Filing for Unemployment After a Layoff

In time of general economic downturn conditions many employers may be financially forced to lay off a substantial number of employees.  A reduction in the work force or a plant closing can cause a number of unemployment related problems for the employer and the laid off employee.  The very first thing the employee must do after a lay off is to apply for his or her unemployment benefits.  Pursuant to the Federal Unemployment Tax Act (FUTA), employers are required by law to pay both state and federal unemployment taxes. These taxes fund the cost of administering unemployment insurance and state workforce programs, which in turn allow the laid off or unemployed individual to begin collecting unemployment benefits right away to support himself and his family. Employers are required to set aside a certain sum of money for each employee as a kind of hedge against the scenario where that employee is subsequently laid off by the employer through no fault of his own. That hedge money then is made available to employee after he or she files for unemployment benefits upon being laid off.

It is pretty simple for employees to file for unemployment benefits in person, by telephone or by using the internet.  If the application is submitted on the internet the employee will need to have ready his or her social security number, the date he or she started working and ending date of their last job, the previous employer's business name and address, and number of hours worked along with the pay rate. 

The laid off employee seeking to submit his application online needs to take the following steps:

• Go to the U.S. Department of Labor website.
• On the home page click on DOL Services by Location
• On the large map of the United States click on your State
• You will be linked to your State’s unemployment insurance information website.
• Then just apply for unemployment benefits online.

Unemployment Benefits

In general, unemployment insurance benefits are based on a percentage of an individual's earnings over a recent 52-week period - up to a State maximum amount. Benefits can be paid for a maximum of 26 weeks in most States. Additional weeks of benefits may be available during times of high unemployment and some States will provide additional benefits for specific purposes.  Benefits are subject to Federal income taxes and must be reported on your Federal income tax return. Employees may elect to have the tax withheld by the State Unemployment Insurance agency.  And finally, it generally takes two to three weeks after an unemployment claim is filed to receive the first benefit check. Some States require a one-week waiting period; therefore, the second week may be designated as the first week of payment.

But even if a former employee has easily and successfully started the application processes to receive his or her unemployment compensation checks it may still be important to seek out the assistance of an employment attorney to insure that the employee is getting everything he or she is entitled to receive in connection with the former employment.  An attorney can review any employer generated severance package to determine that no discriminatory tactics were employed against the former worker.  An attorney can also determine that the employer has taken no unfair or illegal step to interfere with the former employee’s right to access and receive to unemployment benefits.  Finally, an attorney can be very helpful to a union employee who may be trying to bargain with a union concerning his or her rights to unemployment benefits.