IfI negotiate more severance pay could that affect my unemployment benefits?

Get Legal Help Today

 Secured with SHA-256 Encryption

IfI negotiate more severance pay could that affect my unemployment benefits?

My supervisory position of 10 years was eliminated, and I was given same day notice. They are offering me2o weeks severance pay if a sign a separation and release agreement. They are a non-profit. Since I received no notice I am considering asking for 6 weeks severance pay, but I don’t want them to challenge my unemployment. Should I just sign and take the money?

Asked on May 12, 2011 under Employment Labor Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The issue vis-a-vis severance and unemployment is this: if the severance is paid as a lump sum, it has no effect on unemployment eligibility. If the severance is paid over time, as part of payroll--e.g. in essence, the former employer keeps you on payroll, paying you semimonthly until you've earned out the whole severance--that might delay your eligibility for unemployment. The reason is that in that case, you might still be considered technically "employed" notwithstanding that you are not doing any work. If possible, always get severance as a lump sum for this reason, though sometimes, as at or near the end of the year, it may be more important to delay receipt of severance for tax purposes. Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption