What to Do If You're Denied Unemployment Compensation Benefits

It may feel like things can’t get any worse after losing a job. But what if you also just learned that you’ve been denied unemployment benefits? As you face what’s next, this can be a scary time. But don’t panic. These determinations are almost always appealable, and there are often several good reasons for reversing a denial.

If you’ve received notice that your claim for unemployment compensation has been denied, please consider reaching out to a qualified employment attorney licensed in your state. They can help you understand your options. That way, you can determine the best way to proceed and regain control of your future.

In this article, we’ll go over some information to keep in mind if you’ve been denied unemployment. Let’s start by reviewing the basics behind unemployment benefits.

What Are Unemployment Insurance Benefits?

Unemployment insurance benefits are a type of financial help for people who have lost their jobs through no fault of their own. These benefits provide temporary income to workers who are actively looking for new employment. They’re intended to cover basic expenses while someone looks for a new job. In this way, they support both individuals and the economy.

The state and federal governments administer the unemployment insurance program. Employers pay taxes to fund the program. At the federal level, the Department of Labor (DOL) oversees and coordinates it. State agencies, like California’s Employment Development Department (EDD), manage the program by handling claims, determining eligibility, and distributing benefits.

Eligibility

Each state has its own set of eligibility requirements for unemployment compensation. Still, there are common criteria across most states. For example, you’re generally not eligible for unemployment if you quit your job without good cause. Getting fired by your former employer for misconduct also typically results in disqualification.

Generally, you must have become unemployed through no fault of your own and due to reasons beyond your control, like layoffs, business closures, and reductions in force. Other common eligibility requirements include:

• Employment history: You must have worked a certain amount of time and/or earned enough wages during a base period, which is typically the first four of the last five completed calendar quarters.
• Active job search: You must be actively looking for new employment and able to provide evidence of your job search activities.
• Availability for work: You must be physically able and available to work each week.
• Willingness to work: You should be ready and willing to accept suitable work immediately.
• State registration: Most states require you to register with their job or other employment services.
• Social Security number: You typically need a valid Social Security number to claim benefits.

The benefits amount and for how long you can receive them also vary by state. It’s usually a portion of your previous wages for a limited period, often up to 26 weeks. During times of high unemployment, like a recession or pandemic, these benefits might be extended.

Obtaining Unemployment Benefits

To get unemployment benefits, you first need to file an unemployment claim. This involves providing your basic contact information, like your phone number, and details about your work history and job loss. You can usually complete this process in person at the state’s unemployment office or online at its official website.

The state will then review your application to ensure you meet the eligibility requirements. If approved, you'll start to receive biweekly or weekly benefits. And you’ll typically need to file weekly claims to confirm ongoing eligibility.

If You’re Denied Benefits

In some cases, a claimant may be denied unemployment benefits. The state usually sends a written notice explaining this decision and the basis for the denial.

Common reasons for denial of unemployment benefits include:

• Voluntary departure without good cause
• Termination for misconduct
• Insufficient earnings/time worked
• False statements on your application/claim
• Lack of Availability
• Failure to meet job search requirements
• Refusal of suitable work
• Self-employment
• Other compensation

Some states consider certain types of severance pay to be compensation that can temporarily disqualify you from receiving unemployment benefits.

Regardless of the reason for your denial, you usually have the right to appeal the decision.

Appealing Denied Unemployment Benefits

Under many circumstances, you’ll want to appeal the denial. The unemployment appeal process can vary by state, but it typically begins with your written request for an appeal within the specified timeframe. This is usually 10 to 30 days after the denial.

The unemployment office will then set a date and send you a Notice of Hearing. The hearing may be conducted virtually, by phone, or in person. Whatever the format, it allows you to present your side of the story to the hearing officer. This can be an administrative law judge or a review board.

You’ll want to come prepared with documents/evidence and perhaps even witnesses to support your case. At the hearing, you’ll essentially explain why you believe you should receive benefits and provide your evidence.

After the hearing has concluded, you’ll typically get a written appeal decision by mail. If you disagree with it, you may have the option to appeal to a higher authority or even a state court.

Is My Former Employer Involved?

For most appeals, your former employer has the right to participate in the hearing. In some cases, they may choose to contest your unemployment claim if they believe you're not eligible for benefits.

A former employer can also appeal an award of unemployment benefits. Employer appeals usually occur when the employer believes the award is unjustified. These appeals follow similar processes, though evidentiary burdens may vary depending on who filed the appeal.

Should You Appeal?

Whether you’re likely to succeed on appeal depends heavily on state law and the specifics of your situation. Still, there are some common scenarios where benefit denials may be overturned:

• Misunderstanding of facts: If the initial denial was based on incorrect information, like erroneous pay stubs or misinterpretation of circumstances, presenting clear evidence can lead to a reversal.
• Lack of evidence: If the original denial lacked sufficient supporting evidence, providing additional documentation during the appeal can change the outcome.
• Good cause/voluntary quit: If you can prove you had a compelling reason to leave your job, you might be able to reverse the denial.
• Misconduct mischaracterization: If you can show that your actions didn't actually constitute misconduct as defined by law, the hearing officer may overturn the decision.
• Eligibility misunderstanding: Sometimes, initial determinations misinterpret eligibility rules, and clarifying your situation can lead to approval.
• New evidence: Presenting new, relevant, and previously unavailable information can change the decision.
• Procedural errors: If the state made mistakes handling your initial claim, you may be able to secure a reversal.
• Change in circumstances: If a situation has changed your eligibility since the initial denial, the state might reverse the decision.
• Legal interpretation: Sometimes you can prevail by showing the state incorrectly applied the law to your situation.
• Employer no-show: If your employer doesn't participate in the appeal hearing, this can sometimes work in your favor.

Success in appeals often depends on presenting a clear, fact-based case that addresses the specific reasons for the initial denial. You’ll likely want to enlist legal help from an attorney well-versed in unemployment appeals in your state.

Getting Legal Advice

If you suspect you’ve been wrongfully denied unemployment benefits, consider speaking with a lawyer. You can share the details of your separation with them confidentially. They can review applicable state and federal law to help you understand your options.

These will often include appealing the decision. If you determine this is your best course of action, an employment attorney can provide a range of legal services to help make your efforts worthwhile. They can assist with case preparation and/or even represent you at the hearing.

Fortunately, Findlaw’s directory of employment attorneys can connect you with solid employment attorneys in your area. Just click on your state to view ratings and contact information for local experts experienced in the laws of your state. If you’d like, you can also narrow your search results by city. Either way, consider reaching out as soon as possible after receiving your denial letter so you can strategize for your best course of action.