So you decided to leave your job, eh? Congratulations! You’ve established an income stream that you’re going to build upon and already earning from, right?
Oh ok. Well, at least you have a nice little nest egg saved from all your months or years of actually working a 9 to 5? What?
Ah, you’re going to live off of unemployment benefits. But….you…left…..voluntarily……?
Okay. Sit down and let me explain something to you about unemployment benefits. Now, I’m no expert, but I’ve been working in HR for a number of years and I know a few things about unemployment. However, let me preface it again, I AM NO EXPERT! For detailed questions, you need to contact your local state unemployment agency, as every state has it’s own rules. But some of the rules are pretty similar between states.
If you are that person who has already quit your job and have no backup plan for the immediate future, get a backup plan. NOW!!!!
If you’re not the person who has already quit your job yet, but you’re teetering on it, there’s still hope for you. Most people who quit or get fired from their 9 to 5 jobs have no clue what to do next. The first instinct is to take a little time to think about their next step, which is wise. But definitely, don’t panic. Panic always leads to irrational decision making and that never ends well.
What I want to give you is a few reasons why one would be denied unemployment benefits. Unemployment is income that can be used to not only live off on for a while planning your next move, but it could also help you start that business or site you’ve been putting off creating. It can be used as a bridge until your business is able to support you, but it shouldn’t be taken for granted.
Here are 10 reasons of why you would be denied unemployment benefits-
- Quitting voluntarily without good cause attributable to the employer
- Being fired for misconduct connected with the work.
- Being fired for intoxication while at work.
- Disciplinary suspension or layoff for misconduct with the work.
- Being fired for absence due to conviction and imprisonment.
- Failure to apply for suitable work.
- Failure to accept an offer of suitable work.
- Being fired for theft or willful destruction of property in connection with the work.
- Being fired for illegal use or possession of drugs on the employer’s premises.
- Being fired for refusing to submit to a drug test or testing positive for illegal drugs on a drug test.
It’s best that you do your homework before you apply for unemployment. In my experience, most people automatically assume they are entitled to unemployment when they are terminated from a job. This is so far from the case that you wouldn’t believe. In most instances, after you’ve termed, an investigation is done after you file for unemployment.
The unemployment agency sends a request to your former employer with the information you provided when you applied for unemployment. Typically, your former employer has 30 days to respond to the verification. After that, the agency notifies you by mail whether you are approved or denied benefits.
Keep in mind, your former employer does not want to pay unemployment if they don’t have to. They will do what is in the best interests of the company. Sad to say, but it’s the truth. So before you hand in your resignation, make sure you have saved enough money in your savings, checking accounts and emergency fund accounts to pay yourself for at least 6 months. If you can luck up on tickets abroad to Thailand or Laos, your money can go even farther and longer.
If you’re not the type of person who “thinks outside the box”, unemployment will be a cruel teacher to you. But if you’re the type of person that can make lemonade from lemons, unemployment will be a challenge you can take on with no fear.
(Editor’s note: If you live in the US states of Delaware, Maine, New Jersey, New York, Oregon or Pennsylvania, you may want to look into the Self Employment Assistance Program . It’s a program designed to help unemployed persons start their own businesses. Visit the US Department of Labor for more information.)