California Employment Law
California Employment Law Questions Answered by Legal Experts
Hello and thank you for your question today.
Are you online with me?
Welcome to the chat
Unfortunately, I must tell you that the people who staff the disability at the local EDD are right, but not for the reasons you may think.
Yes I am here, it will just take me a few moments to type up your response.
It is not that disability payments offset unemployment, but rather to receive disability payments, you must be unable to work. To receive unemployment, you must be ready, willing and able to work.
Thus, the EDD has stated that you cannot be on both programs simultaneously
Yes I understand that
oh you are asking if severance affects your disability payments?
That is true for the purposes of unemployment
However, severance payments do offset disability payments. The offset is calculated based on the gross disability payments and gross severance payments.
When the severance payment period ends, the disability benefit will resume
according to the normal schedule if you are still considered disabled
Yes, please give me a few minutes and I will find a link for you
Correct, but as I mentioned before that is for the purpose of receiving unemployment.
You are asking if it affects disability payments
I know it does affect it, but the exact provision of the law is eluding me at the moment. Would you like me to opt out in case another expert has it off the top of their head?
Or would you like to come back in ten minutes when I will have a link for you?
Not a problem.
Also, I should ask, is the severance as a lump sum or payment over time?
Because, if I can find it, the opinion letter sent out by the EDD specifically references that installment payments of severance would effect disability, while a lump sum payment would not.
That's what I assumed, I will find it for you.
There is no question that severance is not considered wages, and I definitely understand the confusion that this is causing because of that. Unfortunately, without the opinion letter, I cannot give you the exact reason behind it, just that i know they do it. As you can see from this bad rating a previous expert got on a different question from JustAnswer.
If the reason they are denying you is because they are calling it a wage, then the California Supreme Court has ruled that dismissal and severance payments of any kind, are not wages for any purpose relating to disability benefits.
However, it is my understanding that there is a separate reason why SDI payments are reduced based on installment payments
Would you you like me to opt out while I continue to look for you in case another expert is able to respond to you sooner?
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).