Unemployment (employment, wages, severance)

[lmetzger]

In the state of Maryland, if I am receiving severance pay (same pay as I did when employed, can I also receive Unemployment Benefits? I have heard mixed responses and cannot find a clear answer. I had my phone interview and responded truthfully to all the answers and I was told my employer had discrepancies in response to my answers. If I am allowed to receive unemployment during this time, should I appeal?

[Sweetpea79]

Probably not. Regardless if you are receiving severance or not you still have to go through the MD unemployment office and then your former employer. If your old employer put money into unemployment or not, they have the right to say yes or no, and if they say no I think you can go through arbitration. If your former employer made you sign a severance agreement forfitting your rights to unemployment, then you are at a loss.

However, once your severance is done, then you may be able to collect, so I would ask the unemployment office about that. But you still may end up getting screwed on unemployment since you took the severance. Call your old HR and ask what's going on.

[LolaBud]

lmetzger, I've had the same exact experience you describe. When I initially filed, I reported receipt of a lump sump severance payment. My job was eliminated (not due to my performance) and the company closed. In a telephone interview, the Maryland State employee told me there was a discrepancy in what I was claiming and what my employer stated concerning the severance. Several friends and family encouraged me to file for unemployment benefits though I did receive a lump sum severance package to cover a few weeks. During the phone interview, I was told that I probably would not be eligible as they (Maryland State) would apportion what I've received as pay for the next few weeks. When that runs out, I may be eligible for payments.They also told me I would receive a written decision within a few days (I did. It said I was denied.)

Though I'm not eligible for payments at this time, I was also told I'm still required to file every two weeks and keep an accurate record of my job searches. Below is an excerpt of the "rules" from the MD website for unemployment benefits. I find it rather ambiguous and believe it leaves the final decision up to the State's discretion.

All the best in your job search!

From the Maryland Dept. of Labor website:

Severance Pay The receipt of severance pay is always disqualifying unless the claimant has been permanently separated from employment due to lack of work, reduction in force, facility closure, etc. In these cases, severance pay will not be deducted unless the employer continues to pay all wages and provides the claimant the same benefits package that was received while employed. Therefore, if the separation reason, “Lack of Work/Layoff of more than 10 weeks/Reduction in Force/Job Abolished”, is selected an additional question must be answered regarding the continuation of benefits. If severance pay is disqualifying, it is deducted from UI benefits on a daily basis beginning with the day following the last day of work and until all money has been allocated. The severance pay amount and gross weekly wage is needed to correctly allocate the payment.