Parker v. Underwriters Laboratories, Inc.

**Parker v. Underwriters Laboratories: What Payments Count as Severance?** This case involved a worker named Parker who received unemployment benefits after losing his job at Underwriters Laboratories. Parker had also received money from his former employer as part of a legal settlement where he agreed not to sue the company. When the state discovered this payment, they said Parker owed back $12,285 in unemployment benefits he shouldn't have received. Parker argued that the money from his employer was severance pay, which wouldn't affect his unemployment benefits. However, the Idaho Supreme Court disagreed. The court ruled that the payment wasn't severance pay but rather compensation for Parker agreeing not to pursue legal claims against his former employer. Because of this distinction, Parker was required to pay back the unemployment benefits. **What this means for workers:** If you receive money from a former employer as part of a settlement agreement, it may affect your eligibility for unemployment benefits. The purpose of the payment matters – money received for agreeing not to sue is treated differently than traditional severance pay. Always report any payments from former employers to your state unemployment office to avoid owing money back later.