Can you get unemployment with a severance package?
And the answer is maybe depending on the laws of your state. Also, getting a severance package could lower an unemployment payments that you could get. If you are getting a monthly allotment of severance, it could stop you from receiving unemployment payments. So not only could it be a waste of time, but a waste of time that gives you no money.
Severance is often paid as a lump sum, though it can be paid out in installments as well. With a lump sum payment, you may be entitled to unemployment benefits after you've received that money. Severance that's paid in installments, however, could compromise your ability to collect those benefits since you're still receiving a steady stream of income. But again, the laws vary by state, and in some parts of the country, severance is not considered earned wages for unemployment purposes, which means it won't stop you from collecting benefits.
Find out how a severance package could affect your benefits.
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