your case, since you are receiving severance payments over a period of weeks, JFS will reduce your unemployment compensation in the amount of the severance payments.

If you had received your severance in a lump sum, then JFS would not have paid you unemployment compensation in the week that you received it. In addition, JFS would have asked to see the severance agreement and, if the severance agreement describes the severance amount as covering a period of time (e.g., "$X, as six weeks of severance pay"), then JFS will treat the lump sum as being paid during that period of time, reducing your benefits accordingly.



posted by Neil Klingshirn  |  Apr 23, 2009 10:19 AM [EST]

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