Unemployment benefits are eligible to certain employees upon separation of employment. These benefits are available through each state’s unemployment benefit trust fund and eligibility and benefits are based on the state’s specific guidelines.
Who Can Apply
In order to receive unemployment benefits, an employee must meet eligibility requirements, which largely depends how he or she departed from his job.
Layoff: Employees who lose jobs because of layoff or work reduction are typically eligible to collect unemployment benefits.
Involuntary Termination: Depending on why an employee was terminated from a job determines eligibility to collect benefits. If an employee was terminated because of misconduct, then he will generally not be eligible for benefits. Disqualifying misconduct includes:
- Revealing company trade secrets
- Company defamation
- Sexual harassment
- Dishonesty
- Intoxication on the job
- Extreme insubordination
- Chronic tardiness
- Excessive unexcused absences
However, if an employee was terminated for a more minor infraction, he will be more likely to claim unemployment benefits. Actions that are not serious enough to disqualify collecting unemployment include:
- Poor work habits
- Poor relations with coworkers
- Inability to make sound judgments
- Lack of work skills
Voluntary Termination: Employees who leave their jobs for their own reasons will only be able to apply for benefits if the reason is considered “good cause.” Job dissatisfaction is not considered a good cause for quitting, but some good cause reasons include:
- Workplace causes harm or injury to health
- Intolerable working conditions (i.e. sexual harassment)
- Employee has been given option to quit or be fired
Every state has more specific laws on who can collect unemployment. Check with your state’s unemployment benefit program to learn what else determines eligibility.
Your Rights as an Employer
Each person who wishes to collect unemployment benefits has to submit an application, which will then be reviewed by your state’s unemployment office. This office makes the determination who receives unemployment, and will then inform your company if a former employee is eligible to collect unemployment. As an employer, you have the right to contest a claim if you feel a former employee is ineligible to collect benefits. Many companies will allow former employees to collect unemployment benefits even if they were fired due to misconduct; they do this to avoid litigation if the former employee were compelled to sue. However, as an employer, if you choose to contest an unemployment claim, you need to have good cause to do so.
If an employee was terminated for misconduct, to avoid a negative impact to your unemployment insurance rates, you should consider contesting the claim. Also, if you suspect an employee is going to file a wrongful termination suit, contesting the claim might give you details about the employee’s side of the story. If you do determine to contest a claim, contact your state’s unemployment office for specific information about your state’s law. Be sure to proceed with caution, as these types of battles can be timely and costly.




