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Lucy, Esq.
Lucy, Esq., Lawyer
Category: Employment Law
Satisfied Customers: 27245
Experience:  Former judicial law clerk, lawyer
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My position has been terminated and I am receiving a severance

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My position has been terminated and I am receiving a severance package. My position is relatively highly compensated. I have been asked to defer the agreement to a later date and stay in another lower paying position for 2- 4 weeks at an hourly rate. It will not effect the severance agreement nor my final pay I'm told by HR. However, will it have any effect on my ability to get unemployment?

My name is XXXXX XXXXX I'd be happy to answer your questions today. I'm sorry to hear that you were let go.

If you are working for 2-4 weeks for an hour rate, you will be required to notify the Unemployment Division of the number of hours you work during each of those weeks. If the amount you earn exceeds your monthly benefit amount, you would not be entitled to unemployment compensation during those weeks. Otherwise, your benefits would be reduced.

A person receiving a severance package is typically not entitled to receive unemployment until the package runs out, so the primary difference is that working for those 2-4 weeks will delay the amount of time before you can seek unemployment (if it becomes necessary).

If you are not able to find work before your severance package ends, the lower pay for those few weeks may be part of what they look at to determine your benefits. However, they typically look at the quarter where your earnings were lowest, so it likely wouldn't have an impact. Also, the maximum benefit is 4% of your earnings over a three month period, capped at $240/week. Depending on the exact numbers involved, it may not make a difference.

If you have any questions or concerns about what I've written, please reply so that I may address them. It's important to me that you are 100% satisfied with the service I provide. Otherwise, please rate my service positively so that I get credit for answering your question. Thank you.
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