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California - Collect Unemployment Concurrent with Severance California California

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  • California - Collect Unemployment Concurrent with Severance California California

    I found the following text in a Boston Globe article and was wondering if the same applies in California?
    There are two exemptions under which you could possibly collect unemployment insurance benefits while receiving severance:

    ·When severance is paid in a lump sum due to a 'plant closing," which is defined as affecting a minimum of 50 employees who constitute at least 50 percent of the workforce at a given location. When these conditions apply, workers can receive unemployment benefits for the same period of time covered by their severance.

    ·When severance money is paid contingent on the employee signing a release whereby the employee gives up a valuable right -- generally the right to sue the employer for past damages -- in exchange for the severance payment. In these cases, the severance payment is considered payment for signing the release, and therefore does not disqualify an individual from collecting unemployment insurance benefits.
    Last edited by ralphy; 10-04-2006, 03:14 PM. Reason: Correct the title

  • #2
    Severance pay is not wages for unemployment insurance purposes.
    http://www.edd.ca.gov/uibdg/ut46035.htm
    I have been interested in employment rights for some time, however I am not a lawyer. Always consult with an attorney, as they are more knowledgeable.

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    • #3
      Joe916, I read the cite you provided and it really has to do with whether severance pay is reportable as wages for purposes of quarterly wage reporting, and thus taxable (assuming the SUI limit has not yet been met by the employee).

      The OPs question is actually answered in #4 here:
      http://www.edd.ca.gov/uirep/uifaq12.htm#payments
      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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      • #4
        The information provided in the Boston Globe is MA law and is not applicable in CA.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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