31 Jul My company is having layoffs. Am I eligible for unemployment?

Q. My company is doing a combination of layoffs and offering early retirement packages, all being paid in lump sums. I’ve been offered early retirement this year and I am 59. They will continue layoffs this year into next year but we have no way of knowing who will be impacted. Am I eligible to collect unemployment if I accept the early retirement plan?
— Not sure

A. We’re sorry to hear about the layoffs.

It will all depend on how the severance package is paid to you.

“As long as severance is paid in a lump sum, is intended to recognize past years of service, or does not otherwise extend a person’s employment, it should not affect eligibility for New Jersey unemployment,” said Bill Connington of Connington Wealth Management in Paramus.

If the payments are being made through the company’s payroll system rather than paid in a lump sum, the state may consider you to still be on the company’s active payroll. This could delay your ability to receive benefits.

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This story was originally published in July 2024.

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