weekly unemployment claims

silk · Aug 15, 2009

Is it correct that when someone receives severance pay, that they don't file for unemployment until that runs out?

So since alot of people began to get fired 6-9 months ago, many received severance packages of 4-12 months ect. So a bunch of these people are now reaching the end of their severance and then filing for unemployment.

The point being, if the above is correct, that when the weekly unemployment filings is 550,000... a portion of these really lost their jobs many months back. So now we are at a point where the unemployment claims overstate job losses. This could be why the the unemployement claims are still very high but the actual number of jobs lost per month is alot lower??

Is any of this correct?

On a sidebar, towards end of year millions of people's unemployment and severance will be running out. Seems like Q1 2010 will not be good after this Q3 and Q4 inventory build is completed.

milktruck · Aug 15, 2009

Im pretty sure severance is usually paid lump sum, and often precludes you from collecting unemployment. Not 100% tho.

TraderZones · Aug 15, 2009

I believe what delays you is listed on the unemployment signup page(s) of most state's/province's unemployment claim depts.

jprad · Aug 15, 2009

Quote from silk:

Is it correct that when someone receives severance pay, that they don't file for unemployment until that runs out?

No, there's nothing prohibiting you filing for unemployment while receiving severance.

milktruck · Aug 15, 2009

Quote from jprad:

No, there's nothing prohibiting you filing for unemployment while receiving severance.

Except a contract stating that severance is contingent on you not filing for unemployment. Im pretty sure I had to sign one of those once.

TraderZones · Aug 16, 2009

Quote from milktruck:

Except a contract stating that severance is contingent on you not filing for unemployment. Im pretty sure I had to sign one of those once.

I cannot believe that is legal. Every company of size is required to participate in UC. And I am sure it is withheld from the worker's pay in some way, even if paid by the company.

I would file for UC anyway (after collecting severance and moving it out of the account they sent it to), and make them legally force it to be denied.

I think the only reason it can be denied, is if you voluntarily left the company or were fired for cause. Of course, if the severance was part of either of these, then...

milktruck · Aug 16, 2009

you know what, I think I am mistaken. it was a layoff years ago so the document is long gone. I did have to give up a few rights but unemployment never came into play cause I had something lined up.

TraderZones · Aug 16, 2009

Quote from milktruck:

you know what, I think I am mistaken. it was a layoff years ago so the document is long gone. I did have to give up a few rights but unemployment never came into play cause I had something lined up.

Companies cannot make employees rights like unemployment, or OSHA or workmen's comp go away at the stroke of a pen. These are govt regulations, they are not bargaining chips for the HR dept.

Some companies that had a no-layoff policy years ago, were allowed to avoid some requirements. (Like IBM and Delta). But those things disappeared under the relentless advance of globalization.