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Old 03-13-2009, 04:21 PM
 
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My job is offering a voluntary exit program due to economic conditions with a lump sum..will i still be able to collect unemployment in the state of nj?
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Old 03-14-2009, 10:30 AM
 
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Quote:
Originally Posted by motana7 View Post
My job is offering a voluntary exit program due to economic conditions with a lump sum..will i still be able to collect unemployment in the state of nj?

Possibly, Your severance will not effect your unemployent, only possibly delay it.

Based on this internet site it says that N.J. does not allow benefits to be paid, anymore if lay off was part of a buyout plan.

See: >>
Unemployment Compensation Benefits No Longer Available for Employees who Voluntarily Leave Their Employment to Participate in Buyout Plans


On August 1, 2007, the Superior Court of New Jersey, Appellate Division, invalidated a New Jersey Department of Labor regulation, which had provided that employees who voluntarily leave their employment to participate in ''a written voluntary layoff and/or early retirement incentive policy or program'' were also qualified to receive unemployment compensation benefits. The Appellate Division found that the regulation contravened legislative policies underlying the Unemployment Compensation Act (Act), and was inconsistent with the Supreme Court's interpretation of the Act.
To read this Alert in its entirety, please click here. For more information, contact Karen A. Confoy at 609.989.5012 or kconfoy@sternslaw.com or Erica S. Helms at 609.989.5062 or ehelms@sternslaw.com.

>>>>>>>>>>>>
http://www.sternslaw.com/Uploads/emp...ugust_2007.pdf

So, I would ask your employer and your State governement. Your regular u.c. employee will more than likely not know the answer, but their manager probably will.

I know that some in/voluntary layoffs are eligible for u.c. and some are not. The answer, unfortunately depends on YOUR state and Your particular package.

good luck

Last edited by gea12345; 03-14-2009 at 11:43 AM..
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Old 03-14-2009, 10:42 AM
 
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Quote:
Originally Posted by motana7 View Post
My job is offering a voluntary exit program due to economic conditions with a lump sum..will i still be able to collect unemployment in the state of nj?
gea, I'm not so sure. I'd check with the NJ UI folks. I'm unsure how the "voluntary" aspect plays out. However, if that's not an issue, you should apply for UI immediately.
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Old 03-14-2009, 02:42 PM
 
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Well, if anyone has grown fond of unemployment law over the last few months, then Maryland has a wonderful unemployment law site.... absolutely amazing...in my opinion...for a state to put so much work into it. It is legal and readable and gives a foundation in how unemployment compensation decisions are decided.

https://www.dllr.state.md.us/appeals/decisions/index.shtm (broken link)

And there buy out law is interestingly different than New Jersey's appears to be:

. "Buy-Out" Offers and Voluntary Layoffs
The employer decided that a definite number of employees were going to be laid off and their jobs eliminated. Rather than make an arbitrary decision on its own, the employer decided to give monetary inducements to encourage people to voluntarily accept a layoff. The claimants really didn't have a choice, since their jobs were eliminated. There were very few other jobs within the company to which they could transfer, particularly within the local area. The employer increased the inducement by arranging it so that the longer the employee stayed on and thought about the severance package, the less money he would receive. Each employee knew or was led to believe that eventually he would be laid off, with or without the severance package, which induced him to accept the layoff sooner, rather than later. This is not a voluntary quit. Bishop et al. v. Digital Equipment Corporation, 270-BH-91

Last edited by gea12345; 03-14-2009 at 03:03 PM..
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Old 04-16-2009, 10:35 AM
 
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The NC UI website mentions that you cannot collect while receiving severance:
Quote:
I received separation pay (or severance pay, wages in lieu of notice, vacation pay, etc.). When should I file a claim? You are not eligible for unemployment insurance benefits for any full week covered by separation pay, vacation pay, etc. (nor may such a week count as your “waiting period week”). Generally, you should file your claim the first week after the period covered by the payment (if the last week of the payment is not a full week’s pay, you may file that same week, although you possibly will still be ineligible due to excessive earnings).
[br] However, makes no mention of lump sum payouts. Does anyone know if this distinction matters. I was severed 4/14/09 and want to know if I need to wait the 4 weeks of severance or since it was a lump sum can apply now. Thanks
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Old 04-16-2009, 10:43 AM
 
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My package was paid out a month prior to my last day of work and was noted as a "bonus" on my paycheck so there would be no problem collecting unemplyment. There was no official document, signed or unsigned. The owner of the company considered it a bonus, even though in unspoken terms we both knew it was severance. The fact that it was paid right before Christmas helped.
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Old 04-16-2009, 10:56 AM
 
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Quote:
Originally Posted by darman1484 View Post
The NC UI website mentions that you cannot collect while receiving severance:
[br] However, makes no mention of lump sum payouts. Does anyone know if this distinction matters. I was severed 4/14/09 and want to know if I need to wait the 4 weeks of severance or since it was a lump sum can apply now. Thanks

If the lump sum payout is done as Annerk describes then once that pay period is complete, you should be able to file for unemployment. For example, I was let go from deloitte and touche, and they gave me a small severace package which was just a bonus in my last check. I then was allowed to file for unemployment. Since my separation was far from voluntary! ;-)

But first ask your employer H.R. dept. if the lump sum will keep you from collecting U.C. and if you file, will they fight it?

Second, some states like as i point out above, N.J. will not allow you to participate in a voluntary buy out plan and get unemployment. But some states will, since the company is offering voluntary in lieu of involuntary.

For U.C., the key words are voluntary/involuntary. But companies are calling severance packages all kinds of things in order for you to sign and promise not to sue them.

good luck!
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Old 04-16-2009, 11:01 AM
 
210 posts, read 390,587 times
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Quote:
Originally Posted by gea12345 View Post
If the lump sum payout is done as Annerk describes then once that pay period is complete, you should be able to file for unemployment. For example, I was let go from deloitte and touche, and they gave me a small severace package which was just a bonus in my last check. I then was allowed to file for unemployment. Since my separation was far from voluntary! ;-)

But first ask your employer H.R. dept. if the lump sum will keep you from collecting U.C. and if you file, will they fight it?

Second, some states like as i point out above, N.J. will not allow you to participate in a voluntary buy out plan and get unemployment. But some states will, since the company is offering voluntary in lieu of involuntary.

For U.C., the key words are voluntary/involuntary. But companies are calling severance packages all kinds of things in order for you to sign and promise not to sue them.

good luck!
My situation is quite similar, except mine was KPMG and it was paid on the same day, but with a different pay advice.

Also, any thoughts on accrued vacation payouts? Mine should come April 31. I don't know if that affects UI either.
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Old 04-16-2009, 11:06 AM
 
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Originally Posted by darman1484 View Post
My situation is quite similar, except mine was KPMG and it was paid on the same day, but with a different pay advice.

Also, any thoughts on accrued vacation payouts? Mine should come April 31. I don't know if that affects UI either.
My accrued vacation was paid out in my final check and didn't affect my collecting u/e.
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Old 04-16-2009, 11:44 AM
 
2,365 posts, read 7,866,818 times
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Quote:
Originally Posted by darman1484 View Post
My situation is quite similar, except mine was KPMG and it was paid on the same day, but with a different pay advice.

Also, any thoughts on accrued vacation payouts? Mine should come April 31. I don't know if that affects UI either.

Yes, you will have to report it as vacation income, in your weekly/biweekly claim, but that will not interfere with your U.C. claim application and determination. But they may probably contact your ex-employer to question the payment to determine what it exactly represents. But once you are determined eligible, that is the first and usually only hurdle!!
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