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Run » Human ResourcesCan fired employees collect unemployment? What if they quit? Here’s what employers need to know about unemployment eligibility for former employees.
When an employee is fired or let go, they may wonder if they can collect unemployment benefits. The answer is that it depends, since eligibility often hinges on why the employee was terminated. In general, unemployment benefit programs provide temporary income to people who are out of work due to no fault of their own. If someone was fired due to misconduct or violation of company policy, they might be ineligible to collect unemployment. However, it’s not always cut and dry. Below, we outline how unemployment works for businesses, factors that impact eligibility for benefits and the rights of fired employees. How does unemployment work?Unemployment insurance is a joint federal-state program providing short-term cash benefits to jobless workers while they seek new employment. State law decides who can receive benefits, how much and for how long, determined by looking at earnings and hours worked during a “base period.” Eligible workers in most states will receive cash payments for up to 26 weeks while they look for work. However, nine states provide fewer than 26 weeks and two states provide more. Extended benefits (EB) programs also exist in four states. Businesses fund unemployment programs by paying taxes known as FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act) taxes. Unemployment claims have the potential to trigger increased unemployment insurance tax rates for business owners, so it’s important to understand how the system works in order to avoid costly mistakes. [Read more: 3 Things You Need to Know About Employee Benefits] Who is eligible for unemployment benefits?Not everyone who is unemployed is eligible for unemployment benefits. Unsurprisingly, there are a lot of rules surrounding who can claim it, but in general, qualifying for unemployment is based on why the employee was let go. To be eligible, an individual must be out of work for reasons beyond their control. Examples include layoffs, downsizing, lack of available work or furlough, such as due to COVID-19. They must also meet work and wage requirements, plus any additional requirements mandated by their state. If an employee quits a job by their own choice, they typically won’t receive unemployment benefits. However, if employees can prove “good cause” to quit, such as unsafe working conditions or harassment, they may still be eligible. March 2020’s CARES Act expanded “good cause” possibilities to include pandemic-related reasons, like the need to care for a family member who tested positive for COVID-19. Those expanded benefits expired on September 6, 2021, yet there is always the possibility for more changes. Terminated employees have certain rights, one of which is the right to receive unemployment compensation, if they qualify. There are also several forms of misconduct that would exclude a fired employee from collecting unemployment benefits:
In some cases, intentional violation of company policy may also render an employee ineligible for benefits, but check with your state for specific rules. Rights of fired employeesPrivate employment is “at will” in most cases, meaning that employers can terminate their employees at any time, and for any reason—as long as it’s not illegal, discriminatory or in violation of a contract. However, terminated employees have certain rights, one of which is the right to receive unemployment compensation, if they qualify. Other rights of fired employees include:
[Read more: Are Small Businesses Required to Offer Health Insurance?] Can an employer contest an unemployment claim?As an employer, you have the right to contest an unemployment claim that you think is invalid or misleading. When a former employee makes a claim, you’ll receive a notice from the state or federal unemployment agency along with details surrounding the termination. At this point, you can determine whether to accept or contest the claim. Keep in mind, an employee also has the right to fight the denial of an unemployment claim. If you're going to contest an employee’s claim for unemployment, be sure that you have clear and proper documentation to back up your case (letter of termination, pay stubs, documented warnings, etc.) in order to avoid an expensive employment lawsuit. [Read more: How Do I Know It’s Time to Fire Someone?] CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation. Follow us on Instagram for more expert tips & business owners’ stories. To stay on top of all the news impacting your small business, go here for all of our latest small business news and updates. CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
A message from Get a free, customized commercial for your business in minutes Spectrum Reach Ad Portal creates a free 30-second commercial to promote your business on TV and streaming. Click here for your free commercial and to build your own ad schedule! Start here!Subscribe to our newsletter, Midnight OilExpert business advice, news, and trends, delivered weekly By signing up you agree to the CO— Privacy Policy. You can opt out anytime. Published October 19, 2021 How long does it take to get unemployment in Kansas?When will I be paid? If there are no issues on your claim, payments are normally received two to three business days after you file your weekly claim. (Please note: If you file your weekly claim on Sunday, payment is made on Wednesday.)
What disqualifies you from unemployment benefits in California?“An individual is disqualified for unemployment compensation benefits if the director finds that he or she left his or her most recent work voluntarily without good cause or that he or she has been discharged for misconduct connected with his or her most recent work.
How many weeks can you draw unemployment in Kansas?Filing for Unemployment Insurance (UI) is the first step for affected workers. It is available for up to 16 weeks.
Can I get unemployment if I was fired for performance in NJ?If you were fired or discharged from your job, you may not be eligible for benefits. A claims examiner will determine if there was any misconduct connected to your separation. There are two types of misconduct: misconduct and gross misconduct.
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How long after being terminated can you file for unemployment
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