Unemployment Compensation Benefits

Employees who are laid off are entitled to unemployment benefits and should immediately file a claim with the Department of Labor. Generally, an employee is entitled to collect unemployment benefits while simultaneously receiving severance payments. However, severance pay can affect your unemployment compensation benefits. A claimant may be ineligible if he or she is receiving the same salary and benefits under the severance plan as was received while employed. The employment lawyers at Fitapelli & Schaffer can review your severance agreement to determine whether you remain eligible for unemployment benefits.

Salary Continuation

Severance pay may constitute salary continuation and will possibly disqualify you from receiving unemployment benefits if the amount you are receiving is equal to or greater than your previous weekly wages. This is true whether you receive severance pay in the form of a lump sum or installments.

Unemployment benefits are based on your salary and the length of time you were employed. The state will assess your weekly wages to determine whether you are entitled to unemployment based on the amount of money you received under your severance agreement and, if you qualify, how much unemployment you will receive.