Layoff Guide: Filing for Unemployment

Unemployment Insurance is a Safety Net

Jul 07, 2022

young woman applying to unemployment online late at night — Photo by Victoria Heath on Unsplash

In May 2022, there were 6 million unemployed people in the United States. Only 1.5 million of them submitted unemployment insurance (UI) claims. Some of these people definitely don’t qualify for unemployment benefits because they’ve been out of the workforce for a long time or they’re looking for their first job out of high school or college. Still, the number of people applying for UI should be higher.

In my opinion, there are 3 main reasons why Americans aren’t filing for UI:

Each state has its own barriers to qualify for UI and it can be a confusing process.
We don’t talk about UI as a normal part of our working life. Many people simply don’t know that they have this option.
Social stigmas put us off from taking “handouts” from the government.

I’ll get into reason #1 later in this article and I hope to provide clarity around reason #2 as well. When it comes to reason #3, you might not even realize that you hold some of these stigmas about unemployment and government support.

You might worry that people will think less of you if you’re the “type of person” who uses government welfare. Even worse, people might pity you because you’re unemployed. We put a lot of our self worth into our careers so using UI can feel like giving up something that only lazy people do.

Another concern you may have is that your unemployment will make you look bad to future employers. So instead of filing for benefits right away, you put pressure on yourself to find work immediately. If a new job doesn’t materialize right away, depression and shame can kick in. Now you’re stressed, depressed, unemployed, and have no UI benefits to keep you afloat.

Unemployment insurance is a safety net that keeps us in our homes and helps cover some of the costs of bills and groceries. It’s a temporary solution that offers peace of mind.

If you’ve been recently laid off, you should definitely apply for your state’s unemployment benefits.

Note: I’m not an employment lawyer. I’m not affiliated with the Department of Labor or any state’s unemployment insurance agency. Each state has different rules and requirements for UI so please contact your state’s agency if you have questions about the filing process.

If you know someone who could benefit from Human Worker’s Layoff Guide, please share!

What is unemployment insurance?

Unemployment insurance, also called unemployment benefits, or simply UI, is required by federal law and overseen by the U.S. Department of Labor. Each state administers their own program and pays recipients with funds collected from specific payroll taxes levied on employers. Most states will pay up to 26 weeks (6 and a half months) of UI.

Unemployment is intended for people who no longer have a job due to lack of work and due to no fault of their own. You can’t get UI if you’re fired for cause like breaking laws, harassment, or negligence. You also won’t typically qualify for UI if you quit your job, unless you can show that you quit for good cause.

To retain UI benefits over time, you must show that you’re looking for employment on a weekly basis. Some states want you to complete 5 job hunting activities a week. Others only require 1 activity per week. Some states even want to know how stable your past employment history is before they approve your UI.

Each state calculates how much UI you can receive based on a minimum amount of wage income (in other words, you need to have earned a minimum amount of money in the last year). Of course, each state calculates this amount differently and many states require applicants to wait a week before they can collect their first check. These benefits are capped and can range from less than $200/week to over $800/week depending on the state.

States can make it hard for unemployed Americans to receive UI. Some people, like real estate agents paid on commission, aren’t eligible at all for UI in most states and almost half of the states say that you don’t qualify at all if you’re still employed, even if your hours were reduced drastically.

To find the official UI website for your state, visit CareerOneStop and use the Unemployment Benefits Finder.

The site is sponsored by the U.S. Department of Labor and can help with job hunting, accessing training programs, and other resources. CareerOneStop also has specialized job advice for military veterans, inexperienced workers, convicted felons, workers aged 55+, and workers with disabilities.

Disqualification from receiving UI benefits

There are 3 main reasons someone would be disqualified if they submit a claim for UI. The first is if you’re fired for cause. In the U.S., your employer can fire you for any reason or no reason at all due to our at-will employment model. But if they report to the government that you were fired because you broke company policy or engaged in illegal behavior, you’ll be disqualified.

The second reason is if you quit without good cause. Each state defines this requirement differently, but in general, you can’t receive UI if you quit because you were dissatisfied with your job or employer. You’ll have a qualification phone conversation with someone from your state’s UI agency if you file a claim after quitting.

The third reason you can be disqualified is if you lie or have inaccuracies on your UI claim application.

Quitting with good cause

If you feel you were forced to quit because of major life events or serious problems at work, you can still qualify for unemployment benefits. Examples of a good cause include:

Becoming ill or needing to care for a family member who’s ill. If your illness doesn’t stop you from working entirely, but your employer won’t make reasonable accommodations for you, you may still qualify.
Bullying or an abusive work environment like if your employer wanted you to do something illegal or unethical. You will usually need to show that you tried to resolve the problem with your employer first, but they refused.
Safety concerns that your employer has not fixed
A large pay reduction
Breach of your employment contract

During the early stages of the pandemic, some states gave UI to people who quit their jobs due to mental health reasons. I quit my last full time role because of serious burnout that was affecting my mental and physical wellness. California approved my UI claim which allowed me to start my freelance writing business. It was a huge help!

mother holding her baby while applying for unemployment insurance online — Photo by Sarah Chai: on Pexels

What do I need to do to keep my UI coming?

You won’t receive benefits for 26 weeks with no strings attached. Job hunting, and proving that you’re job hunting, is required by all states. The UI agency wants to see that you’re applying to suitable jobs that offer similar wages or salaries as your past employers.

A suitable job also means completing duties inline with your prior experience. You don’t have to accept a job making half of your previous salary but there’s no holding out for your “dream job.” If you have an offer for a suitable job, you have to take it.

The work search requirements vary by state but the general idea is that you must have a minimum number of contacts with potential employers each week. You’ll also need to log your efforts into your state’s UI portal or keep them on file.

It’s crucial that you know how many activities your state requires you to complete each week and how often you need to record your activities. Depending on the state, it can be weekly, biweekly, monthly, or never–just keep a log of your activities in your personal files for future reference. If you don’t fulfill these requirements, you can be dropped from receiving UI benefits.

Here are a few examples of work search requirements by state:

Florida: 5 activities a week
California: 1 activity a week
Texas: Ranges from 1 to 5 activities a week depending on your county
New York: 3 activities a week

Work search activities can include:

Applying for a job that you’re realistically qualified for
Interviewing for a job
Joining on online job board and uploading your resume
Attending job fairs or networking events
Taking exams for relevant certifications
Registering with staffing agencies

After you’re approved for UI benefits, check your state’s requirements on what counts as a job hunting activity.

Final thoughts

Most people start job hunting right away because UI won’t–and isn’t intended to–cover all of your monthly expenses. For example, California gave out an average of $320 or less per week in UI benefits during 2021. The price of rent for a 1 bedroom apartment in Los Angeles is often over $1,000/month so this amount won’t cover rent, groceries, car payments, gas, and all other bills.