Reasons Why an Unemployment Claim Can Be Declined

Unemployment is to be expected in any economy, but presents financial hardships to individuals in that economy who lose their jobs, particularly when a down economy makes it more difficult to find new employment. To provide a safety net for unemployed individuals while they are seeking new jobs, the government created the Federal-State Unemployment Insurance Program. Unemployed persons must meet certain criteria in order to receive the benefits of this program and may be declined for several reasons.

Unemployment Insurance Program

The Social Security Act of 1935 created the Federal-State Unemployment Insurance Program. This is a jointly-run program that provides temporary relief to unemployed workers by paying them benefits based upon their previous employment history during a specific period of time. The U.S. Department of Labor oversees this program, but each state is charged with administering the program as they see fit within the federally mandated guidelines. Insurance benefits paid to the unemployed are funded by a state tax levied on employers.

Lack Of Work

The U.S. Department of Labor has several specific guidelines for state agencies administering the Unemployment Insurance Program. One of the general requirements for applicants for unemployment benefits is demonstrating that they are unemployed due to a lack of work. Unemployment benefits may be declined if you are unable to reasonably demonstrate that you either lost your previous job due to a lack of work at the company or that you are unable to find new employment due to a general lack of jobs in the economy. Applicants must reasonably prove that they are unemployed through no fault of their own. Employees fired for "misconduct" -- tardiness, theft, insubordination, and other causes -- have their claims declined, if the employer shows proof of this.

Base Period

The other federal eligibility requirement for the Unemployment Insurance Program regards previously earned wages and time worked. Your unemployment benefit request may also be rejected if you fail to meet a state's requirements for minimum wages earned or total hours worked during a predetermined amount of time generally referred to as a "base period." The Labor Department reports that in most states this period is generally the "first four out of the last five completed calendar quarters" in the period prior to filing your claim. If you have not worked sufficient hours or earned sufficient wages within the state in which you are filing your claim, the claim may be declined.

State Requirements

Aside from these two general requirements each state has the liberty to create additional requirements that applicants must meet in order to receive unemployment benefits. However, these requirements all generally have to do with demonstrating that you are unemployed through no fault of your own. State requirements may vary slightly in terms of benefits paid and the period of time that recipients may receive benefits. Unemployment benefits are temporary and your claim may be declined if your entitlement period has expired. In all states applicants for unemployment insurance must file a weekly or bi-weekly claim detailing your employment status in order to receive continued benefits.

References

• United States Department of Labor: State Unemployment Insurance Benefits
• State of Wisconsin Workforce Development: Unemployment Insurance Frequently Asked Questions About Fact-Finding Interviews, Adjudication and Eligibility Issues
• Maryland Department of Labor, Licensing and Regulation: DLLR's Division of Unemployment Insurance; Issues, Disqualifying Reasons and Penalties
• Almanac of Policy Issues: Unemployment Compensation