Maximizing Unemployment Benefits: The Role of Severance Pay in Massachusetts
Navigating Severance Pay and Unemployment Benefits in MassachusettsIn the world of employment transitions, one often overlooked factor is the relationship between severance pay and unemployment benefits, a topic of significant importance in Massachusetts. This guide sheds light on the intricate interplay between severance pay and your eligibility for unemployment benefits. We'll delve into the Massachusetts unemployment system, the critical components of severance agreements, and the strategic steps you can take to navigate this multifaceted terrain.
Release of Claims: A Crucial FactorIn the Commonwealth of Massachusetts, the presence or absence of a release of claims within your severance agreement holds immense significance. Here's how it works:
Lump Sum vs. Salary ContinuationFrom an unemployment perspective, the form in which severance pay is disbursed, whether as a lump sum or salary continuation, should not fundamentally impact your eligibility. However, it's important to note that severance paid as salary continuation might initially lead to misunderstandings during your unemployment benefits application process. If you encounter an initial denial due to severance pay and your agreement indeed includes a release of claims, you can appeal the denial and submit your actual agreement to clarify the situation.
Confidentiality and Sharing Your Severance AgreementMany severance agreements contain confidentiality clauses. If possible, negotiate for an exception to this provision that permits you to share the agreement with the Massachusetts Department of Unemployment Assistance (DUA) as evidence of your signed release of claims. Most confidentiality clauses include exceptions for disclosures "when required by law," which should suffice to allow you to submit your agreement to the DUA. Furthermore, if your employer has agreed not to contest your unemployment claim, sharing the agreement should pose no issue, as documents submitted to the DUA are confidential by law.
Reporting Severance PayEven if your severance pay does not offset your unemployment benefits, remember to include it in your weekly reporting to the DUA once your benefits commence. Failing to do so can result in overpayment claims and potential penalties.
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Meet Our Employment Lawyers
Emily Smith-Lee is the owner and founder of slnlaw. She is a 1996 graduate of Boston College Law School. She was previously a partner at the Boston office of a large international firm, where she worked for thirteen years before starting the firm that became slnlaw in 2009. She has been recognized as Massachusetts Superlawyer each year since 2013, and in 2018 earned recognition as one of Massachusetts Lawyers Weekly's Lawyers of the Year. She has written a book on employment law: Rules of the Road, What You Need to Know About Employment Laws in Massachusetts, and helped thousands of clients on both the employee and employer side with severance and non compete review and negotiation, wage and hour, discrimination and retaliation disputes, workplace sexual harassment situations, and advice about employment law generally.
Rebecca Rogers: Rebecca is a 2006 graduate of Boston College Law School, and has worked with slnlaw since 2013. She previously worked as an intellectual property litigation attorney for Fish & Richardson in Boston, Massachusetts, and clerked for the Massachusetts Supreme Judicial Court. Rebecca has helped clients with wage and hour disputes, employment discrimination, harassment and retaliation claims, review and negotiation of severance and non compete agreements, and advice to both employees and employers about navigating complex employment situations.
Jenna Ordway: Jenna is a 2013 graduate of Quinnipiac Law School, and also earned an LLM in Taxation from Boston University in 2015. She has been affiliated with slnlaw since 2011, first as a law clerk and then as an attorney. Jenna has been recognized since 2019 as a "Rising Star" by Massachusetts Superlawyers. Jenna has helped clients with review and negotiation of severance and non compete agreements, wage and hour disputes, discrimination, harassment and retaliation claims, and advice to small business owners about employment law and other business matters.
Elijah Bresley: Eli is a 2014 graduate of Seton Hall Law school, and has worked with slnlaw since 2020. He previously worked for a boutique employment law firm outside of Boston, and then for the Labor and Employment department of a large Boston firm. He also spent a year clerking for the judges of the Superior Court in Hartford, Connecticut. Eli has helped clients on the employee and employer side with all varieties of employment law issues, including employment discrimination, harassment, retaliation, and wage and hour issues, litigation in MCAD and state and federal courts, and advising employers about employment policies and practices.
Sharleen Tinnin: Sharleen is a 2010 graduate of Northeastern University School of Law, and has been with slnlaw since 2023. Prior to joining slnlaw, she worked with King, Tilden, McEttrick & Brink, P.C. on complex civil litigation matters. She previously worked for the United States Department of Justice, and received an "Excellence in Justice" award in 2017. Sharleen has helped clients with wage and hour, discrimination, harassment and retaliation disputes, review and negotiation of severance agreements, and litigation in MCAD and state and federal courts on employment related issues.
How We Can Help
Our expert guidance can help you understand the intricacies of severance pay and its effects on unemployment benefits in Massachusetts. We offer valuable insights and advice to ensure you navigate this complex process effectively. You can use the button below to schedule a call back from a member of our team, or give us a call at 781-784-2322.
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