by barb
(arizona)
I was disqualified for unemployment in the state of Arizona until 8/10/10 due to receiving a severance package. Does this mean that I have to start the whole process over at that time?
No, I wouldn’t think so at all, it just means that the severance is representing “wages” up to 8/10 and the amount is wiping out any entitlement to a partial benefit. You will be able to collect the weekly benefit amount when the severance is no longer an issue if “otherwise eligible”.
Anyone can establish a claim once they become unemployed, but after that point .. the state will take vacation pay, dismissal payments, back pay or severance if considered wages into account. It becomes deductible income from benefits per a state specific formula for computing partial benefits.
They also look at pensions and in a few states they also look at social security benefits.
Some states do take a look at the type of severance first if they have provisions which might exclude certain types of severance as wages.
This is state specific and everyone should check their own state unemployment statutes to investigate further.