company closed under warn act but am told that NYS Unemployment benefits won't be paid till my lump sum payout ends. Is that legal?

since I was laid off due to site closing and given a lump sum payment, NY Unemployment denied my claim until after money runs out. I thought payments under warn act did not affect unemployment eligibility

1 answer  |  asked May 21, 2016 6:42 PM [EST]  |  applies to New York

Answers (1)

V Jonas Urba
The worker adjustment and retraining act is designed to make certain that employees know about unemployment benefits qualification in advance with the goal of reducing the time that any worker actually needs benefits.

The federal government's discontinuance of extended unemployment benefits' subsidies caused NY and many other states to re-write the rules for qualifying which became effective December 1, 2014. Had you received severance pay before that date you almost certainly would have been been approved for unemployment benefits upon losing your job without exhausting the dismissal pay period. Both federal and state budget crises required legislatures to tighten their belts at federal and state levels.

The WARN Act does not change the fact that severance pay is considered dismissal pay unless 30 days passes between an employee's last work day and the employee's first dismissal payment.

Waiting is not illegal. It's the new law here and in many other states. The NYS DOL has either confirmed this to you already or, if you call them to confirm that I am not making this up, should do so.

posted by V Jonas Urba  |  May 22, 2016 3:38 PM [EST]

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