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Unemployment Insurance


Each state has its own Unemployment Insurance program which is primarily designed for people whose employment is terminated. Unemployment Insurance provides an income to keep people going until they find another job.

To locate the Unemployment Insurance office and for information about the Unemployment Insurance program in your area, see: offsite link.

People who leave work because of disability sometimes attempt to use Unemployment Insurance for a short term income.

If you are considering using Unemployment Insurance for this purpose, be aware that it can cause some problems.

People collecting unemployment are supposed to be actively seeking employment. Most states require that a receipt must be signed when each benefit payment is made. The receipt states that the person receiving the check fits each of the following:

  • Willing to work.
  • Able to work.
  • Is actively seeking a job.

This statement can cause a conflict if you are also collecting, or attempting to collect, other income on the basis of disability - which is the inability to work. In order to collect disability, you have to be telling another government agency or possibly a private disability income policy insurance company that you are NOT able to work.

This is further complicated in those states which have the same department handling unemployment and the state's disability program. (To learn more, see State Disability Programs.)

The possible consequences of this contradiction differ from state to state. You may be disqualified from receiving benefits, or be subjected to returning money at a time when money is tight, or be subject to penalties and interest. You could even be subject to criminal penalties.

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