How to claim unemployment benefits?
So you got laid off… Don’t panic but make smart moves fast. Here’s what you gotta do ASAP ⬇️
DO THESE IMMEDIATELY.
- Don’t sign anything in the moment. Severance, NDAs etc - make sure to take these home & carefully read through. You’re allowed to (and should!) negotiate. You can even ask AI to spot any potential red flags in what you’re company is offering you.
- Get everything from your HR in writing. Here’s the full list of what you should ask:
- What’s my official last day of employment? (you’ll need this for health insurance & government benefits)
- What’s my severance - how & when will it be paid?
- When does my health insurance end?
- When will I receive COBRA information?
<div class="frich-tip">Read all about what happens to your health insurance when you get laid off here.</div>
- When will I receive my final paycheck?
- Will unused PTO / vacation days be paid out? How many?
- What happens to my 401(k) & what are my options to roll it over?
- When will I lose access to internal platforms?
- Does my HSA stay intact? (it should)
- Who can I list as my employment verification contact?
- Can I save non-confidential work samples?
- What’s the best email for any follow-ups?
- When will my W-2 be sent out and to what address? (make sure your company has the right address on file)
Now that you’ve cleared that up, the immediate next step is to apply for unemployment. It’s important to do it ASAP because states will backdate your payments to the date you filed, not the date you got laid off.
Unemployment isn’t charity. You’ve already paid for it through your monthly state income taxes. You’re just claiming what’s rightfully yours to help bridge the gap between two jobs.
<div class="frich-tip">Before we dive in, note that, since unemployment is paid by the state, amounts differ from state to state.</div>
Okay, now let’s move onto your unemployment checklist:
Do I qualify?
Here’s the caveat. You only qualify for unemployment if you were laid off. Not if you quit your job without a valid reason. You also won’t qualify if you’ve been laid off for misconduct.
How much will I get?
There’s quite a few things that affect this number so you’ll never be sure how much you’ll get until you hear back from the state. But to keep it simple - each state pays a different percentage of your previous income. Each state also caps a weekly maximum. For example:
- New Jersey pays one of the highest shares of your previous income at roughly 60%
- Utah pays one of the lowest shares of your previous income at roughly 30%
But, when you take into account weekly maximums (the amount at which a state will cap your unemployment regardless of how much you made before):
- New York has the highest weekly cap at $869 / week
- Mississippi has the lowest weekly cap at $235 / week
On top of that, the state will try to make sure that you have been consistently employed by asking you to prove how many hours you’ve worked & how much you’ve earned in a pre-set base period. Base period is the first 4 of the last 5 completed calendar quarters.
- A “quarter” = Jan–Mar, Apr–Jun, Jul–Sep, Oct–Dec
- “Completed” = the most recent quarter doesn’t count, because it isn’t done yet
So they grab the previous 12 - 18 months and check:
- Did you earn enough during that period?
- Did you work long enough?
- Are your wages high enough to qualify for benefits?
Each state sets its own minimum. But here's an example:
So basically… it’s a bit of a black box how your actual unemployment is being calculated but your main takeaway should be to apply for it ASAP.
How do I apply?
1. Go to your state’s unemployment website. (Google: “[your state] unemployment insurance.”)
2. Create an account if you don’t have one.
3. Submit a claim with the right reason for leaving.
<div class="frich-tip">This one’s important. Use the wording that matches your situation like “laid off”, “position eliminated”, “reduction in workforce”. Do NOT write “fired”, “let go”, “personal reasons” or long emotional paragraphs. They’re making sure here that your reason for being unemployed matches the criteria so make it obvious.</div>
When will I get paid?
Some states have a mandatory unpaid waiting week. You’ll still need to file for it but you won’t get money for that week.
After that, payments start arriving within 2-4 weeks of applying (they will be backdated so the first cheque will be bigger). After that, your payments will arrive weekly or biweekly.
<div class="frich-tip">Make sure to set up direct deposit to avoid any additional delays!</div>
How do I keep getting payments?
Once you apply it isn’t over. You have to keep proving to the government that you’re still unemployed AND you’re actively looking for a new job. You’ll have to log in weekly to your state’s unemployment portal and answer:
- Did you look for work?
- Did you earn any money?
- Were you able/available to work?
If you miss this weekly check-in, you won’t receive any payments for that week.
Remember, unemployment cheques won’t come forever. It varies state by state (eye-roll) but in general you can receive unemployment benefits for 12-26 weeks.
How do I keep the state happy?
Again, this varies state by state so make sure to pay attention to their requirements. But here’s a ballpark estimate:
- States may require you to apply to 1–5 jobs per week.
- Some want proof, like screenshots or a job search log.
- Unemployment can audit you at any time.
Use this spreadsheet to keep tabs on your applications so you can keep qualifying for your unemployment.
FAQs
Does severance affect my unemployment benefits?
Some states will pause unemployment until severance ends while others allow you to receive both at the same time. It will be outlined in your approval letter.
Does my PTO payout affect my severance?
It usually won’t affect your eligibility but it could delay your start date (in some states).
Are my unemployment benefits taxed?
YES. UNEMPLOYMENT IS TAXABLE INCOME. Set aside roughly 10% so you’re safe once it’s tax season.
What do I do if I get denied?
Appeal. Seriously. Most first-time denials are reversed.
Good luck out there! Let us know if we can help you with anything else.
