Why Am I Disqualified From Receiving Unemployment Benefits?

What Are the Eligibility Criteria for Unemployment Benefits?

Each state has its own eligibility requirements for unemployment benefits. Generally speaking, you will be eligible to receive unemployment benefits if you are:

• Unemployed through no fault of your own

• Ready, willing, and able to work

• Actively seeking work

State-Specific Guidelines

Each state runs its own unemployment insurance program, so the rules and benefits can vary depending on where you live.

Your state’s unemployment agency is the best place to get up-to-date information about who qualifies, how to apply, and what deadlines you’ll need to meet. They can also explain how long your benefits might last, how severance pay affects your eligibility, and when your benefit year begins and ends.

The unemployment agency is usually part of your state’s Department of Labor, Workforce Development, or Economic Development. A quick online search with your state’s name and “unemployment benefits” can help you find the official site.

Common Reasons You Might Not Qualify for Unemployment Benefits

Everyone’s situation is different, but there are some common reasons why people are denied unemployment benefits through their state’s program.

You may be disqualified and ineligible for unemployment benefits if you:

• Quit without good cause

• Were fired for misconduct

• Didn’t earn enough in your benefit year

• Weren’t employed long enough

• Were self-employed

• Provided false information on your unemployment compensation application

• Did not actively look for a new job

• Refused a suitable job

Quit Without Good Cause

If you quit for good cause, you may be eligible for unemployment compensation. If you quit without good cause, you aren’t usually eligible for unemployment compensation.

What is good cause? Each state has its own definition. Some states are more restrictive in defining good cause, while others, like California, are more generous. 

State unemployment insurance agencies generally don’t consider the following to be good cause:

• Quitting because you are getting married

• Quitting because you are attending school

• Quitting or resigning due to a labor dispute

• Quitting, resigning, or failing to show up for work because you’re dissatisfied with your job, your company, or your boss

• Quitting to pursue other interests

• Quitting to travel

• Quitting to start a charitable organization

Good cause usually has to be a work-related reason for leaving. Examples of good cause are:

• You had a concern for your personal safety at your job.

• Your pay was drastically reduced.

• You were subject to unbearable or abusive working conditions such as sexual harassment or criminal behavior.

• You or a family member had an illness or a medical emergency and your employer failed to make accommodations.

• You lost your means of transportation.

• Your employer didn’t hold up their end of an employment contract. (This only applies if you’re not an at-will employee.)

Keep in mind that you usually have to try to resolve these issues before you quit for them to qualify as good cause. 

Fired for Misconduct

Getting fired doesn’t always mean you’ll be denied unemployment benefits. It depends on why you were let go.

If your employer fired you for misconduct, your state may disqualify you from getting benefits. Misconduct usually means serious behavior like breaking company rules, stealing, harassment, repeated unexcused absences, using drugs or alcohol at work, or purposely not doing your job.

But not every firing counts as misconduct. If you were let go because you struggled to meet performance goals, made honest mistakes, or had excused absences with proper notice, you may still qualify for benefits.

Each state defines misconduct a little differently, so it’s a good idea to check with your state’s unemployment agency to see how the rules apply to your situation.

Insufficient Earnings or Length of Employment

To qualify for unemployment benefits, most states require that you worked long enough and earned enough money during a certain time frame. This time frame is called your base period, and it’s usually the first four of the last five completed calendar quarters before you file your claim.

If you only worked for a short time — like a month — or didn’t earn enough during your base period, you may not be eligible for benefits. Again, each state sets its own minimum earnings and work history requirements.

When you apply, the unemployment office usually checks your total wages during your base period using the earnings reported under your Social Security number. That’s how they figure out if you qualify and how much you may receive.

Self-Employment

Usually, if you are self-employed or an independent contractor, you aren’t eligible for unemployment benefits.

You can determine whether you are an employee or an independent contractor by looking at your pay stubs. If you have Social Security taxes and unemployment insurance taxes taken out of your earnings, then you are an employee.

False Information

When you are applying for unemployment assistance, it is important to submit accurate information. If you provide false information or are otherwise inaccurate in your reporting to your state agency, you may be disqualified from receiving benefits.

Failure to Actively Look for a Job

You may initially qualify for unemployment benefits but become ineligible if you aren’t actively looking for a job. You may also be disqualified from receiving unemployment compensation if you refuse an offer of suitable work.

Actively looking for a job means that you are looking through job sites like Indeed or LinkedIn and applying to job listings. It also means that you are in contact with people in your professional network and asking around if there are jobs available and if your contacts would give you a referral for that employer.

How Do You Prove Eligibility for Unemployment Insurance Benefits?

The best way to prove that you’re eligible for unemployment insurance benefits is to keep good written records of what happened when you lost your job, what you did after you lost your job, and what you have been up to since losing your job. The reason for your job loss is important to the state unemployment insurance agency and how they interpret state law.

Sometimes you may not be clear about why you lost your job. An employer may say you acted inappropriately when you really didn’t, or they may indicate that you quit a job when you were actually laid off or fired without a good reason. This is why collecting evidence and documenting everything related to your job separation and your job application efforts are critical to proving your eligibility while you are unemployed.

Appealing a Denial

If you're denied benefits, you have the right to appeal. If you file an appeal, you are responsible for showing that you are, in fact, eligible for unemployment benefits.

If you quit for good cause, it is up to you to demonstrate that you did have an illness, for example. Or if there were abusive or unsafe working conditions, you need to show that you attempted to address them before quitting and that your former employer failed to do anything about it.

Let’s Summarize...

Receiving unemployment benefits and maintaining your eligibility are important for your financial well-being after a job loss. Do your best to keep track of what happened when your employment ended at your last job. Keep records of your job search efforts and stay positive.

You can avoid being disqualified from receiving unemployment benefits if you put some effort into staying on top of things. Actively look for work, learn about the rules and regulations in your state, and know when to use your resources. This way, you can avoid getting a disqualifying letter from the state unemployment office or having your weekly benefit amounts cut off. These benefits can help you stay afloat financially until you get stability back with a new job.