Unemployment Benefits
In the U.S., if you suffer job loss or a significant reduction in work hours,
then you might be eligible to collect unemployment benefits from the state
unemployment office.
The unemployment insurance system was initiated in the Social Security Act of
1935. Although there are Federal guidelines, each state is allowed to enact unemployment
laws and set its own related rules within the guidelines. Subsequently, unemployment
benefits and eligibility requirements vary by state.
Unemployment Benefits Eligibility
To be eligible for state unemployment benefits, you must meet your work state's
requirements for wages earned and time worked during a predetermined period of
time, called your base period. In many states, the base period is the
first four calendar quarters out of the last five, prior to the time an unemployed
worker applies for benefits.
In other words, you must have been "substantially" employed, as deemed
by the unemployment laws in your work state. But even if you didn't work for
consecutive weeks, for the same employer, or in the same state, you still might
be eligible for unemployment benefits.
The same goes if you didn't earn much. But your wages will determine your unemployment
pay and you must have earned at least a minimum amount during your base period.
There's more about that on the next page.
You must also meet other state eligibility requirements to collect unemployment
benefits. Again, eligibility requirements vary by state; but, these rules generally
apply:
Losing your job can't be your fault. If you get laid off, then
you might be eligible for state unemployment benefits. But if you get fired or quit,
then you might not be eligible. For example, if you get fired for gross misconduct
or failing a drug
test, then you might not have a leg to stand on. But if you quit for
"good cause" in legal jargon, then you've still got a shot at it. Your
work state's unemployment laws might allow you to quit for a serious personal
reason too.
You must be ready, willing and able to work. For example, if
you quit because of a non-occupational, disabling illness or if you become disabled
while unemployed, then you're not likely to be eligible for state unemployment
benefits. Instead, you might be eligible for state or Social
Security disability benefits. If you become unemployed due to a disabling
occupational illness or injury, then you might be eligible for workers'
compensation.
You must actively seek work. To receive each unemployment benefit
check, you'll probably have to regularly report that you are actively job
searching and at which companies;
but, simply submitting your resume to job
banks might do. You might not have to seek work if you are starting up a
business while collecting unemployment benefits. (See the self-employed info
below.)
You can't refuse to take a job for which you qualify. For example,
you might lose your eligibility for unemployment benefits, if you refuse a job
offer simply because you didn't like the interviewer. But your state unemployment
office likely won't force you to take a job that's way below your qualifications
and previous earnings.
You can't attend school full time. But, if you can show that
you are seeking a job for which you are qualified and can work it outside of
school hours, then you might be entitled to an exception. Training provided as
an unemployment insurance benefit will be exempt from this rule.
You can't be employed full time. Natch, if you land a full-time
job, your unemployment benefits will stop. But, you might be able to work part
time and still collect benefits. More about that is on the next page.
You can't receive money from
a former employer. If a former employer owes you money, then your
work state might delay your unemployment pay. For example, if your employer
gives you advanced layoff notice as required by the Feds or
your work state, then escorts you out the door soon
after, you probably won't be eligible to collect unemployment benefits until
after your notice period expires. That's because you're still employed and
receiving employment pay through your notice period, even though you don't
have to show up for work.
Your state might also delay your unemployment pay if you are to receive severance
pay or already have (depending on its purpose per unemployment laws). The
same goes for pension payments or accrued vacation or sick pay. However, even
if your employer owes you money, you likely may apply for unemployment benefits
anyway to get the ball rolling.
You can't have been self-employed full time. You typically
won't be eligible for unemployment benefits if you were self-employed and lost
your income (unless you bought unemployment insurance). However, if you were
self-employed while also working as an employee and you lost your employee job,
then you might be eligible.
You might also be eligible if you were an employee and are attempting to become
self-employed because you lost your job. A few unemployment offices will help
unemployed workers become self-employed, through special
self-employment programs.
You can't collect unemployment benefits from more than one state at
a time. You likely won't be eligible for unemployment benefits if
you are already receiving them from another state. But you might be eligible
to collect the difference, if one state pays more than the other and you've
worked in both states.
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