Unemployment insurance is meant to help those who are let go from a company at no fault of their own, due to lack of work or economic conditions. If a worker voluntarily leaves a company, it typically means they are not eligible to file for benefits.

Like most things in life, there are exceptions to this rule. It comes down to leaving “voluntarily without good cause” or “voluntarily with good cause.” Frequently used good causes include new employment, retirement, harassment or illness. With the exception of a few states, good cause is not reason enough to qualify you for benefits. You must also be able to connect your good cause with the employer.

Voluntary Disqualifications You Don’t Have to Pay For

Unless you’re in one of the states that examines the good causes and determines if unemployment insurance can still be provided, it really doesn’t matter why they left as long as it wasn’t your fault. If your employee quits because you don’t have enough work for them, it’s likely you’ll have to pay for their UI. Here are a few voluntary reasons you don’t have to worry about:

Students

If you have a worker who decides to go back to school, you are not required to pay benefits to them while they’re away. The specific rules vary by state, but typically they’re disqualified for either the entire time they’re in school or just during term.

Transportation

When a worker ends their employment because of any issues related to getting to the job, the laws around the Federal Unemployment Tax Act (FUTA) do not require businesses to pay them benefits.

Moved With Spouse

If the employee had to move because their spouse found a new position, it is not the company’s responsibility to pay unemployment insurance while the worker looks for something new. They left for personal reasons not connected to the company.

Unemployment Insurance is Complicated.

Unemployment Tracker makes it simple. With so many laws and regulations around the country, it can be challenging to keep up to date with who qualifies and who doesn’t in your company. Instead of hoping for the best and potentially overpaying by thousands, trust Unemployment Tracker to make sure you’re only paying to those qualified. Request a live demo today!