FedEx Freight | Don't worry about it

[Cody]

I have never been laid off or given a severance so my question is the folks that take the severance....they have to sign something in order to get it. So they are walking away from the company. Are they eligible for unemployment since they technically are quitting? I just want to make sure these folks have good info and don't take the package voluntarily to find out in 12 weeks they are SOL

This may depend state by state, but in almost all cases, I think you'll find that severance pay is considered continued employment until it runs out, so it will negate unemployment while the severance continues. In other words, let's supposed you've been given 30 days severance pay. In most cases, you would be unable to receive unemployment until 30 days after you've left the company. Think of the severance as still having a job, you just don't have to go to work to get paid. Once the severance is over, you no longer have a job.
Check with your state's unemployment office. They'll be able to answer your questions. One last thing, sometimes as a condition of receiving severance pay, you agree to not apply for unemployment benefits. Who knows we have not seen anything in print yet.

 

[jdk1600]

Disclaimer: Please verify with your state unemployment agency.

However, in the state of Pennsylvania it appears that FedEx Freight employees would be eligible to receive unemployment compensation if they elected to take the voluntary severance per Article IV, Section 402 (d) of the Pennsylvania Unemployment Compensation Law:

Provided further, That no otherwise eligible claimant shall be denied benefits for any week in which his unemployment is due to exercising the option of accepting a layoff, from an available position pursuant to a labor-management contract agreement, or pursuant to an established employer plan, program or policy.

 

[SMOKESTACK]

Disclaimer: Please verify with your state unemployment agency.

Guys make sure you check into your own states rules on this .
I know everyone is putting stuff out there trying to help all of
us but please use it the info cautiously and check with each of
the states work force development offices .

Good luck to all of us . / SMOKESTACK

 

[Kings disciple]

For guys/gals in Tennessee-
Severance pay is considered wages, and employers pay premiums on severance pay when it is paid; However, former employees can receive unemployment benefits while receiving severance pay, since severance pay is considered pay for prior services.
From TDLWD Handbook for Employers.

So yes you can take the severance money and draw full unemployment benefits right off the bat without penalty.

DatelineDec09 (scroll to FAQ. section.)

But like Smoke said, check on it yourself with local labor office.