Unemployment compensation insurance benefits are based on both federal and state programs. They're designed to help you survive financially while looking for new employment after losing your job.

Initially set up in 1935 as part of the federal Social Security Act, unemployment compensation programs are largely administered through the Federal Unemployment Tax Act (FUTA) and state unemployment programs.

Eligibility

To qualify for unemployment compensation, you must have a record of a minimum amount of earnings over a set period of time. It's usually the 12 months before you lost your job. You also have to be ready, willing and able to work.

In most states, you won't be eligible for unemployment compensation if you:

• Quit without "good cause," such as because you hated the commute to work
• Were fired for serious misconduct, like stealing from your employer or physically hurting a co-worker
• Are self-employed, like an independent contractor, or you're a student
• Are on strike from your job
• Are unavailable to work due to illness or other circumstances

What's considered "good cause" to quit your job? Laws vary by state, but generally "good cause" reasons focus on illegal job conditions rather than simple job dissatisfaction. Examples of "good cause" include:

• Unsafe or unhealthy working conditions
• Being asked to do something illegal
• Being harassed because of your gender, age or ethnic background

In some states, "good cause" can sometimes include personal circumstances that force you to leave the job. Following a spouse who's been transferred to a job out-of-state or in the military, or taking care of seriously ill family members are good examples. The laws in your area should tell you what's "good cause."

What type of job misconduct is serious enough to disqualify you for unemployment compensation? It must be something that goes beyond simple poor judgment or personality conflicts. Examples of serious misconduct include:

• Frequent unexcused absences or lateness
• Insubordinate behavior such as cursing at your supervisor or refusing to do assigned work
• Stealing or dishonesty
• Drinking or drug use in the workplace

Unemployment Compensation Filing Process

It's best to file an unemployment compensation claim with your state agency as soon as you're no longer at your job. It sometimes takes several weeks after filing to start receiving payments.

Your state's unemployment compensation department will first decide whether you're eligible for benefits based on information provided by you and your former employer. In most states, you may appeal the notice if you are rejected, but you have to do it within one or two weeks after being denied benefits.

Referee or Appeal Hearings

If either you or your former employer objects to your state's determination of eligibility, there will be an informal hearing, typically in front of a government hearing officer. They're commonly called "referees" or "hearing administrators." This is your one and only chance to make a record as to why you should get benefits.

It's a good idea to have a lawyer represent you if you can afford one. A lawyer familiar with your state's law can help you present your best evidence. In some areas, there are free or sliding-fee-scale volunteer lawyers who can help you.

Types of information you'll want to produce at the administrative hearing include:

• Written records, such as your personnel file, letters to and from your employer, timecards and timesheets, written warnings, written evaluations, and pay stubs
• Testimony from witnesses, such as fellow employees, and friends and family with whom you may have discussed your work situation
• Your own testimony about inappropriate workplace conditions or demands
• Any federal and state laws about workplace safety and health standards that may apply to your case

Administrative and Court Appeals

If you or your former employer disagree with the decision regarding eligibility, you can appeal to your state's unemployment agency. There's usually an administrative hearings board or commission to handle these appeals. In most states, such a review board will only look at the evidence given at the referee or administrative hearing. In other words, you may not be allowed to bring up new evidence or arguments.

It's possible to appeal the decision to your state's court system in extreme cases. The legal standard for winning at court is usually quite high. You'll have to prove that the administrative appeal board ignored the law or that there wasn't enough evidence to support the decision.

Benefits

Regular unemployment benefits are paid for 26 weeks in most states. Extra federal benefits are available in areas where the unemployment rate is high (based on pre-set federal standards).

While receiving unemployment benefits, you must be capable of and available to work. You must also actively look for a job each week. That is, you need to contact a certain number of potential employers about current job openings.

Your state may provide training programs and other assistance finding a job, depending on state and federal funding.

Questions for Your Attorney

• How much of your practice involves unemployment compensation claims?
• What's your success rate in challenging denials of unemployment claims?
• How long I can receive unemployment benefits in our state?
• Do I have to look for a job, attend interviews or complete other tasks to continue my eligibility for unemployment compensation?
• My former employer gave a false reason for firing me, and my claim was denied. What can I do?

Related Resources on Lawyers.com^sm

- Employment Discrimination FAQ
- Visit our Wage and Hours page for more articles and information
- Employees: Selecting a Good Lawyer
- Find a Labor and Employment Lawyer in your area
- State Unemployment Insurance Web sites
- Visit our Life Event: Losing a Job page for more information
- Visit our Employment message board for more help

Related Web Links

- State Unemployment Information