I understand that I cannot collect Unemployment insurance while still on severance pay after being laid off. Am I correct?

I got laid off in May 2016 after almost 30 years of employment,and I have been on
severance pay since.

I understand that I have to wait until I collect the last payment from employer
to apply for UI. Am I correct?

Asked on January 19, 2018 under Employment Labor Law, Alaska


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

You are correct. When severance is paid out over time (as opposed to receiving it in one lump sum) it is considered salary continuation: i.e. it is treated the same as still being employed, still being on payroll, and still being paid your working salary or wages. Because it is considered the equivalent of still working, you do not become eligible for unemployment until severance is over.

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