Unemployment Benefits
In the U.S., if you suffer job loss or a significant reduction
in work hours, then there's a good chance that you are eligible
to collect unemployment benefits from your 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, generally:
Losing your job can't be your fault. If you get
laid off, then you're likely eligible for state unemployment benefits.
But if you get fired or quit,
you might not be eligible. For example, if you get fired for gross
misconduct or failing a drug
test, 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 state's unemployment laws might allow you to quit
for personal reasons, 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, 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're likely
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, you might get 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, your state might delay your unemployment pay. For
example, if your employer gives you advanced layoff notice as
required by the Feds or
your 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. Some unemployment
offices will help unemployed workers become self-employed, through
special 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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