Depending on the reason that you were terminated, you may or may not be able to collect unemployment compensation. Employees who were fired may still be eligible for unemployment if they were fired for an illegal reason or a reason not related to misconduct. Many terminations fall into gray areas, so keeping thorough documentation is essential for both employers and employees.
The best way to determine if you are eligible for unemployment insurance is to file an application with the state where you worked, providing honest and thorough documentation. You may need to participate in a fact-finding interview via phone with the unemployment office. Your employer will be contacted via mail and/or phone to provide information, and may contest your claim. You may appeal the decision.
What Is Unemployment?
Unemployment insurance (UI) is a joint federal-state program that provides unemployed workers with some income for a short period while they are job hunting. It may also provide funds for employees whose hours have been reduced to a very low amount. Many states require you to prove that you are ready to work and job hunting while receiving unemployment compensation. For example, to remain eligible, you may need to submit a weekly verification of the jobs you applied for each week.
Businesses pay Federal Unemployment Tax Act (FUTA) and State Unemployment Tax Act (SUTA) taxes. These taxes fund unemployment programs, which are administered by states under basic federal requirements. The specifics of the program, including eligibility, amount, and duration, are set by each state and vary significantly.
While each state sets its own weekly maximum benefit, the amount you receive will only be a portion of your earnings, not the full amount. A 2025 table from Savings to Invest shows that states with the highest maximum weekly UI pay $700 to $1,000, while states with the lowest pay less than $300 per week. Many states fall in the middle, paying $300 to $600 per week. Unemployment payments count as taxable income that needs to be reported on both your federal and state tax returns.
Filing Unemployment in the State Where You Worked
The U.S. Department of Labor (DOL) provides annual reports, comparisons, and updates of state unemployment insurance laws. Select your state to find out more information about unemployment and to file an application.
In most cases, you file for unemployment in the state where you worked, not where you live. If you worked in multiple states, you could file a combined claim, but your home state can assist you. Remote workers who performed the work from their homes for employers located in a different state would file the claim in the state where their home is located.
How Long Does Unemployment Last?
In many states, unemployment insurance (UI) lasts for 26 weeks, but the length varies. For states with a 26-week maximum, a sliding scale may be used based on a worker’s earning history to determine the length. The map and table from the Center on Budget and Policy Priorities show the maximum number of weeks for each state.
The only state that provides more than 26 weeks is Montana, which provides 28 weeks. Six states have fewer than 26 weeks: Arkansas, Iowa, Michigan, Oklahoma, South Carolina, and Missouri. Unemployment in these states ranges from 16 to 20 weeks. Seven states frequently change the length of UI based on the state’s unemployment rate: Alabama, Georgia, Florida, Idaho, Kansas, Kentucky, and North Carolina. In these states, UI ranges from 12 to 21 weeks.
Eligibility for Unemployment Insurance
According to USA.gov, “Unemployment insurance pays you money if you lose your job through no fault of your own.” Full-time and part-time W-2 employees who have been laid off or downsized are eligible. Some furloughed workers can receive UI.
Employees fired for reasons that did not involve misconduct or who were wrongfully terminated may qualify. You may also be eligible if you quit your job for good cause and can prove it. Quitting for good cause includes intolerable work-related circumstances like harassment and unsafe work conditions. You will need documentation to prove good cause, show that you attempted to notify the employer, and tried to solve the problem before quitting.
“All states deny UI protections to workers that quit their job unless they have good cause for quitting. If a worker quits, no matter the reason, state law places the burden on the worker to prove they have good cause.” – National Employment Law Project
Once approved for UI, certain rules must be followed to remain eligible. You will likely need to provide weekly proof that you are looking for work. If you accept temporary or part-time work, the earnings must be reported and deducted from your weekly UI payment. If you fail to accept a suitable job offer or fail to look for work, your unemployment compensation could end.
“To qualify for benefits, many states require that you have earned at least a certain amount within the last 12-24 months, worked consistently for the last 12-24 months, and look for a new job,” reports USA.gov.
Ineligibility for Unemployment Insurance
In most states, 1099 workers are not eligible for UI because employers do not pay unemployment on their behalf. This includes self-employed workers, independent contractors, and freelancers. Exceptions were made during the pandemic for 1099 workers to qualify for UI.
In some cases, you may actually be considered an employee even if you are called a contractor. Learn about how to correctly classify contractors and employees. If state law determines that this misclassification happened, you may be eligible for unemployment benefits.
Employees who were fired for willful misconduct are not eligible for unemployment. Misconduct includes serious things such as theft, insubordination, failing a drug test, safety violations, excessive unexcused absences, or causing harm to others. Employees who were fired for non-misconduct reasons, such as poor performance, conflicts, unintentional mistakes, or not having the necessary skills, may still be eligible. Each state has its own definition for misconduct and eligibility.
Rights of Fired Employees
Employees have many rights when fired, as governed by federal and state laws as well as employment contracts. They have the right to be paid for their final wages and accrued time off and to continue group health insurance under COBRA. They also have the right to challenge terminations and may have the right to unemployment compensation.
Legal Aid at Work in California explains some rights employees might have depending on the state that they live in, including seeing their personnel files and waiting time penalties if final wages are late.
If you were wrongfully terminated, your first step may be to consult an attorney and/or report it to the appropriate agency.
For exercising your legal rights under state labor laws, report it to your state’s labor office.
For exercising your legal rights related to federal labor laws, file a complaint with the Department of Labor.
Rights of Employers
Employers have the right to contest unemployment claims, especially when based on firings, misleading information, or incorrect facts. Keep in mind that employees can also appeal if denied unemployment. Employers must ensure they are not using illegal reasons to fire employees, which could result in lawsuits and penalties.
The state unemployment office will send employers a notice when an employee files an unemployment claim. Employers can accept or contest the claim. If you decide to contest the claim, make sure you have proper documentation to support your case.
When employers provide separation notices for all voluntary and involuntary departing employees, this paper trail will help prevent future disputes and lawsuits. Some states have laws that require separation notices and specify the information that must be in them. Even if your state does not require separation notices, it is best practice for employers to always provide them for uniformity, clarity, protection, and help in the determination of unemployment insurance claims.
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