The Reasons For Denial Of Unemployment Benefits

However, the timing of any denial can be relevant to identifying special reasons to stop benefits in their tracks.


So here we go with the reasons that consistently pop up and in order of when they pop up.

Monetary Reasons

You must at least meet the minimum earning requirements and those earning must be from what they call covered employment.

Problems arise when the wages reported to a state by an employer don't match what you really earned in your base period.

An employer is required to report wages accurately and pay UI tax on all covered employment up to the state wage base on each employee.

If you were found ineligible for benefits due to a monetary problem you should appeal and then figure out why this has occurred and what you need to prove to show your claim was valid.

The easiest way may be to just submit paystubs, but occasionally the problem might be due to how your employment was classified by an employer .. to avoid paying UI taxes.

If this is the case, you'll definitely need to know which test your state uses to determine covered employment vs. self employment to develop your argument for the appeal hearing.

Click here for more about monetary problems.

Separation Reasons

All valid claims receive two initial determinations at the start of a claim. The monetary, which examines earnings and the non-monetary, which examines the reasons for the separation.

It is the non-monetary determination which causes most denials of unemployment benefits and the reason for most appeals are about whose fault it really was that you're no longer employed.

The reasons for separation are very limited. You either quit, got fired or you were laid off due to a lack of work.

But, the bottom line is always .. whether you can prove you lost your job through no fault of your own.

What follows are the most common separation issues.

Voluntary Quit or Leaving of Employment

"Did the claimant voluntarily quit employment with or without good cause?"

The reasons you may think are good cause to quit be damned, it's going to be up to you, the moving party to explain why you had good cause to quit and according to how the intent of the UI laws have been interpreted by your state.

Not even special provisions in UI laws creating exceptions for personal reasons can guarantee you'll get benefits if you don't know how to present a compelling legal argument.

You should be a reasonable person focused on the interpretations of the laws to prevail at your appeal hearing.

Those that quit a job will be assigned the initial legal burden of proof because they moved to end the employment first.

This is the reason so many who quit a job are denied unemployment benefits .. They don't know they have the burden, let alone how to fulfill the heavy burden of proving facts.

Fired for Willful Misconduct

Good cause to fire a person has to be for willful misconduct connected to the work.

The legal burden of proof will now be shifted to the employer because they became the moving party when they chose to end the employment. The reason has to be misconduct.

Given that the United States recognizes a doctrine of common law called At Will Employment an employer doesn't need a good reason to fire you anymore that you need one to quit.

However, to avoid paying a higher unemployment tax rate, an employer may regularly appeal to an unemployment hearing, citing misconduct as the reason whether or not that was the reason.

Laid Off Due to a Lack of Work

If you were laid off for a lack of work you should have paperwork from the employer stating so .. if you don't ask for it.

It is the only reason for a separation that inherently has no argument to say you were discharged for misconduct because a lack of work is not your fault.

Ethical employers will provide you with a termination notice citing lack of work as the reason.

Other employers though, may blindside you when they tell the unemployment department the reason was misconduct.

This creates a problem for you because it makes you look like you misrepresented facts to obtain benefits.

If this happens to you .. appeal immediately and then prepare to disprove the assumption you lied.

Other reasons that may cause a denial when laid off have to do with deductible income from UI benefits, such as severance pay, vacation pay, or backpay.

Additionally, in some states, you may be denied benefits if you accepted an offer to voluntarily resign in lieu of being laid off.

Denial Due to Conditional Unemployment Eligibility

• Able and Available
  Is the claimant able and available and actively seeking work



• Suitable Work and/or Refusal of Suitable Work
  Did the claimant refuse to accept or quit suitable work subsequent to the beginning of a claim?



• Complying With Job Search Requirements
Many states require you to look for full time work .. even if you have only ever worked part time. And if your state requires you to keep a job search log, be prepared for a random job search audit at anytime while collecting benefits.


• Misrepresentation of Material Facts
  Did the claimant willfully misrepresent facts to obtain benefits? This could be an additional issue at any time during your unemployment claim .. and to be more succinct it could just as well ask .. Did the claimant lie?
  
  
• Unemployment Overpayment
This is the one issue that's worse than any other reason for denial of unemployment benefits ..

At least that's my thought because it means if you can't straighten it out at an appeal hearing you'll have to repay any benefits you've received.

The recovery provisions are also different whether you're found guilty of unemployment fraud .. vs a non fraud overpayment of unemployment benefits.

What To Do When Denied Unemployment Benefits

Getting unemployment is all about understanding the reasons for denial of unemployment benefits. It' not a unilateral system from state to state and how it works is not understood very well by those that work for a living.

It's a process to get benefits and it's determined by the individual facts of individual claims so I've taken the same approach to explaining .. Individuals questions.

FAQ's About Getting Unemployment Benefits
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