What's My Reason For Separation on the Unemployment Application?

When you're applying for unemployment insurance, you'll be asked the reason you are no longer working for your former employer. Unfortunately, the list of possible answers can be confusing, and misconceptions or misunderstandings are common. Many people are tempted to just pick something—it can't matter that much, can it? But picking the wrong thing can lead to a denial, or worse, a nerve-wracking accusation of unemployment fraud. To minimize the likelihood of a denial or audit, you need to understand the terms and how they apply to your situation. Note: This post is for general legal information and is not to be construed as advice regarding your particular situation. Reading or commenting on this post does not create an attorney-client relationship. If you are unsure how to complete the unemployment application, you can ask for a consultation using our Contact Form. No attorney-client relationship exists in the absence of a signed retainer agreement.

What the heck do I do with this list?

What does "lack of work" mean?

"Lack of work" is the Department of Labor's phrase for what most people generally call being "laid off." Your position was eliminated, or the employer has cyclical hiring and your term was up. The employer might be willing to hire you again if it gets busier. A separation for lack of work is not generally disqualifying for unemployment insurance benefits.

"Lack of work" does not mean you were unable to work the hours offered to you. Instead, it means the employer didn't have work to offer to you. If you were unable to work—for example, because of disability or family situation—that generally means you quit, although you might have had a good cause to do so.

Did I quit?

Some quits are obvious—if you told your boss you quit, then you probably did. But some can be more confusing. For example, if your boss demanded your resignation letter and didn't give you a choice, is that a quit? Adding to the complexity is the fact that some quits are disqualifying for benefits and some aren't. The question is whether there was good cause for you to quit.

In a colloquial sense, if you quit, I'm sure you had a good reason! But "good cause" in the legal sense is another thing entirely. Quitting because you are unhappy at work isn't generally good cause, unless you're the victim of harassment or abuse.

Was I discharged or fired?

"Discharged" and "fired" mean the same thing to a lot of people, so this is a major source of confusion. The difference to the Department of Labor is that a discharge is generally not disqualifying, whereas a firing often is. So this is kind of a loaded question.

A discharge, in the unemployment context, means you were fired because you weren't meeting the employer's standards or qualifications—in other words, terminated for performance reasons. If you were fired after being placed on a PIP, this may be a discharge. A discharge for performance reasons is not disqualifying.

On the other hand, if you were fired for misconduct, you were "fired" fired, and you probably aren't eligible for benefits. But if you were fired because you were accused of misconduct and you didn't do it, you may be eligible. Remember, the employer is allowed to fire you for any reason or no reason, as long as it's not an illegal reason; but if they want to deny you UI benefits, they had better have some evidence. The employer will have the burden to prove you committed misconduct. The important thing is to tell the DOL the truth. You were still "fired," but you can deny that you actually committed misconduct.

I still don't know what to do.

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