Can You Get Unemployment if You Quit Your Job?

Unemployment benefits temporarily replace a portion of your wages when you lose work. Most people know that laid-off workers qualify for these benefits.

But you can still receive unemployment even if you quit. Your state must consider your reason for leaving “good cause.” Good cause means you left for valid reasons that couldn’t be resolved with your employer.

Although unemployment insurance laws vary by state, the general rules apply across America. Here are the situations when you may qualify for unemployment after quitting.

When Can You Get Unemployment Benefits After Quitting?

The Unemployment Insurance (UI) application looks straightforward. You must meet basic requirements like minimum residence period, base period earnings, and ability to work.

However, your specific situation may complicate things. Here are cases when you can receive unemployment after quitting.

Constructive Discharge

Constructive discharge happens when your employer fires you without actually saying it. They may have no legal reason to terminate you. Instead, they make your work life miserable until you quit.

You may be eligible for unemployment if you prove the resignation was involuntary.

Workplace Discrimination

Discrimination in the workplace takes many forms. You may suffer injustice because of gender, race, culture, or disability. If your employer treats you differently and you quit, you can apply for UI.

Example: Maria’s employer set a rule that Latin Americans could never earn above a predetermined hourly rate. When Maria confronted the employer, they admitted the policy and told her to quit if she disagreed. Maria quit and successfully applied for unemployment. The department found she was a victim of discrimination.

Significant Pay or Hour Cuts

An employer can reduce your hourly pay or work hours drastically. The new pay may not cover your recurring expenses. If a pay cut or hours reduction compels you to resign, your state will consider your claim.

Illness or Disability

You may successfully claim unemployment if you fall seriously ill or become disabled. Sometimes a family member becomes so incapacitated that you must leave work to care for them.

Quitting in such situations doesn’t disqualify you from unemployment benefits. Note that disability can qualify you for additional help.

Starting a New Job

Quitting work because you’re starting another job doesn’t disqualify you. However, the department needs proof that the new job was confirmed at resignation time.

If you quit before finding work, you won’t qualify. Similarly, employees who leave to search for more fulfilling work don’t qualify. But if another company offered you a job and convinced you that you were hired, then left you hanging, you can claim unemployment.

Changes in Work Location

If you work onsite and your employer moves to an inaccessible location, you can resign and still receive unemployment.

Illegal Workplace Practices

Illegal practices like food and drug hazards or financial misconduct are good causes to quit. Your state is unlikely to disqualify you for unemployment.

Religious and Moral Reasons

You may quit if your work changes so much it infringes on your moral and religious convictions.

Personal Safety Concerns

You or a household dependent may need to relocate because of domestic abuse or stalking. That’s good enough reason to receive unemployment.

Depending on your state, additional reasons exist for claiming unemployment after quitting. Here is a summary for Washington state.

How to Apply for Unemployment After Quitting

Information you submit when claiming unemployment includes your previous employers’ names and contact details. The department needs this information to corroborate your claims.

The department may deny your application if the employer denies the accusations or you cannot prove them. You can always appeal the decision if you feel it’s unfair.

To get unemployment after quitting, your cause for separation should be more than sensible. It must be deemed acceptable in your state.

Managing Debt While Unemployed

Losing your job can lead to financial strain and unpaid debts. If you fall behind on payments, debt collectors may start contacting you.

Here are ways you can fight against debt collectors and win in and out of court:

• Send a Debt Validation Letter after they initially contact you. It forces them to prove all debt information is accurate (amount, ownership, transfer of ownership, etc.).
• Respond to a debt collection lawsuit with a written Answer. Fight back in court by denying inaccurate claims and asserting your affirmative defenses.
• File a Motion to Compel Arbitration into your debt collection court case. If you’re being sued for credit card debt, check your card agreement for an arbitration clause.
• Send a settlement offer to resolve the debt by paying it off with a lump-sum payment. Many debt collectors are willing to settle for less than the original amount owed.

If debt is piling up during unemployment, our partner Cambridge Credit Counseling can help you create a manageable payment plan with lower interest rates.

Getting Help With Your Finances

Unemployment benefits provide temporary relief, but you may need additional support. Creating a debt management plan can help you navigate financial difficulties.

Credit counseling services can negotiate with creditors on your behalf. They can reduce your monthly payments and interest rates. You make one consolidated payment each month instead of juggling multiple bills.

Taking action now prevents your financial situation from getting worse. Don’t wait until debt collectors start calling or lawsuits arrive.