If workers leave their job due to uncontrollable circumstances, then they become eligible for unemployment compensation. The state unemployment agency reviews the information provided by employees, talk to their past employer and even interview the employees before deciding as to granting or denying the claim for unemployment benefits. Once the claim is granted, employees will start filing weekly claims for unemployment benefits and receiving unemployment checks. However, to qualify for the same, workers need to have earned enough income during the stipulated periods. Often employees can be denied the benefits even after technically qualifying. In such scenarios, they can seek the assistance of various state appeal systems for getting recourse.
Amount of Unemployment Benefit
Since unemployment benefits partially replace lost wages, the exact amount will depend on your earnings. Different formulas are used by States for calculating benefit payments but prior earnings of employees are taken into account by all states in one way or another. An upper ceiling is also imposed by all states on the total weekly benefit amount. An additional benefit is offered by certain states to employees with dependents. These benefits range up to a maximum of $25 per week per dependent in additional benefits. Since unemployment benefits are taxable, employees can elect to pay federal income taxes by withholding 10% of the benefit amount.
Reasons behind Denial of Unemployment Claims
- The employee might have quit their job voluntarily. However, they will still be eligible for unemployment benefits if they can state a good reason according to state law for performing the job.
- Claims of an employee might be denied if he was fired from the job due to the state’s definition of misconduct.
- Every state imposes minimum work or earning requirements over a 12-month base period. This comprises the first four among the five latest quarters before filing for unemployment. If an employee fails to meet this requirement, then the state unemployment agency might deny your claim.
Even after being initially granted unemployment benefits, the same might be denied if employees fail to meet the ongoing requirements. The state might deny your claim if you aren’t available for work, turn down suitable work, or don’t report earnings received while collecting unemployment benefits.
The Process of Appeal
The appeal process of a denied claim varies between states though the rules are substantially similar to each other. Both employers and employees are eligible to appeal to the approval or denial of a worker of their benefits. The chances of employers to attain success while appealing unemployment claims increase when they work with professional representation. Employers pay taxes into the unemployment insurance program and their tax rates shoot up when claims are filed by their employees.
At times employees feel their benefits are approved only to find out that their unemployment decision is being appealed by their employer. In such cases, employees might either respond to their employer’s appeal or file a fresh appeal for denial of benefits. All the instructions on how to respond and an appeal form are provided in the accompanying notice. State time limits range between 10-30 days approximately once the agency mails a notice stating that the claim has been denied.
Finally, a hearing is scheduled where both you and your employer can present your cases offering evidence in support of your positions. If employees feel they have earned adequately to qualify for unemployment benefits but your employer has misreported the same, then they can bring in copies of deposited paychecks or wage subs for proving the income earned. Employees can also bring in witness testimony either by asking them to submit written statements or questioning witnesses in person. This is extremely important if employees left their last job in dispute. For example, when an employee quits due to ongoing sexual harassment while the unemployment agency finds they have quit voluntarily, they can present a doctor’s note indicating deteriorating health or testimony of co-workers who were witnesses to the harassment.
On winning and being granted unemployment benefits, employees will be entitled to continue receiving the benefits. This shall hold even when the employer appeals that decision at a higher review level. After getting a positive ruling, employees will be entitled to unemployment benefits until a different ruling is passed at higher levels.
Employees can win the appeal to subsequently receive a notice that their employer is again appealing the decision. This can lead to the reversing of your successful unemployment appeal and a subsequent hearing is scheduled before a different panel or judge. The state of New Jersey is extremely generous about the appeal process. If the second appeal goes to the Board of Review in New Jersey and you do not get favorable results, then you can reach out to the New Jersey Superior Court’s Appellate Division.
Timeline for Unemployment Appeal Hearing
Reaching the final verdict requires significant time and both parties get 30 days for responding to the first decision and appealing it. This time frame becomes 15 days in the state of Pennsylvania although extensions are often granted for unforeseen events like illness. A notice is sent to both parties within a week following the initial hearing regarding the outcome of the appeal. An additional 20 days is offered to both the employee and employer in New Jersey following the postmark date to appeal for a second time. Next, the decision is sent to the Board of Review and it takes another two months for concluding. However, employees who are experiencing severe hardship can request the board to accelerate the process.
Receiving Back Pay
Winning an appeal is time-consuming and it is advisable to keep claiming all weekly benefits so that you get the back pay after winning the appeal. Benefits are accrued during the appeal process alongside future benefits provided your initial claim remains alive. You are entitled to all these benefits. On winning the appeal with your Referee, it will take between 2-4 weeks for receiving all benefit payments from the UC Service Center. However, various states impose a weeklong waiting period before the benefits start. This is applicable even after an appeal. If you initially got the approval but your employer appealed subsequently, then you will not receive back pay for the first week in the best-case scenario.
Getting Unemployment Benefits against the Covid-19 Backdrop
Certain rules have been temporarily tweaked to cater to the rising unemployment during the Covid-19 pandemic. Federal law has relaxed various qualifying requirements through the end of 2020. The Pandemic Unemployment Assistance (PUA) program has made both self-employed individuals and gig workers eligible for the benefits alongside those who worked for a short period before being laid off. The PUA program and state unemployment benefits are treated as two distinct programs in certain states and you need to apply for both. The waiting period has also been waived by a majority of states. Higher unemployment tax rates levied on employers have also been waived by states to support numerous employees applying for unemployment benefits post-pandemic.
If employees earn other income while receiving unemployment benefits, then their amount of claim might be reduced. They will no longer be considered eligible for unemployment if employees find a new job during this period. In case workers pick up a temporary job for a day or two, then they need to report their earnings to the state unemployment agency who shall determine whether the unemployment benefits need to be reduced for reflecting those earnings. Most states offer unemployment benefits up to a maximum of 26 weeks in a normal economic climate. The benefits can be extended further in times of high unemployment like the one caused due to the coronavirus pandemic.