OT - Unemployment Question

[knightfan7]

I received text from a relative who will be out of a job shortly since her office is closing. She asked if severance and vacation pay is counted against unemployment. I said as I remember from when my job was outsourced years ago it isn't.

Is that correct?

 

[TonyLieske]

Originally posted by knightfan7:

I received text from a relative who will be out of a job shortly since her office is closing. She asked if severance and vacation pay is counted against unemployment. I said as I remember from when my job was outsourced years ago it isn't.

Is that correct?

Might depend on the state. FWIW, I can say that in Canada any severance is absolutely considered when getting unemployment (ie: if you got the equivalenet of 1 year severance, then they will not give you unemployment for a year. If you get the severance after already starting unemployment, you will have to pay it back).

 

[knightfan7]

It's NJ.

 

[TonyLieske]

Originally posted by knightfan7:

It's NJ.

If she has a choice, tell her to opt for lump sum payout. From NJ's Dept. of Labor:



Q. Should I wait until my severance pay ends to file a claim?

A. No, because some severance/separation payments do not extend employment. You should file your claim after you stop working full-time. Payments that do not extend employment include severance payments based on years of service with an employer. However, salary continuation through termination and payments in Lieu of Notice, do extend employment. When you file your claim by telephone, the agent will review all separation payments with you before the claim filing process is completed. If you file your claim via the Internet, and it appears that your payment for periods after your last date of work may affect your unemployment benefits, you will be scheduled for an interview with a claims examiner.

 

[knightfan7]

Thanks so much Tony. It's a lump sum based on yrs of svc, in this case 3.

 

[yesrutgers01]

Tony- it is refreshing to see someone provide a very concise and clear answer to one of our fellow fans without being snarky or taking it off track.