One of the most asked questions and the most confusing topics is “Can a fired employee collect unemployment payments?” What’s most interesting about this answer is that it’s both yes and no. Another polarizing factor is the stance that many people take on the issue. Show
So, what is the answer and how do you determine if you qualify for unemployment benefits after you’ve been fired from your job. Key Takeaways:
How Does Unemployment Work?The first step toward understanding this is to learn a bit more about unemployment and what it really is and what its goal is. You may hear the terms unemployment insurance and unemployment benefits used pretty interchangeably. That’s because they are the same thing.
Since 2020, the coronavirus has affected unemployment benefits by state and across the country. This can change the length of time you receive payments and the amount you’re eligible to receive. Since many businesses were shut down unexpectedly, unemployment rates rose dramatically during this time and an additional stimulus payment was added. Some states did a good job with supporting employees, others did not. Reasons for Ineligibility for Unemployment InsuranceSome people mistakenly believe that you get unemployment benefits, or the payout from the insurance, no matter why they’re unemployed. On one hand, they are right that every employer is required to pay in for your insurance. But on the other hand, they’re totally wrong about everyone being eligible for a payout. You can quickly see why this wouldn’t work for people who have quit their jobs. They could get hired one week and quit the next and then just sit on unemployment for 26 weeks until their check runs out and they’re required to get another job.
Rights of Fired EmployeesIf you’ve been fired from your job, you do have some rights. While most employees are considered “at will”, which means they can be fired at any time and for any reason – almost. Some terminations are considered illegal, in which case you may have a lawsuit and you may collection unemployment. These situations are:
If you’ve been fired, and justly so, you may not qualify for unemployment insurance benefits, but you do deserve your last paycheck. Some states have laws on how quickly that check must be paid. Severance pay is not legally required unless it has been promised to you in writing or orally. Many people who have been fired are concerned about their health insurance, especially when it’s funded by their employer. The Consolidated Omnibus Budget Reconciliation Act, or COBRA as it’s better known as, gives the employee and their insured family members the option to continue insurance for a predetermined period of time. You might be able to receive unemployment if you were fired or downsized due to no fault on your part. If you did something, or didn’t do something, that caused you to be let go from your job, chances are that you won’t receive benefits. Can an Employer Contest an Unemployment Claim?You might be surprised when you file your unemployment claim and get a notice that your ex-employer is contesting your benefits. They can do this and many of them do. One reason an employer would contest your claim is because they are financially penalized for having too many unemployment claims from their employees. Initially, employers are taxed at a set rate, but if they are generating more claims with their fired employees than average, they’ll have to pay a higher tax rate. On the other side, if they have fewer claims, their tax rate drops. If you find out your employer is denying your eligibility and contesting your claim, then you’ll also notice that you can fight back. The ultimate determination will come down to your state agency. You will be given a chance to defend yourself if what the employer says contradicts what you first presented to the unemployment office. Even if the agency decides you don’t qualify, you get another opportunity to appeal the denial. After that, some states let you proceed with a second appeal, while others do not. What Does “Fired for Cause” Mean?“Fired for cause” means that your employer can prove that they had a “reason” to terminate you from your job. There are many different reasons an employer can fire someone with cause but a few of them are listed below:
Again, there are many other reasons, but those of some of the most common ones. Your employer cannot just claim you were fired with reason, they typically have to provide some sort of proof. They are not allowed to say that you stole money without any proof that you did. If they have drawer counts, witnesses, or maybe video of the alleged incident, then they can fire you for stealing. When there is a termination for cause situation and the employer has documentation, then it is very unlikely that the employee will get unemployment compensation. Collecting Unemployment After Being FiredIf you’ve been fired, there are a couple different directions you can go in.
One thing to note here, as mentioned before, most employees are considered “at-will” employees. This means that they can quit their job at just about any time they want for any reason. Likewise, your employer can fire you at any time for any reason.
Unemployment After Being Fired FAQ
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