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  1. #1
    Join Date
    Feb 2009
    Posts
    4

    Lightbulb Collecting Severance Pay and Unemployment Benefits

    In the State of Arizona, if provisions have been made in a Severance Agreement, would a laid-off employee be able to collect Unemployment Insurance Benefits at the same time of receiving monthly severance pay (for a few months) after filing the intial unemployment claim?

    If any of you know the answer to this, I would appreciate your knowledge.

    Thanks in advance.

  2. #2
    Join Date
    Feb 2007
    Location
    Calif
    Posts
    18,011

    Default Re: Collecting Severance Pay and Unemployment Benefits - AZ

    I realize this board says 'workers compenation', but that means where there has been a work related injury/illness...your question is in relationship to 'compensation'...

    So, when you are receiving a severence pay package, that is money in lieu of wages... you should definately file for UI benefits, but at the same time expect a denial, or offset to the period of weeks you are receiving the money in the severence pkg.

    You can't expect to receive money for 'wage replacement/severence' and unemployment benefits for the same time periods....

    Check with your EDD/employment developement dept representatives, as state laws differ in some of these benefits...

    UI benefit information for AZ is here http://az.gov/webapp/portal/topic.jsp?id=1162

  3. #3
    Join Date
    Feb 2009
    Posts
    4

    Default Re: Collecting Severance Pay and Unemployment Benefits - AZ

    I am currently in the same situation. I am receiving severance pay and collecting unemployment. I live in Pennsylvania so the laws may be different but I was told by the UC office that severance pay is not considered "time worked" so it does not effect your unemployment. If you don't need the unemployment at this time it would make more sense to wait as long as you can to file. Those weeks would extend your unemployment.

    Not legal advise but this is just from my own experience.

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