Unemployment Compensation

Unemployment compensation insurance benefits are based on both federal and state programs and are 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 which follow federal standards.

Eligibility

To qualify for unemployment compensation, you must have a record of a minimum amount of earnings over a set period of time, usually the last year.

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

• Quit without what's called "good cause"
• Were fired for "serious misconduct"
• Are self-employed or attending school
• On strike from your job
• Are unavailable to work due to illness or other circumstances

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

• Unsafe or unhealthy working conditions
• Being asked to perform an illegal task
• Harassment due to your gender, age or ethnic background

In some states, "good cause" can sometimes include personal circumstances which force you to leave the job, such as 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.

What type of job misconduct is serious enough to prevent you from qualifying for unemployment compensation? It must be activity that goes beyond simple poor judgment or personality conflicts. Examples of serious misconduct that will prevent you from getting unemployment compensation 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(link) as soon as you lose your job, as it sometimes takes several weeks after filing to start receiving payments.

Your state's unemployment compensation program will first decide whether you're eligible for benefits, based on information provided by you and your former employer. Most states require you to file a written "objection" within one to two weeks of receiving notice that your claim has been rejected.

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 who is usually referred to as a "referee" or a "hearings administrator." This is your one and only chance to make a record as to why you should be awarded unemployment compensation benefits.

If you can afford a lawyer to represent you at the administrative hearing, it's a good idea. A lawyer familiar with state laws and regulations can help you present your best evidence. In some metropolitan 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: