I am receiving severance payment over 15 weeks in exchange for signing a waiver of my rights to sue. My unemployment payout is being reduced by 15 weeks, as a result. The notice of decision from the State of Colorado cites 8-73-110 (1) (a) (III), (i) (B) & (1.2). Before I signed, I was explicitly told by my employer's HR representative that signing the agreement would not impact my ability to collect unemployment. Is her statement relevant? What are my best chances to appeal this decision?

This is not uncommon. Unemployment is a form of income replacement when you have no income coming in. The fact that you have severance for 15 weeks means that you have income for that period of time. This has nothing to do with your separation paperwork. This is normal practice when determining UC benefits.

Rob -- the decision from Colorado states that the maximum payable amount for my claim has been reduced (not just postponed). I wouldn't be too concerned if this was a question of collecting my benefits later, but according to the notice I received, the payout is to be reduced by over half. How best to appeal?

Unfortunately I have my references at work and I'm home for the weekend.

What you describe is not uncommon. In CO you only have 15 business days to file an appeal. Please keep this in mind because if you miss your deadline, you may not be able to file. The worst case scenario is that your appeal will be denied. My recommendation is to contact the Colorado Department of Labor and Employment. They may be able to better explain your unemployment benefits determination. There contact information is listed below:

Colorado Department of Labor and Employment
Unemployment Insurance Integrity, Benefit Payment Control
P.O. Box 8789
Denver, CO 80201-8789
303-318-9035 (Denver-metro area)
1-877-464-4622 (outside Denver-metro area)
Fax: 303-318-9037
E-mail: UIBPC.CDLE@state.co.us

Useful link:
http://www.coworkforce.com/UIB/Integrity/BPC.asp

The applicable sectiuon of CO UI law is 8-73-110 (1)(a)(III)(b), which, in pertinent part, states that "[t]he status of such remuneration as a severance allowance shall not be affected by ... whether the remuneration is included in a separation agreement that includes other settlement considerations that are not severance allowances."

I interpret this to mean that a release of claims does not preclude this severance from constituting remuneration, thereby disqualifying income under CO law. Some states, inlcuding mine (MA), do permit "double-dipping" where severance is contingent upon a release of claims. But, unless there is caselaw that suggests otherwise, CO does not permit a claimant to collect UI and severance.


http://www.coworkforce.com/UIB/2005%20CESA/2005%20CESA%20Final.pdf