Can you file for unemployment after accepting a severance package?

Whether or not you can collect unemployment after accepting a severance package will vary from state to state.  Every state has a formula to calculate the amount you can collect on a weekly basis from the state’s unemployment fund.  Even after the all the calculations are completed, the weekly payout amount will still be capped at a particular amount pre-determined by the state.  For instance, if it has been determined that your weekly benefit rate is $800, but the state has the maximum weekly benefit amount to be $600, then the most you can receive on a weekly basis is $600.  Additionally, any additional monies you receive will be deducted from this amount and entered into the formula for further calculations.  Other monies received could be for a part-time job, holiday pay, vacation pay, severance pay, etc.). 

            In most states, even though you received a severance package, it should not prohibit you from collecting unemployment.  For instance, if your severance package was six weeks worth of pay, then the unemployment would kick in after sick weeks.  The majority of states would not allow you to collect severance pay and your weekly unemployment benefit for the same time period.  This makes sense since you shouldn’t receive more money in a week’s time than you would have received if you were working.

            If you have further questions, you could contact an employment attorney in your area for advice or your state’s department of labor.