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Can You Receive Unemployment Benefits While Receiving Severance Pay in New York?

In January 2014, the New York Unemployment Insurance Law was amended.


Questions about unemployment? Contact our New York labor lawyers today!


Details Surrounding Amended Law

Under the amended law, an unemployed individual is disqualified from collecting unemployment insurance benefits for any week in which his or her severance pay exceeds $420.00 per week.

Once the severance pay runs out, and the individual is still unemployed, he or she may still be eligible to receive a full 26 weeks of unemployment benefits after the weekly severance money is paid out.

Preventing Disqualification through Negotiation

If an individual wants to prevent disqualification under the amended law, he or she can negotiate that the first severance payment or lump sum severance payment is issued by the former employer more than 30 days after the individual’s last day of employment.

If the unemployed individual receives the first severance payment or lump sum severance payment more than 30 days after the last day of employment, then he or she can collect unemployment benefits immediately after the initial or lump sum severance payment is disbursed.

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