Frequently Asked Questions About Unemployment Benefits

Workers who lose their jobs through no fault of their own can take advantage of unemployment insurance (UI) benefits. These benefits provide employees with temporary financial assistance while they look for a new job. 

The unemployment insurance program is a joint state and federal effort. Each state administers it separately. Although federal law provides general guidelines through the U.S. Department of Labor (DOL), states may have additional eligibility requirements. 

This article answers some frequently asked questions about unemployment compensation benefits. If you've been laid off and are having issues collecting unemployment, it might help to speak to an employment law attorney in your area. They can guide you through disputes with your state's unemployment agency and protect your interests. 

Who is Eligible to Apply for Unemployment?

State and federal unemployment insurance programs make unemployment benefits available to those who lost their jobs without fault. In most cases, this means being laid off or furloughed. Voluntarily quitting your job or being fired due to misconduct will generally disqualify you for UI benefits. 

In evaluating your unemployment benefits claim, state laws often examine:

• The unemployed worker's wages
• The reason for job separation
• Ongoing eligibility requirements

In general, you'll qualify for unemployment insurance benefits if you:

• Lost your job without any wrongdoing on your part: For example, your position was eliminated during company downsizing. We discuss other qualifying forms of job separation below. 
• Meet the salary and work requirements: State laws lay out requirements for salary earned or work hours spent within a certain period, which state laws refer to as the “base period."
• Can legally work in the United States: Either as a U.S. Citizen or with valid work authorization.
• You are available for reemployment: You're willing and able to take on a new job. 

Additional requirements may also apply depending on where you live. States create their own eligibility requirements based on general guidelines set by federal laws.

What Types of Job Separation Qualify for Unemployment Benefits?

You should qualify for unemployment benefits based on job separation if you find yourself in one of the following situations: 

• Your employer reduces your working hours: If you are a full-time employee and your employer reduces your working hours, you may apply for unemployment benefits. However, a reduction in working hours made at your request or due to disciplinary action does not qualify.
• You've been laid off: Layoffs can qualify you for unemployment benefits. For instance, the employer may run out of work, remove your position, or shut down the business.
• You're forced to resign: This is known as constructive dismissal. Constructive dismissal occurs when an employer makes the working environment intolerable for the employee and pushes them to resign. It is an indirect form of firing.
• You're wrongfully terminated: Wrongful termination occurs when an employer fires an employee for reasons that violate federal and state laws. The employer commits discriminatory conduct, breach of contract, or retaliation against the employee for reporting workplace violations or subjecting employees to unsafe working conditions.

In all of these situations, the employee loses their job for reasons beyond their control. 

You may still qualify for unemployment even if you're fired from your job, if the reason for dismissal was something other than serious misconduct. 

State laws vary in how they define misconduct. Many will not allow a person to collect unemployment if they are fired for alcohol or drug problems, such as showing up to work drunk. But someone who is let go because they turn out not to have the necessary skills for the job can probably still collect unemployment. 

What Disqualifies You From Unemployment?

Each state independently reviews the claimant's eligibility and disqualifications for benefits payment. However, denial of unemployment insurance claims is usually due to one of the following:

• Termination due to misconduct: Misconduct involves either a failure to act or an intentional action that breaks company rules. Examples include theft, safety violations, excessive unexcused absences, or failing a drug test. 
• Voluntarily quitting without good cause: An employee might have "good cause" to quit if they are being harassed or their working conditions are unsafe. But quitting because you don't get along with your boss will not qualify.
• Inability or unavailability to work: You must be willing, ready, and able to accept suitable employment. If you're physically unable to work due to illness or injury, you won't qualify for unemployment benefits. However, you can likely get assistance through workers' compensation (for work-related injuries), Social Security Disability (SSDI), or private disability insurance. 

You can also be denied benefits later on, after you've collected for a while. For example, your benefits might be terminated if you:

• Fail to actively look for a new job
• Decline an offer for suitable work
• Intentionally provide false statements or information to receive benefits

If you are denied unemployment because your employer claims you were fired for misconduct, you can appeal the decision. Your local unemployment agency will schedule a hearing where you can provide evidence to the contrary, such as a termination letter. You can also have a lawyer represent you in these hearings. 

How Do I Apply for Unemployment Insurance Benefits?

To receive unemployment insurance benefits, you must submit your claim through the unemployment insurance office in your state. Contact the unemployment insurance office in your state as soon as you lose your job. You can usually file your claim in person, online, or by phone.

When filing your claim, you must provide specific details, such as your date of past employment and address. It is best to provide correct and complete information to avoid delays in receiving unemployment benefits.

What If I Work In a Different State Than Where I Live?

If you worked in multiple states or you worked in a different state from where you currently live, start by contacting the agency where you live. 

The unemployment insurance agency in the state where you currently reside can guide you on submitting your claim to other states.

How Much Money Can I Get From Unemployment?

Unemployment insurance benefits are a partial wage replacement. The weekly benefit amount generally will not match the pay you received while working. In most states, you can expect to receive around 40-60% of the amount you got paid weekly at your job. There is also a cap on benefits set by the state. 

For example, in Minnesota, job seekers on unemployment receive about 50% of their previous average weekly pay. Payouts through October 2025 are capped at $914 per week. 

Note that under federal income tax laws, unemployment benefit payments are taxable. Thus, you must declare it on your federal tax return. But you can choose to have taxes pre-withheld by the state's Unemployment Insurance agency.

When Will I Receive My First Payment?

You will generally receive your first benefit payment within two to three weeks after filing your unemployment claim. For example, let's say you lost your job and filed for unemployment benefits on June 1. In most states, you would receive your first benefit payment between June 15 and June 22, two to three weeks after filing your unemployment claim.

However, some states have a one-week waiting period. 

If you reside in a state that requires a one-week waiting period, you cannot receive your unemployment benefits immediately. Using our example above, if you submitted your claim on June 1, the first week (June 1 - June 7) is the “waiting period." There will be no benefit payment for this week. 

Your benefit payment will begin in the second week of your unemployment. So, the first check would cover June 8 to June 14. You would likely receive it around June 22 (or as late as June 29), after review and processing.

How Long Will My Benefit Payments Last?

In most states, benefit payments are payable for up to 26 weeks (six months). You may be eligible for extended benefits, particularly during a high-unemployment period. Some states offer extra benefits in certain situations.

What Should I Do While on Unemployment Insurance?

While on unemployment insurance, you have to actively search for a new job. Consider subscribing to job newsletters. You can also document the job applications you sent out to prepare for potential audits of your job hunt.

Can I Turn Down a Job Offer and Still Get Unemployment?

In some cases, yes. You may be able to refuse a job offer and still keep your unemployment benefits under certain circumstances. Your local unemployment agency will determine whether the job offer was for "suitable employment." 

For example, you could likely turn down the following job offers and still get unemployment:

• The offered wage, working hours, or work commute are worse than your previous job
• The new role is more hazardous than our previous employment
• Your training and experience make you overqualified

Keep in mind that things like commute standards may vary in every state. For instance, in California, the laws assess the commute route based on average travel time for local workers. Meanwhile, other states might follow stricter guidelines, so looking into the local laws is essential.

What Happens if My Unemployment Insurance Claim is Denied?

You can file an appeal if your state unemployment insurance office denies your claim. Similarly, your former employer can also contest the state's decision on your eligibility for benefit payments. You should file your appeal within a deadline, often reflected in your state laws.

Seek Legal Advice from an Employment Attorney

Unemployment benefits can be difficult to navigate. The rules vary in every state, and the factors surrounding each case could affect your claim. If you are facing difficulties with your unemployment insurance claim or need further clarification on some of your questions, seek legal advice.

Consulting with an employment law attorney can provide you with the guidance that you need to help you better understand your rights. They can also help you take the necessary steps to better secure your insurance claim. 

FindLaw offers a directory of employment attorneys in cities across the United States. Here, you can find contact information, reviews, and other info about employment attorneys near you. Do not hesitate to reach out to someone who can advocate on your behalf.