San Francisco, CA asked in Employment Law for California

Q: I was fired after being in a PIP. Severance agreement must be signed to receive month’s pay and insurance.

Agreement states that by signing I acknowledge and agree that I resigned from company. Will signing this affect my ability to receive unemployment in California?

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2 Lawyer Answers
Neil Pedersen
Neil Pedersen
Answered
  • Westminster, CA
  • Licensed in California

A: It could. Voluntarily resigning from a job will usually disqualify you from receiving unemployment insurance benefits. It is possible that you could sign that document and then convince the EDD that you were forced to resign or be fired and still get benefits, but you are making it more risky going that approach. Absent your resignation, you would likely qualify for benefits because being terminated for not performing your job up to their standards will usually not disqualify you from benefits.

Good luck to you.

Maurice Mandel II
Maurice Mandel II
Answered
  • Newport Beach, CA
  • Licensed in California

A: I agree with Neil, he is a very sharp guy. In my experience with EDD appeals, sometimes they look beyond the name of the separation and/or any paperwork re: the separation and determine if the separation was motivated by the employer or by the employee, and if the "severance agreement" was presented on a take it or leave it basis. If these things fall on your side of the fence, you can still qualify for benefits, when the employer initiates the separation and you have no choice but to sign the severance that states you resigned. Question also is, could you have refused to sign and remain employed? It sounds like in this case the answer to that is NO! The other issue you raise is whether you are being forced to sign an agreement to receive things you are already entitled to receive? You may already be entitled for COBRA insurance coverage, but you have to pay the premium that the employer would pay. You are already entitled to the vacation pay you accumulated, and all of your pay at the time the employer initiates your separation.

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