Example 1: The employer provides a job security plan which pays full salary and benefits for five months after the layoff date. The employees are on-call to work as needed for the employer. These payments are deductible because the payments are conditioned on your agreement to remain on-call.
Example 2: An employment contract provides for payments for up to two years following layoff, based on years of service. Fringe benefits continue during the period and accrued vacation time may be used to extend the length of the payments. Payments are deductible because there is a clear connection between the payments and the time period following the last day of work based on the continuation of fringe benefits such as vacation leave.
Wash. Admin. Code § 192-190-050
Statutory Authority: RCW 50.12.010, 50.12.040, and 50.20.010. 10-11-046, § 192-190-050, filed 5/12/10, effective 6/12/10.