Help when unemployed: unemployment Insurance

Before the 1930 Depression only a few businesses offered unemployment insurance. After the disaster of 1930 it became apparent that compulsory unemployment insurance was needed. The 1935 Social Security Act paved the way in the US for a plan to provide workers who lost their jobs by no fault of their own, with partial compensation.

If you find yourself unemployed in America today, you can make use of the system to obtain a part of your lost wages. The rules and regulations are not the same in all the states and you will have to comply with the requirements for labor time and compensation received. The compensation is calculated according to the remuneration received and consecutive working days at one employer.

In order for you to collect unemployment insurance benefits, you have to fulfill the minimum requirements:

• You are only entitled to compensation when you lose your job with no fault on your side, meaning when you are fired due to something you did or did not do, you are not eligible. If you resign without good cause, you will also not be eligible, for instance where you had a problem at work, which you have tried without success to solve. Only a few states permit you to resign for private reasons. People who get retrenched have the best prospect for collecting unemployment insurance Benefits.
• You must provide proof of searching for employment. You are required to provide report backs on your progress by completing documents and returning it to the unemployment insurance office. You will have to state the names and contact details of the employers. Officials from the office will follow it up. Seeking employment entails the submission of your CV to different companies, and contacting persons who are in a position to employ you.
• You cannot file for compensation when you quit due to being disabled and no longer able to perform the job. You only qualify for compensation if you are physically able to work. If you are disabled, you should file for disability benefits.
• You may not decline employment for which you qualify when the salary is similar or higher than the one you lost. You are not required to accept a position when the salary is far below your previous job's income or for which you are over qualified.
• You are not allowed to study full time while you seek employment or receive benefits unless you can proof that the study hours don't conflict with your normal working hours and that you are searching for a job.
• Your benefit payouts stop once you are employed. Some states make exceptions for persons who work part time.
• You can only receive compensation from one state at a time, unless you apply for the difference in compensation where you have worked in two states.
• You are not allowed to collect unemployment insurance benefits if you are self employed, unless you are trying to start a business because you were laid off, or when you were already self employed before the time while you worked at the business where you lost your job.
• You may not get compensation from your former employer while you are applying for the benefits or already receive unemployment benefits. It means that you cannot apply for unemployment insurance compensation during the notice period.