Effect of severance agreement with unemployment
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Effect of severance agreement with unemployment
I was laid off and signed my severance agreement with the understanding this also frees my company from my suing them for age discrimination, unlawful separation, etc. However, due to their own mismanagment, now my unemployment benefits are held and would be payable until possibly July I supplied all the information required however the company did not respond to the state regarding the severance payment, this exceeds the UE benefits which is why my UE is on hold until July. Do I have legal recourse in this matter?
Asked on May 1, 2018 under Employment Labor Law, Ohio
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Severance delays unemployment. States do not want you to collect both your salary (in the form of severance) and unemployment benefits at the the same time. If you are receiving severance payments every week or biweekly/semimonthly, you are not eligible for unemployemnt until the payments stop--it's then that you are considered to finally be unemployed. If you received lump sum payment, then they figure out how many weeks of salary that is equivalent to and start unemployment after that.
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