Question on severance pay (employee, apply, collect, interviewing)

[nomoremondays]

Hello everyone,

I have a question regarding severance pay. I got laid off some time ago but my ex-company is offering 3 months of severance pay (quite generous I feel so thanks for that). They will be paying this bi-weekly. However, I don't like to sit idle and have been looking for jobs. There is a slight possibility right now that I may land something before the next three months(fingers crossed).

My questions are (a) If I start a job before the severance period runs out do I still keep collecting severance or do ex-employers generally cut this off as I have gained new employment again and am not technically unemployed.
(b) If they do keep paying it would essentially mean that there would be a short period where I would be receiving compensation from two places. This is kind of making me paranoid because I have not really told the companies I am interviewing that I have been laid off if they dont ask. But if it comes out in background checks that I have payment from two places what could be the implication?

Thanks you for all your replies. This is my first lay-off so quite confusing and stressful times for me.

Regards

[vacoder]

Originally Posted by nomoremondays

Hello everyone,

I have a question regarding severance pay. I got laid off some time ago but my ex-company is offering 3 months of severance pay (quite generous I feel so thanks for that). They will be paying this bi-weekly. However, I don't like to sit idle and have been looking for jobs. There is a slight possibility right now that I may land something before the next three months(fingers crossed).

My questions are (a) If I start a job before the severance period runs out do I still keep collecting severance or do ex-employers generally cut this off as I have gained new employment again and am not technically unemployed.
(b) If they do keep paying it would essentially mean that there would be a short period where I would be receiving compensation from two places. This is kind of making me paranoid because I have not really told the companies I am interviewing that I have been laid off if they dont ask. But if it comes out in background checks that I have payment from two places what could be the implication?

Thanks you for all your replies. This is my first lay-off so quite confusing and stressful times for me.

Regards

You keep the severance and yes if you get a job and the time period overlaps you get two pay checks. Nothing illegal or unethical about it.

[jaypee]

The severance has nothing to do with your new employment. Enjoy the extra income.

[YAZ]

Depends.

My wife's employer is VERY generous with severance pay; usually 3 months pay for every year of service up to one year's salary.

But.....if the terminated employee finds work within that period, the severance is eliminated.

Another case:

One of my past employers just gave a lump sum in the end. 2 weeks then 1 week for every year of service. Unlimited w/length of service.

So I did have "double pay" for a while.

[sware2cod]

check the paperwork for the severance pay/termination. See if it says anything about getting another job and whether severance stops. If it doesn't say anything about that, you simply collect 2 checks for awhile.

Usually severance has nothing to do with you getting another job. It's not like collecting unemployment compensation.

BTW, in many states, you are eligible for unemployment even while collecting severance. Not sure which ones or of the exact rules. But you can apply for unemlpyent and they will either delay payment until severance ends, or they will start giving you checks immediately.

The is an unemployent forum directly under this one. Ask the question about collecting unemloyment insurance while still getting severance. They will know the answer most likely.

[tomkane]

In NYS, I was laid off because of reduction in workforce and received a lump sum and 12 weeks severance. I soon found another job and collected severance as well during my new employment. My severance has now reached 12 weeks and ended. Can my former employer asked for money back if they find out?

[joe from dayton]

OP: No clause about this in your lay off paperwork?

[LakeLifePA]

Sounds like you need to ask your HR department instead of a bunch of strangers on the Internet that know nothing about your company.

[SDreams404]

Keep collecting.

What if someone the company gave you a lump sum in the amount if two weeks pay and you got a job in 7 days. Would you give them half the money back? No. So why stop taking it?

[Iamlmyj2018]

I have been with my company 18 years.
Cuts are always in March and with the year we came off of, I anticipate I will be going. I took a second job about a month ago, just serving one night a week. Anyway, the typical severance for my position and years of service is 9 months. Do you know if I am jeopardizing the offer of severance at all because of the second job? It's an I-9, so not sure that makes a difference. I'm almost sure it wouldn't but boy would I be very upset with myself if it did.