Does a severance package effect my eligibility for unemployment?
Q) My position is being eliminated at ATI physical therapy as of Friday, April 8th. I am being offered at 3 week severance package which has a lot of conditions to it specific my termination. Does a severance package effect my eligibility for unemployment??
A) Yes, a severance package may affect your eligibility for unemployment benefits, depending on how it is structured and paid out.
In general, if you receive a lump sum severance payment that is equal to or greater than the amount of unemployment benefits you would be entitled to receive, you may be ineligible for unemployment benefits during the period covered by the severance payment.
However, if your severance payment is paid out in installments or over a period of time, you may be eligible for unemployment benefits during that time period. The amount of your severance payment may be deducted from your unemployment benefits, depending on the laws of your state.
It’s important to note that the specific rules regarding severance and unemployment benefits can vary from state to state. If you are unsure about how your severance package may affect your eligibility for unemployment benefits, you should contact your state’s unemployment office or visit their website for more information. They can provide you with guidance on how to report your severance payment and how it may impact your eligibility for benefits.