Disqualification Factors

April 13, 2006

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Those who are eligible for benefits because they've worked and earned the minimum amount required in their state, and because they are available to work, can still be disqualified from receiving benefits, depending on how and why they lost their jobs. Generally, unemployment benefits are designed for people who are laid off because the employer doesn't have enough work for them, or who lose their jobs because of something the employer did wrong.

So, a worker will be disqualified for benefits if:

The worker turned down a "suitable" job offer during the period of unemployment. "Suitable" work generally means something appropriate for the worker's prior training, experience, and salary level, but those who have been unemployed for a long time are expected to be less picky as time passes.
The worker was fired for misconduct. This can mean violation of a specific work rule, or violation of an "unwritten rule" that the employee could be expected to know (for example, stealing, insubordination, excessive unexcused absences etc.) In most situations involving misconduct you should have documentation of warnings, progressive discipline, etc., that will enable you to easily prove what happened and keep the worker from receiving benefits at your expense. However, be aware that poor performance or incompetence is not usually considered misconduct. Although you have the right to fire a poor performer, he or she will probably be able to collect unemployment.
The worker left the job voluntarily, without a good cause connected to the job. In all states, a worker who quits because the employer does something nasty like harassing or discriminating against him or her, or making a significant change in wages, hours, job duties, location, or other working conditions, has "good cause" to quit and won't be denied benefits. States differ in their interpretation of whether "good cause" includes quitting for health-related or personal reasons such as a spouse's relocation — consult your attorney for the most up-to-date rules that apply to your area.
The worker is unemployed because of a strike or other work stoppage caused by a labor dispute.
The worker is receiving workers' compensation payments, social security payments, a private pension, or severance pay.
The worker has lied on the benefit claim or has omitted some important information, in order to get or increase benefits.