Conditions for Unemployment Benefits
Each state establishes its own unemployment benefits under the auspices of the U.S. Department of Labor's Unemployment Insurance (U.I.) program. Funds for joint federal/state U.I. programs are collected through federal employer taxes (6.2 percent on the first $7,000 earned by each employee) and through various state-levied employer taxes. The key provision established by the federal government is that workers must become unemployed through no fault of their own to be eligible for benefits. Other qualification requirements are determined by states, although there are many similarities.
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Meet Wage-Credit Requirements
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All states have some formula designed to determine your eligibility based on the length of time you have worked. Most states use some form of a "wage credit" formula. A popular method of determining if you've earned enough wage credits is figuring out how much you've worked during the past year. For example, you may have to have worked four of the previous five quarters, or worked 90 consecutive days before being discharged from your job. Some states also utilize minimum-earnings formulas, meaning that you must have earned a certain amount of money during an established period of time to be able to file for benefits. Michigan's formula requires that at least a quarter of your "base period" includes earnings of $1,998, and that the four-quarter total earnings equals or exceeds 1.5 times the highest amount of wages you earned in any single quarter.
Meet Separation Criteria
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You have to have been laid off or otherwise dismissed by your employer for reasons other than negative behavior on your part. You also cannot voluntarily quit a job and be eligible for benefits. If you were fired for cause, such as for stealing, absenteeism or breaking a company rule, you cannot collect unemployment benefits. Of course, there are appeals processes available, so check with your state if you believe that your firing was unjust or that you're otherwise eligible for unemployment compensation.
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Willing/Able to Work
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Most states require you to be willing and able to work. There are exceptions, such as if you were laid off while on disability due to a job-related injury. But if you are going to school full-time during the day and thus aren't available to work, you'll be denied benefits. You also must be willing to accept reasonable employment offers, and report any and all offers and the reasons you turned down work. Turning down work doesn't automatically disqualify you for benefits. For instance, you may have been offered a position for which you're not trained or qualified. In that case, you need to let your agent know the details.
Actively Seeking Work
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All states require you to actively seek employment as a prerequisite to receiving benefits. Your job search must be documented, including providing your state's unemployment agency with names and phone numbers of companies where you applied for (or at least inquired about) employment. If you do accept a job, most states have "earned income" allowances, meaning that you can usually earn a certain amount of money and still qualify for unemployment benefits, up to an established threshold. Some states are more generous than others. Delaware, for example, allows you to earn half your weekly benefit amount and not have any benefits deducted from your weekly benefit pay. The important thing is to keep your agent abreast of your job search and don't lie. Lying in itself is grounds for denial or termination of benefits.
Authorized to Work
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If you aren't authorized to work in the United States, you probably aren't eligible for unemployment benefits, no matter how long you've been working.
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