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  1. #1
    Join Date
    Mar 2016
    Posts
    21

    Default Can You Still Qualify for Unemployment Insurance if You Accept Severance

    My question involves labor and employment law for the state of: Missouri

    I have a dilemma and have to make a serious decision soon. Upon the completion of a workplace investigation, I was given the option of returning to work under a final warning or accepting a monetary offer. If I return to work, it is clear that my life would be hell. One attorney I spoke to briefly said to go back and document everything and another said to seriously consider the offer and thought it was decent. He said I could counter, but there's no guarantees, etc. Both acknowledged that I could pursue legal action at a cost and agreed I had a pretty good case.

    My question is, if I accept the offer (12 weeks of pay paid in bi-weekly payments) can I still be eligible for unemployment insurance? Or, would the fact I didn't go back to my job disqualify me? I can't see myself returning under the harsh conditions there. I heard my boss is telling people I have been really sick. It would be great if I had a job and that pay was extra money, but the truth is finding a job isn't that easy, especially when I have to tell prospective employers I am out of work. Why would I leave my job before having another one?

    I am very confused at this point. I have three kids to support and am concerned for my livelihood and future.

    Any thoughts or advice is much appreciated. TIA

  2. #2
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: If I Accept Severance Package, Will I Still Be Eligible for UI

    The information is right on your state's UI FAQ page:

    https://molabor.uservoice.com/knowle...its-while-i-am

    You can (and should) apply for benefits, but the severence is required to be reported and will reduce/eliminate your benefits.

  3. #3
    Join Date
    Feb 2008
    Posts
    1,179

    Default Re: If I Accept Severance Package, Will I Still Be Eligible for UI

    while I agree with Flyingron, I do know there are some states that count severance if and only if you aren't required to sign a waiver/release of legal claims. If you sign the waiver, those wages count as a payment for that waiver rather than the true definition of severance (learned that the hard way in TX). I don't know your state though...they may not put that on their website, so I would suggest that you still try to make a claim if you decide to take the severance package with a waiver. Or call the state UI and ask that specific question. Does money received for signing a waiver constitute severance?

  4. #4
    Join Date
    Mar 2016
    Posts
    21

    Default Re: If I Accept Severance Package, Will I Still Be Eligible for UI

    Thank you both!

    hrfor me - that's what I am wondering too, because I would have to sign and if that's all I get, that is not going to be good. I guess I will call to speak to someone. I am tempted to make a counter offer as 12 weeks isn't enough compensation IMO.

  5. #5

    Default Re: If I Accept Severance Package, Will I Still Be Eligible for UI

    Quote Quoting livnlife
    View Post
    Thank you both!

    hrfor me - that's what I am wondering too, because I would have to sign and if that's all I get, that is not going to be good. I guess I will call to speak to someone. I am tempted to make a counter offer as 12 weeks isn't enough compensation IMO.
    Counter offer on severance? Please do tell me us how that works out for you

  6. #6
    Join Date
    Sep 2010
    Posts
    19,901

    Default Re: If I Accept Severance Package, Will I Still Be Eligible for UI

    Quote Quoting hr for me
    View Post
    while I agree with Flyingron, I do know there are some states that count severance if and only if you aren't required to sign a waiver/release of legal claims.
    Missouri is not Texas. It matters not whether you signed anything or not, you must report the severence if you're applying for UI and it will count against your eligibility.

  7. #7
    Join Date
    Mar 2012
    Posts
    1,360

    Default Re: If I Accept Severance Package, Will I Still Be Eligible for UI

    Severance does not always equal a qualifying separation. This isn't a case of it's severance or no job at all. I'd be more concerned whether this is going to be treated as a quit or a discharge. Looks like a voluntary quit to me because there is a job to go to, and this may or may not be a good cause quit.

    Quote Quoting flyingron
    View Post
    It matters not whether you signed anything or not, you must report the severence if you're applying for UI and it will count against your eligibility.
    It appeared that way in my state for 10 years. Then someone took it to court where the decision was published. The ALJ's were already applying the principle in appeal hearings only most claimants didn't know any better because that was what the state website said. The key question that was always asked at the hearing was, "if the employee didn't sign, how much would they get in severance"? The answer was usually nothing, and the ALJs would disregard the "severance" for UI purposes.

    She should report it, but I'd appeal in case MO has behind the scenes operations like my state was doing.

  8. #8
    Join Date
    Mar 2016
    Posts
    21

    Default Re: If I Accept Severance Package, Will I Still Be Eligible for UI

    Thanks everyone!

    It is actually called a "Transition Agreement." not severance. Sorry for the confusion.

    I complained about retaliation and hostile work environment months ago and nothing was ever done. I complained nearly a month later in writing and still nothing. Then, I was placed on an unpaid suspension due an allegation that I can prove is sketchy. I tried to do the right thing and send one more email after I was suspended. This prompted an immediate investigation (finally) and changed my leave to a paid one. So, this is why I bring up counter offer. I mean, my future is on the line here. I have to be able to find gainful employment and this completely taints my work history, etc. And I just can't endure going back to such a horrible environment (and I know they don't want me back either). Thanks!!

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