Q) I work at a bank they are being bought out. I am receiving a severance package. Will I still qualify for unemployment?
A) Severance pay may impact your unemployment benefits depending on how it is paid and your state laws. For example, receiving severance pay does not impact your benefits in California. In Texas, severance will not stop receipt of unemployment benefits, but payments will be delayed until the payment’s period of coverage has expired. Unemployed workers in Florida are not entitled to unemployment compensation for any week that the severance pay is equal to or greater than the weekly benefit. If severance is lower than unemployment, you would be paid the difference. In New York, if you continue to receive the exact same benefits you received while working until you find a new job you would not be eligible for unemployment. It is important that you get information on your state laws regarding how your state views Severance pay while getting unemployment benefits.