[MD] Can I receive unemployment benefits while receiving severance, and what final pay is owed under law?

MD Employment

Legal Eagle

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Ok so the state government says, "If you are still receiving income (like being paid severance, vacation, sick time, or pension), your benefits may be canceled out or reduced by those payments until those payments stop. For example, if you qualify for $300 a week of unemployment insurance benefits, and are getting $200 a week from severance, you will receive the $100 difference."(MD Labor and Employment Code § 8-1009(a)(1)(ii))

https://labor.maryland.gov/unemployment-insurance/claimants/do-i-qualify.shtml

So you can, but it's going to be lowered potentially based on those installments.

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In the state of MD, can you accept a severance agreement and collect unemployment?

Lexi, Chatbot

I understand that navigating severance agreements and unemployment benefits can be confusing. Have you already received a severance agreement from your employer?

Yes.

Lexi, Chatbot

Are you currently unemployed or still working while considering this severance agreement?

Unemployed.

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 unemployment benefits.

Yes.

Legal Eagle

Hello, I’m Legal Eagle. I’m an attorney who works in your area of law and I’ll help you sort this out today. I’ve read what you shared so let’s go over what’s happening and what your best next steps look like.

Has your severance agreement specified how many weeks of pay or benefits you’ll receive and whether those payments will be made all at once or over time?

Yes.

Legal Eagle

Great, thanks for confirming that. Could you tell me if your severance payments are being made as a lump sum or spread out over time?

2 installments

Legal Eagle

Ok! Did you need to tell me anything else? If not, I can start with answering your question.

I was accepted to receive unemployment.

Legal Eagle

https://labor.maryland.gov/unemployment-insurance/claimants/do-i-qualify.shtml

So you can, but it's going to be lowered potentially based on those installments.

Legal Eagle

Does that help clarify things? I want to make sure I didn’t leave anything out.

Ok I see. I was also wondering if I am owed my accrued sick time as it is not mentioned in this document.

They state I am not owed my vacation or any "bonuses" but do not mention sick time at all.

Legal Eagle

Sure thing! So you are required to be paid out for unused vacation time, but I can't find anything stating sick time.

I was fired a week before going on a weeklong vacation - I was approved for 56 hrs and only have 9.28 net available. Sick time I have 72 hrs available still.

Legal Eagle

I hear you! Sick time doesn't have to be paid out, but unused vacation time that was earned does.

What is due by law in the final paycheck in Maryland?

Legal Eagle

Sure thing! It's due by your next scheduled payday.

Legal Eagle

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