A friend of mine recently became unemployed. His company offered him severance pay. But, in order to receive severance, he had to sign paperwork agreeing not to sue the company. He was supposed to receive 64,0000. But, his employer took 25,000 in taxes. This leaves him with very little money until he can find another job. He is responsible for supporting a family of 5. Can he still collect unemployment in additon to severance pay?
2007-12-27 13:56:10 · 2 answers · asked by Snobunny 5 in Politics & Government ➔ Law & Ethics
Depends on how the severance package was worded.
If they gave him the $64,000 as a lump sum (before taxes) then he's unemployed and can file for unemployment. If it was described as - for example - "Three months wages", then he has to wait till the end of the three months.
These are things that should be sorted out BEFORE you sign these sorts of agreements.
Richard
2007-12-27 14:01:46 · answer #1 · answered by rickinnocal 7 · 3⤊ 0⤋
In Ohio, your unemployment benefits don't start until after the period of your severance pay. My husband lost his job in June and received 1 month's severance pay. His unemployment payments were delayed by 1 month due to the severance pay. I believe the state confirmed with his former employer whether or not there was any severance pay, so its not like he could have "hidden" that from the state. (not that he would have been dishonest about it...I'm just pointing that out for anyone out there who might be tempted to "hide" the severance)
2016-05-27 09:20:08 · answer #2 · answered by migdalia 3 · 0⤊ 0⤋