Federal Unemployment Insurance Laws About Quitting a Job
The Federal Unemployment Tax Act provides that the federal government collects a tax from employers to fund all state workforce agencies. Federal law requires each state to have a system for unemployment insurance, and each sets its own eligibility requirements. The federal government disburses the money to the states for each state to distribute according to its own law.
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Eligibility for Benefits
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In general, most states provide that unemployment benefits go to those unemployed through no fault of their own. Those who voluntarily quit a job without cause are not eligible.
Good Cause to Quit a Job
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The definition of a good cause to quit, also called "just cause" or "reasonable cause," varies by state. It can involve adverse working conditions, for example. If conditions are so bad that it is not reasonable to continue working, then quitting may be called a "constructive discharge" and the person will be eligible for unemployment benefits.
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Sample Case - Good Cause
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One Ohio court found just cause for an employee to quit after 12 days when he found that the job was not sales, as it had been described in the interview. In addition, the boss yelled at the employee daily. The court found the resignation justifiable and allowed for the employee to collect unemployment benefits.
Sample Case -- Not Good Cause
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Another Ohio case involved an employee who left work voluntarily after the boss had yelled at her for not answering a bell soon enough. She returned her uniform the next day without trying to clarify her situation with the employer. The court found that she had voluntarily quit her job.
State Law
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It is important to check state law before quitting a job. The state's cases will help to decide whether the circumstances constitute good cause and will allow the person to collect unemployment benefits.
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