Severance pay and unemployment insurance.?

Question

My friend worked for AT&T for 11 years. Her whole department was recently laid-off. She got a severance check for 28 weeks, plus 2 weeks for vacation time earned. When she went to file an unemployment claim, they told her she couldnt until 30 weeks has passed. (28 weeks severance+2 weeks vacation time =30 weeks.) I think its BS that you have to use up your severance money and CAN'T collect unemployment money while looking for a new job. Thoughts?

Answer 1

I was laid off from Nortel a couple of years back...and yes, this is true you cannot receive unemployment until you have used up your severance.  The severance is to reward them with the number of years service with the company and to help them get by while looking for another job.  You cannot receive both the same time.  So spend your severance wisely.  Better yet getting a job while having your severance is pretty good as well, as it will be extra money in your pocket.  Good luck to your friend.

Answer 2

The unemployment program is run in each state.  Many states do NOT include severence pay time, but they pretty much all include vacation time.

I'd double check with someone else in that department - or go online to research the severence pay thing.