Can I Get Unemployment if I Was Wrongfully Terminated?

As a matter of public policy, all 50 states have established unemployment funds to help individuals who have lost their jobs. These funds help people pay their bills and support their families while seeking new employment. However, being wrongfully terminated could have an impact on your unemployment compensation.

When Can I Collect Unemployment Benefits?

Not everyone can collect unemployment insurance simply because they no longer have a job. You have to meet certain criteria to qualify. Each state outlines the specific criteria for its unemployment program. Generally, an employee must have lost their job through no fault of their own. This happens in the 49 states that recognize at-will employment. In these states, you can be terminated at any time and for any reason that does not violate employment laws.

State laws require individuals to have been consistently employed and earn a paycheck for a certain amount of time, usually between 12 and 24 months. Most state programs also require you to be actively looking for a new job.

Reasons You Can’t Collect Unemployment

Fired employees are not eligible for unemployment if their termination results from misconduct. Misconduct goes beyond simply not performing job duties to the required standard. It typically requires the employee to willfully underperform, repeat absences, violation of company policy, or refuse to follow directions. It could also involve the employee purposefully acting against the employer’s interests.

Individuals who choose to quit or leave their jobs are also not eligible for unemployment. However, some states have exceptions in place. You may still qualify for unemployment if you willfully leave your job because the company could not provide the required amount of working hours to support you and your family. Employees could still be eligible if they willfully left their jobs to care for a family member with a serious medical condition. These exceptions are typically referred to has resignation with good cause.

Finally, individuals who do not meet the state’s requirements are not eligible for unemployment benefits. They may be attempting to file a claim in the wrong state, not working enough during the base period, or not providing all the required information.

How Does Wrongful Termination Impact Unemployment Eligibility?

Wrongful discharge and unemployment claims are two separate processes. However, the reasoning for the wrongful termination that the employer provides to the unemployment agency could prevent someone from collecting unemployment that they rightfully deserve. While at-will employees can be terminated for any reason, employers may present reasons to terminate that point to a cause other than the protected action that the employee took. For example, if the employer argues that the termination occurred due to the employee’s misconduct, that could negatively impact the collection of unemployment benefits.

Another approach an employer could take is to claim that the termination occurred because of business needs, such as layoffs due to a decline in workforce needs. This wouldn’t prevent an unemployment claim but would make filing a wrongful termination claim harder.

Appealing a Denied Unemployment Claim

If an unemployment claim is rejected, the individual can file an appeal. Submitting evidence to support their stance is essential for a successful appeal. Written communications, witness statements, or performance reviews can help employees establish their performance record with the company.

Individuals could also submit documentation from their employment discrimination or sexual harassment claim to the U.S. Department of Labor (DOL). Depending on the situation, they could submit evidence of an active whistleblower investigation, a worker’s compensation claim, or leave taken in accordance with the Family Medical Leave Act (FMLA). These are all protections afforded workers under federal law. An employment law attorney can assist in the appeal by showing that the discharge wasn’t because of misconduct and that the employee should receive unemployment.

If your unemployment gets denied, you must act quickly. Some states have a limited period of time for filing an appeal. In many states, it is less than 30 days. While the exact process will vary from state to state, the general process is to have an investigation that involves responses from you and the employer. An agent will review the appeal and issue a determination. Providing evidence or documentation supporting your appeal will give you a better chance at success.

What Is the Process of Claiming Unemployment Benefits?

Terminated employees must file an unemployment claim in the state where they worked. Since no federal unemployment fund exists, each state manages its own program. This can be done online for the fastest claim submission process. Depending on the state, you may be able to file online, through the mail, or in person. Not all states offer all options, so you will need to look into what your state requires.

Each state has specific requirements for filing a complete unemployment application. This typically includes your information, the business information that you worked for, payment history, and reason for becoming unemployed. Your previous pay reported will be for a specific amount of time. This is the base period used to determine your unemployment benefits.

Some states have extensive filing and document requirements for individuals claiming unemployment. California, for example, requires information about all employers in the last 18 months, gross pay for each employer, reasons for no longer working, registration through the ID.me website, two forms of primary identification documents, and a secondary form of identity documentation.

Other states have a more straightforward process for individuals applying for unemployment. For example, Florida and Mississippi require applicants to file online using the documents below.

• Social Security number
• Driver’s license or State ID number
• Your employment for the last 18 months, including the name, address, and phone number of each employer:
• First and last day of work
• Gross earnings (before taxes are taken out)
• The reason for the separation
• Federal Employer Identification Number (FEIN)

Bringing a Wrongful Termination Claim While Collecting Unemployment

You can collect unemployment while filing a wrongful termination lawsuit and vice versa. The biggest challenge is having an unemployment claim approved, as many employers will attempt to cover up wrongful termination by claiming there is a just cause.

Often, this cause is employee misconduct, which would disqualify the employee from unemployment. However, poor performance alone does not typically preclude someone from being able to collect unemployment. Most states define misconduct as willfully failing or refusing to perform duties, repeatedly refusing to follow directions, or purposefully acting against the employer’s interests. An employment law attorney can help file an appeal for a rejected claim.

In addition to the unemployment benefits, a wrongfully terminated employee can seek compensation for damages. This could include back pay, lost future earnings, reinstatement of their position, or possibly emotional stress. Depending on the circumstances, there could be additional damages, such as claims associated with discrimination or sexual harassment.

Justin Burns is an employment litigation attorney in New Jersey for the firm of McMoran, O’Connor, Bramley & Burns P.C. He explains how available remedies are not always the most viable in practical application. “Although reinstatement is a remedy under the state, courts generally convert that. Rather than reinstatement, you get compensated for lost economic earnings via back pay, which is paid from the date of termination to the date of trial, and then front pay from the date of trial into retirement.”

Filing a Wrongful Termination Case

If you find yourself terminated from your employment, the first step is to file for unemployment. While it cannot completely support you, it can provide much-needed financial assistance while you look for new employment. Unfortunately, your unemployment claim may be denied if you’ve been wrongfully terminated. Working with a lawyer can help you navigate the unemployment appeals process while also pursuing a wrongful termination claim. “Oftentimes, an attorney may be able to give better advice to either protect that individual from retaliation or put them in a better position in case they are retaliated against.”

Find a Wrongful Termination Lawyer

Visit the Super Lawyers directory to find a wrongful termination lawyer. For more information on these legal issues, see our guide on what qualifies as wrongful termination and when to report wrongful termination.