We previously wrote a blog about negotiating severance agreements and severance packages. This follow-up post specifically deals with the issue of unemployment insurance benefits and severance agreements.
In New York State, you are generally not disqualified from receiving unemployment insurance benefits if you are at the same time receiving separation related benefits such as severance pay or a severance package. However, if your severance package constitutes receipt of your full salary and exactly the same benefits that you received while you were working with the understanding that the salary and benefits will discontinue if you get a job elsewhere, then you are disqualified from receiving unemployment insurance benefits. Some employers do this to prevent you from double dipping and collecting both a severance package and unemployment insurance benefits, but most severance agreements do not have this provision. Your employer’s payment to you of unused accrued vacation time will not affect your eligibility for unemployment insurance benefits.
It is important you carefully examine any limitations receiving severance pay may place on your right to unemployment benefits. Effectively negotiating your severance agreement could affect your future employment status as well as your financial health. Our attorneys can help you analyze your severance package including your non-compete clause, stock option payments, right to positive reference, as well as any releases or waivers. For example, if you think you might have an employment discrimination lawsuit, one of our New York Severance Contract Lawyers can help you figure out if you have a valid lawsuit before you sign a release or waiver to discrimination claims you might have against the company.
Our New York Severance Pay Attorneys can help you negotiate critical terms such as the duration and manner of your severance pay. Before you sign a severance agreement, contact one of our experienced Severance Agreement Attorneys at (800) 893-9645 to help you read the fine print to make sure you are not limiting your right to unemployment benefits or other important legal options. Meet our Lead Severance Pay Agreement Lawyer.
Thank you for visiting our Blog. This blog provides general information and thoughts about various employment law issues primarily in the New York Tri-State area and occasionally in other areas. You are welcome to read the posts. However, do not construe any content on this blog as legal advice or the creation of an attorney-client relationship. Again, we provide the content only for informational purposes. You should not make decisions based information on our blog since the application of the law depends on the facts and each situation may be different. In addition, the law in most jurisdictions is different and changes constantly and we make no representations that any information on our blog has been updated. The Blog should not be used as a substitute for competent legal advice from an experienced employment law attorney in your state or jurisdiction.