Unemployment Insurance

Each state has its own system of Unemployment Insurance (UI) that provides benefits to those who qualify. The main rule with collecting UI benefits is that you must be ready, able and willing to work. Most states allow you to apply online or by phone. If you’re in a union, they may be able to help you or assign you a representative dealing with Unemployment Insurance. Generally, you should apply for UI benefits immediately after losing your job. Usually you won’t be offered benefits retroactively -- despite your unemployment status and UI eligibility -- so it’s best to apply as early as possible.

The UI application will require you to fill out a variety of personal information, including contact numbers, home address, social security number and contact information for employers during the previous 18 months.

In the application, be honest about why you are unemployed. If the unemployment commission determines you lied, you can be penalized or even charged with a crime. For that reason, truthfully state why you were fired and lost your job, and if possible, mention how you tried to correct the situation or to maintain your job. If you disagree with the reason why you were fired or with some accusation your employer made, specify that in your initial application. You may be asked more detailed questions by someone from the Unemployment Insurance system after your initial application is received.

If you quit your job, you may not be eligible for UI benefits. But if you quit for “good cause” -- some grievance or incident that would cause someone to quit -- then you may be eligible. For example, unsafe working conditions, an employer refusing to pay wages, abuse or harassment, a request by an employer to do something illegal or a significant demotion may all constitute good cause, but you must give the employer a chance to remedy the situation before quitting. If covered by a collective bargaining agreement (CBA), you should ask your union whether refusing to work under those conditions is allowed under the agreement and if they can help with the situation. (A CBA is a negotiated agreement between a labor union and an employer that sets terms of employment for members of that union and provisions for wages, vacation, hours, working conditions, health insurance, benefits, etc.)

If you quit for certain personal reasons, such as taking care of a baby or sick relative or moving to a new city to be with a spouse, you may be eligible for UI benefits, but you still must be ready, willing and able to work. If medical problems caused you to quit, you may still be able to collect UI benefits if you are able to do light work or to work in a related field.

If you were a part-time employee or had your full-time job reduced to a part-time job, you may be able to collect at least partial benefits.

There are various reasons for termination that can affect your ability to collect UI benefits. Each case is different; even if your employer cites a rules violation as reason for your firing, you may still qualify for UI benefits. Different standards are employed among the states that may make those fired for “just cause” or “willful misconduct” ineligible for benefits. Those standards can be defined as follows:

• “Just cause” - disobeying company rules, bad job performance
• “Willful misconduct” - deliberate violation of employer’s rules, consistently missing work or arriving late, violating standards of behavior
• “Faultless termination” - company downsized or position was eliminated; no wrongdoing on the part of the employee

States that use the willful misconduct standard are considered more lenient, as they allow those who were fired with just cause -- meaning for disobeying a rule or poor performance -- to still collect UI benefits. In any case, there’s no real downside to filing for benefits, and you can appeal a claim that is denied or contested by your employer.

Once you are receiving UI benefits, you will have to continue filing the necessary paperwork and claims weekly or bi-weekly, depending on what’s required by your state’s unemployment commission. You will also have to show that you’re actively seeking work, usually by checking in with a UI representative. Keep copies of your resume, job applications and interview schedule as proof that you’re engaged in a job search. If you have any questions about your UI benefits or the application process, contact your state’s unemployment commission.

COBRA COBRA, the Consolidated Omnibus Budget and Reconciliation Act, offers assistance to those who have lost their jobs, helping them to retain health insurance. The program applies to employers with 20 or more employees. For 18 months, or until you’re eligible to participate in another health plan, your employer must allow you to continue participating in its group health insurance plan with the same coverage. Under COBRA, you have to pay any premiums for yourself and your family. And if you were fired for “gross misconduct,” you may be unable to get COBRA benefits. In order to take part in COBRA, you must notify your employer that you want to elect to stay in the plan. Send a written notice with a check for the first month’s premiums to your employer.

For more information about unemployment and related topics -- including COBRA -- check out the links on the next page.