Unemployment insurance (UI) is a vital safety net for workers who have lost their jobs through no fault. The program is primarily managed and funded by states, with some federal oversight.
Each state sets its own rules on worker eligibility and other issues. These include the duration of benefits, employer tax rates, and nonmonetary requirements.
What is Unemployment Insurance?
Unemployment insurance (UI) pays temporary financial assistance to jobless workers. UI is funded by employer and worker contributions from specific payroll taxes collected to provide UI benefits to eligible individuals who meet state work and wage requirements. Each state administers its UI program within guidelines established by federal law.
You must have lost your job through no fault and meet the other eligibility requirements in your state’s unemployment insurance law. These include:
You must be available for work and actively seeking it. This includes registering with your state’s workforce agency and attempting to obtain new employment as directed by the agency. You must certify each week that you have searched for work and met the other qualifications of your state’s UI laws.
Most states also have a “good cause” requirement, which requires that you quit your job for a reason related to your work. Examples might include unsafe or intolerable working conditions that could not be remedied or compelling reasons to relocate your family.
During recessions and early stages of recoveries, the Federal government has created temporary, fully-funded programs that provide additional weeks of benefits above a state’s regular UI program. These programs have primarily run their course since the end of the Great Recession, and efforts to renew them have been unsuccessful.
Who is Eligible for Unemployment Insurance?
There are two primary requirements to qualify for unemployment benefits: (1) you must meet state-mandated thresholds for either earned wages or time worked in a base period, and (2) you must have been separated from your work due to no fault of your own. Each state has its program and guidelines, but all follow federal guidelines. If you meet the state’s eligibility rules in New York, you must file a claim with your local Department of Labor office as soon as possible after you become unemployed. You can file your claim in person, by phone, or online.
To receive unemployment insurance, you must also certify that you are still out of work and looking for employment each week. You must approve each week to maintain your benefits. You can find information about certifying in your local UI Center’s Handbook. You must also engage in job-seeking activities by applying for suitable work when requested by the UI agency, and you must accept timely work that you’re offered.
When the economy slows, many people experience involuntary layoffs and unemployment. UI benefits are designed to support those workers by adding money to demand and raising employment over what it would have been without the benefit. The Congressional Budget Office has found that unemployment benefits boost overall economic demand and increase jobs over what it would have been in a recessionary environment.
How Do I Apply for Unemployment Insurance?
Generally, you file for unemployment benefits with the state where you worked during your base period. If you worked in multiple states or are unsure which state you should file against, contact the Department of Labor to find out how to determine which state you should file against. You can also file your claim in person at the Job Center closest to your current residence or the state employment office in your area. If you are applying for unemployment, read all the information provided to you carefully and provide accurate information to avoid problems.
There are two primary requirements to qualify for unemployment insurance: meeting state-mandated thresholds for earned wages or time worked during a stated base period and determining that you are actively seeking work. The Department of Labor oversees the basic unemployment insurance program, but each state and territory sets eligibility rules, benefits levels, and other terms and conditions.
Typically, benefits last 26 weeks during one year. You must meet the weekly active-seeking requirement by certifying through your state’s website or phone system to keep receiving them. You must also report any job offers you decline and your monetary determination (calculating the amount you can receive each week). You can choose to have taxes withheld from your weekly payments if you’d like.
What happens if I am denied Unemployment Insurance?
You can be denied unemployment benefits for a variety of reasons. A common reason is that you need to work for more time or earn enough money to qualify for benefits. Each state has different requirements for how much you need to work and make before you can collect. It is essential to understand how these requirements work before filing your claim.
You may also be denied unemployment benefits if your former employer believes you are ineligible or receiving too many benefits. Employers are vested in ensuring that only legitimate claims are paid, as they pay taxes on the benefits they provide their employees.
If you are denied unemployment benefits, you will receive a notice of determination from the Department of Labor explaining why. The notice will also explain how to appeal the decision.
It would help if you prepared to file an appeal by gathering any documentation you have that supports your claim. This includes attendance records, time sheets, pay stubs, notes, human resources files, and other documents supporting your argument. It would help if you were prepared to answer questions from the administrative law judge who will hear your case. The judge will decide after the hearing and send you a copy of the decision.