[CA] [CA] Can I still get unemployment benefits if I sign a separation agreement?
Can you get unemployment if you sign a separation agreement?
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In California, signing a separation agreement does not automatically disqualify you from receiving unemployment benefits — but it depends on the specific terms of the agreement and the circumstances of your departure.
If you were let go and did not voluntarily resign, you are generally eligible for unemployment benefits.
Here are the key considerations:
1. Severance Pay
If your separation agreement includes severance pay, it generally does not affect your eligibility for unemployment benefits in California.
However, if the agreement implies that you voluntarily resigned, that could impact your eligibility.
2. Waiving Rights
Some separation agreements include a waiver of claims against the employer (e.g., wrongful termination or discrimination).
This does not directly affect unemployment eligibility, but be sure that the agreement doesn’t contain language implying a voluntary departure.
3. Reason for Separation
Unemployment benefits are typically granted to individuals who lose their jobs through no fault of their own.
If your agreement lists the separation as “mutual” or “voluntary,” it might delay or complicate your claim, as the EDD could interpret that as a resignation.
If the separation was initiated by the employer (and your documentation supports that), you should still qualify.
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Full Conversation
Can you get unemployment if you sign a separation agreement?
Lexi, Chatbot
I understand this can be a concerning situation. Were you let go from your job or did you resign?
I was let go, but I also signed a separation agreement that gives me pay for an additional month after termination.
Lexi, Chatbot
Have you already signed the separation agreement, or are you considering signing it?
Yes, I have signed.
Lexi, Chatbot
Is there anything else the employment lawyer should know before I connect you? Rest assured they’ll be able to help with your separation agreement.
Yes.
Lori
Hello, welcome to AskALawyer. I am an attorney with over 25 years of experience. I’m sorry to hear about your situation. Please be patient if I don’t respond immediately, as I may be typing or reviewing your details carefully.
What city/state is the employer located in?
What specific terms or conditions are included in your separation agreement that might affect your eligibility for unemployment benefits?
Have you applied for unemployment benefits yet, or are you planning to do so soon?
I haven’t applied yet but just checking to see if I can or should. I am in California.
Lori
Thanks for the information. What is the basis for termination listed in the agreement? That may affect benefits. Does it state you are being laid off?
It says it is a mutual separation and hold harmless agreement where they are paying me one month’s pay to basically terminate my employment and have me go away peacefully. There was no wrongdoing on either side. Just trying to figure out my rights, options, and benefits.
Lori
In California, signing a separation agreement does not automatically disqualify you from receiving unemployment benefits — but it depends on the specific terms of the agreement and the circumstances of your departure.
If you were let go and did not voluntarily resign, you are generally eligible for unemployment benefits.
Here are the key considerations:
1. Severance Pay
If your separation agreement includes severance pay, it generally does not affect your eligibility for unemployment benefits in California.
However, if the agreement implies that you voluntarily resigned, that could impact your eligibility.
2. Waiving Rights
Some separation agreements include a waiver of claims against the employer (e.g., wrongful termination or discrimination).
This does not directly affect unemployment eligibility, but be sure that the agreement doesn’t contain language implying a voluntary departure.
3. Reason for Separation
Unemployment benefits are typically granted to individuals who lose their jobs through no fault of their own.
If your agreement lists the separation as “mutual” or “voluntary,” it might delay or complicate your claim, as the EDD could interpret that as a resignation.
If the separation was initiated by the employer (and your documentation supports that), you should still qualify.
Thank you! Is there a specific statute that says this so I can do additional research?
Lori
No, there is no specific statute. However, you can find detailed eligibility guidance on the California Employment Development Department (EDD) website.
Lori
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