Part 6: Eligibility Issues

What is an Eligibility Issue?

An eligibility issue is any information or set of circumstances which raises a legal question about whether you should be paid UI benefits, and which can deny, suspend or reduce your benefits under the unemployment insurance laws. The department must investigate all relevant eligibility issues which apply to your claim before paying UI benefits.

We must hold your payments while we are investigating eligibility issues on your claim. However, while we are conducting the investigation, it is important that you continue to file your weekly claim certifications.

If you are told to call a Claims Specialist about a potential eligibility issue, call immediately. If you do not call, you may lose benefits.

You and your employer will be given the opportunity to present facts before a decision is made. If you fail to contact or provide information to the department when directed, or miss a scheduled interview, a decision will be made using the facts available and you could lose benefits.

After the investigation of an eligibility issue is completed, you are notified of the decision in writing.

If either you or your employer appeal a written determination, CONTINUE TO FILE your weekly claim certifications each week you are unemployed or are earning less than your maximum earnings amount. Any future decision in your favor will only qualify you for benefits for weeks which have been claimed.

Common Disqualifications

Even if you have been paid enough wages from covered employment to qualify for unemployment benefits, you will not receive benefits if you:

Filing for UI Benefits While a Student

You must tell us if you are a student while you file claims for unemployment benefits. An investigation will be conducted to decide whether you are available for work. You may not have to be available for work while attending school if you are enrolled in a course of study that is considered "approved training."

Retirement Pay Reduction

You must tell us if you have applied for or are receiving any type of retirement payment. Retirement payments include periodic (such as monthly) and lump sum payments from retirement plans, pensions, annuities, 401(k)’s, 403(b)’s, 457(b)’s, as well as Railroad Retirement Benefits. Social Security Benefits are not treated as a retirement payment.

If all or part of your retirement payment was funded by one of your base period employers, your weekly unemployment payments must be reduced.

If you receive periodic retirement payments (such as monthly) from a base period employer, a weekly reduction amount is computed based only on the part of the payment that was funded by the employer. The weekly reduction amount for persons receiving Railroad Retirement Benefits is based on 50% of the payment.

If you receive a lump sum retirement payment from a base period employer, your unemployment payment will be reduced in the week the pension payment is received based only on the part of the payment that was funded by the employer.

If you roll the payment into another retirement system within 60 days of receiving it your unemployment payments will not be reduced unless you receive payments after the rollover. You must tell us if you have applied for or are receiving payments from the other retirement account after the rollover.

A voluntary retirement may be considered a quit and you may be disqualified even if you’re not receiving a retirement payment.

Verifying Employment Eligibility

The Immigration Reform and Control Act of 1986 (P.L. 99-603) requires all employers to verify employment eligibility of new employees. When an employer hires you, the employer will require that you show certain documents to prove your identity and your employment eligibility. If you are unable to present the documents to your employer within the time frame set by law, your employer must end your employment. Your failure to present the documents to your employer or to this department may affect your eligibility for UI benefits.

Updated: February 29, 2016

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