What You Need to Know About Eligibility for Unemployment Benefits After Quitting
If an individual has good cause to quit their job, they may still be eligible for unemployment benefits. Here’s everything you need to know about eligibility for unemployment benefits after quitting.
Unemployment assistance can be a valuable benefit to receive if someone is between jobs, but the reason they are unemployed will determine whether they are eligible for those benefits. In most cases, if an employee quits their job voluntarily, they will not be eligible to collect unemployment benefits unless they quit for a good reason. But there are exceptions. If someone quits for what is known as “good cause,” they may be eligible for unemployment. Also, since unemployment programs are administered by states, a person’s eligibility may vary depending on where they live.
What is Unemployment?
Unemployment benefits provide temporary, partial income replacement for qualified individuals who are unemployed or partially unemployed through no fault of their own. Unemployment benefits are intended to bridge the gap between one job and the next, providing workers with monetary payments until they find a new job. Unemployment benefits are issued for a period of time determined by the state the employee lives in.
Those seeking unemployment benefits must meet their state requirements which often include parameters around their past wages and job separation, being able and available for work, and actively looking for work.
Getting Unemployment After Quitting
These benefits are intended for workers who suffer an unexpected loss in income due to layoffs, or in some cases, due to being fired. Typically, if an employee quits voluntarily, they are not eligible for these benefits. However, if they resign for good cause they may be able to collect unemployment benefits.
Related: California Severance Pay Laws: Explained
What is a Good Cause?
There are many valid reasons to quit a job, such as a lack of advancement opportunities, insufficient hours, or unenjoyable daily responsibilities. However, these reasons do not meet the legal definition of “good cause.”
In general, having good cause for resigning means there are unsolvable problems with the work, which leave an employee with no other options other than quitting. Additionally, for a situation to be considered a good cause, it needs to be documented that the employer was made aware of the situation, and made no effort to solve it. Some examples of good causes are:
- Unsafe work conditions
- Lack of payment
- Change in job duties
- Discrimination
- Harassment
- Domestic violence
- Medical reasons
Certain family emergencies may also be considered a good cause.
Determining Eligibility for Unemployment Benefits
Good cause is determined by the employee’s state unemployment office, and it varies from state to state. For example, some states consider quitting due to a spouse’s new out-of-state job as a good cause, while others only consider that good cause if the move is due to a spouse’s military transfer.
In some states, benefits will be paid only to those who had job-related reasons for quitting, such as unsafe working conditions. In other states, an employee who has compelling personal reasons to quit, such as a seriously ill family member who needs constant care, will also be eligible for benefits.
When someone files for unemployment, they will be able to make a case for why they are eligible for unemployment benefits if the employer contests their claim. If the claim is denied, someone is entitled to a hearing where they can plead their case.
Related: How Long Can I Receive Workers’ Compensation Benefits?
If an employee is planning to quit their job and they are not sure whether they are eligible for benefits, they should check with their state unemployment office to determine their eligibility prior to resignation.
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