Unemployment Compensation
To provide temporary wage replacement to those people involuntarily let go and to help stabilize the economy during recessions, the federal government created a program for unemployment compensation within the Social Security Act. Both employers and employees pay to support this fund.
Am I automatically eligible because I paid into the fund when I was working?
No. Each state determines its own eligibility requirements and has different rules as to what constitutes unemployment "due to no fault of your own." There are also requirements for wage credits earned during an established base period. These vary state by state, so check your local rules through the state unemployment service.
How do I file a claim for unemployment?
Again, this varies by state. Many require you to apply in person. Others allow filing via the telephone.
How long am I eligible for benefits?
In general, your eligibility will be for 26 weeks, which may be extended under certain circumstances. However, each week you will be asked a series of questions. These include whether you have been looking for work, turned down an offer for work, if you worked temporarily for yourself or others, or if you returned to school. If you do not satisfy all the state's criteria, you may be denied benefits for a week or longer.
What is the unemployment benefit rate?
In most instances, the rate is based on a percentage of your earnings over the past year up to the state's maximum amount.