Whether you've quit your job or been terminated, it’s important to understand how unemployment insurance works, some common reasons why benefits are denied, and how to appeal.
Unemployment Eligibility Requirements
The purpose of unemployment insurance is to give workers who lose their jobs temporary relief while they find a way to earn a living. Each state has its own unemployment insurance system, so eligibility requirements can vary from one state to the next. In general, however, to qualify for unemployment benefits you must prove that you are:
- temporarily out of work
- through no fault of your own, and
- ready, willing, and able to work.
At first glance, these requirements do not appear too onerous, but proving eligibility isn't always easy.
The first step is to determine whether you are "temporarily" out of work within the meaning of your state's law. The most important factor in this analysis is your recent work history.
Denied for Failing to Meet Minimum Earnings Requirement
In order to qualify for unemployment, states typically require that applicants meet a minimum earnings requirement over a one-year "base period." A base period consists of the first four of the five most recent completed calendar quarters before you filed for unemployment.
In California, for example, you must have earned at least $1,300 in your highest-paid quarter of the base period. Alternatively, you will be covered if you earned at least $900 in your highest-paid quarter of the base period and at least 1.25 times your earnings in the highest-paid quarter during the entire base period.
Not every state is the same. In New Jersey, you must show that you earned at least $200 per week in covered employment for 20 consecutive weeks during the base period, or at least $10,000 in total covered employment during the base period.
Whatever the rules are where you live, if you fail to meet your state’s minimum earnings requirements, your claim for unemployment benefits will be denied.
Denied for Quitting Your Job
The general rule is that you cannot collect unemployment benefits if you quit your job. The exception to this rule is leaving for "good cause."
Determining good cause is a state-specific and fact-based analysis, but there are situations common to all jurisdictions that would allow you to quit and collect unemployment.
- Discrimination and Harassment. Violations of federal and state antidiscrimination laws could make your work environment so unmanageable that you are forced to quit, such as enduring constant sexual harassment on the job. This situation is known as constructive discharge.
- A hazardous workplace. You might have a valid reason to quit your job if your employer has violated the Occupational Safety and Health (OSH) Act or a similar state safety law. For example, if your employer forces you to use dangerous equipment that hasn't been properly maintained, or to breathe toxic fumes while you work, you might still qualify for unemployment if you walk off the job.
- Illegal Acts of Your Employer. Your employer cannot ask you to facilitate or engage in conduct that violates the law. Your employer’s illegal conduct is a valid basis to quit your job.
- Relocating for Health or Family Reasons. You might be able to quit and collect unemployment for certain personal reasons, such as moving away to seek a specific type of medical treatment or to care for a sick family member. Leaving your job because your spouse was relocated by the military is another example of good cause.
It is important to emphasize that the availability of these exceptions will depend on your specific situation. One thing, however, is certain: if you voluntarily leave your job without good cause, your claim for unemployment benefits will be denied.
Denied for Being Fired From Your Job
Your unemployment claim will also be denied if you were fired for misconduct. Common examples of misconduct include:
- violating company rules and policies
- ignoring safety protocols
- abusing drugs or being under the influence at work
- being late or absent on a regular basis, and
- engaging in theft or other criminal activity.
If you were terminated simply because you weren't a good fit at your job, or you were laid off as a cost-cutting measure, you'll generally still qualify for unemployment. And, some states, such as California, only disqualify you if the misconduct was particularly serious or harmed your employer's business interests.
Denied Because You're Not Ready, Willing, and Able to Work
If you're laid off from your job and you decide not to return to work, you usually won't qualify for unemployment. States generally require unemployment applicants to attest that they're ready, willing, and able to work, and unemployment beneficiaries typically must prove that they've been looking for work as a condition of receiving unemployment.
Even if you have a good reason not to return to work—for example, because you want to be a full-time parent—you usually won't qualify for benefits if you're not willing to return to work.
How Do I Apply For Unemployment Benefits?
Most states allow you to apply in person, over the phone, via mail, or online.
What If I Fill Out the Paperwork Incorrectly?
Your claim can be denied if you provide insufficient or incorrect information. For that reason, make sure you read your state's filing instructions carefully. And if you have questions, call or visit your local unemployment office.
What Do I Do if My Claim is Denied?
Every state has an appeals process to challenge a denial of unemployment benefits. Be aware, however, that there are time limits within which an appeal must be filed and not every state is the same.
In California, for example, you have 30 days from the mailing date of the Notice of Determination to file an appeal; the deadline in Florida is 20 days from the date of the notice. Check with your state's unemployment agency for the specifics.