State Unemployment Benefits FAQ

As I mentioned before, the various state unemployment benefits systems can be quite confusing.  Some, like Michigan’s according to one commenter, are quite good while others, like Georgia’s, are horribly inefficient.  The details also change from state to state, so it’s dangerous to take anything somebody in a different state says at face value.  That said, there are a few points that are more-or-less universal.  Still, please verify what you see here with your state’s Department of Labor because every state is slightly different.

Can I receive benefits if I received a severance package?

In general, you are ineligible for state unemployment benefits during a period covered by severance pay from your former employer.  You should file immediately just to get on the record, of course, but in most cases you remain ineligible for benefits until your severance period ends.  Contact your local DOL for the specifics on when you can and cannot receive benefits.

Do I have to keep a record of my job-hunting activities?

Yes, you must keep a record of job-related contacts to document your job-search activities.  If you do not keep adequate records, you may lose benefits eligibility if asked to prove you are actively looking for work.

Will I lose my unemployment benefits if I turn down work?

Maybe.  In general, you face losing benefits eligibility if you turn down work equivalent to what you were doing before coming unemployed.  That is, if you were a secretary before and turn down a secretary job, you could lose your benefits.  However, many states have clauses allowing you to turn down work without penalty if it pays substantially less and is in a substantially different line of work than your previous job.  That is, a former engineer is unlikely to be penalized for turning down a janitorial position.  Definitely check your own state unemployment benefits laws on this one, because some states don’t have this exception.

What is the maximum amount of time I can draw benefits?

In most states, you can draw unemployment benefits for a maximum of 26 weeks.  The exact number of weeks depends on your previous employment and your state’s laws.

Can I receive unemployment benefits if I quit voluntarily?

In many states, you may be eligible for unemployment benefits if you quit for “good work-connected reasons.”  One example of a good, work-connected reason is a material change in work conditions.  Another is non-payment for work already rendered.  The only way to know for sure in this case is to file a claim with your local DOL.

Can I receive unemployment benefits if I was fired?

Probably not, so long as your employer can show you were fired for failure to follow rules, orders, or gross incompetence.  If you think your case is a grey area, file a claim and see what happens.  You might get lucky.

Are unemployment benefits taxable?

Yes, state unemployment benefits are taxed as regular income.