Double dipping? Severance payments and unemployment compensation

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in Employee Benefits Program,Firing,Human Resources

Q. May a terminated employee receiving payments under a severance agreement also receive unemployment benefits?

No. Receipt of a severance payment in a given week is a disqualifying event for receipt of unemployment benefits in the same week. When severance is paid in a lump sum, covering more than one week, the Employment Security Commission will allocate the sum pro rata over ensuing weeks to determine when the former employee may become eligible for unemployment benefits.

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