Claiming Unemployment Benefits While Working: Myths Debunked

It is a common misconception that claiming unemployment benefits while working is illegal. This article aims to clarify exactly what the rules are and why it may be beneficial to do so. Whether you are working part-time, on an irregular schedule, or just needing the additional income, claiming unemployment benefits can help.

Why It's Legal

When a person is drawing unemployment benefits, they are required to report their job search activities and working hours to the Unemployment Insurance (UI) program weekly. Contrary to popular belief, it is perfectly legal to claim unemployment benefits while working, regardless of the situation, whether it is during pandemic times or normal times.

Partial Unemployment Explained

If you are working part-time or on an irregular schedule, you may still be eligible for partial unemployment benefits. If you were working a highly paid job previously and are now working fewer hours or a lower-paying job, you can typically still receive a certain portion of your previous benefits. For example, in Texas, if you are eligible for the maximum unemployment benefit of $540 per week but are now making $200 per week from a part-time job, you may still receive at least $340 in unemployment benefits.

The 125 Work Limit

The unemployment commission in your state will determine if you are eligible for partial unemployment benefits based on the amount you earn. Generally, if you make up to $125 in a week, these earnings will not affect your unemployment benefits.

Why It Might Be Beneficial

Working while receiving unemployment benefits does not necessarily mean you are "lazy." There are many valid reasons why you might need to do so, including:

No work in your field Legitimate concerns about catching the coronavirus, especially if you or someone in your household is high risk No safe alternatives are offered, and you are being forced to accept a job at a far lower wage than required by law

Additionally, working while receiving unemployment benefits can extend your duration of benefits. This is because many states consider someone with a job search to be eligible for longer periods of unemployment benefits.

Common Misconceptions

Many people believe that claiming unemployment benefits while working is illegal and could result in criminal charges. However, if you report your earnings accurately and follow the guidelines set by your state's unemployment commission, you should not face any legal repercussions.

What to Do if You Are Called for a Hearing

If the unemployment commission suspects fraudulent activity, they may call you in for a hearing. During this hearing, you will need to provide evidence of your employment and earnings. It is important to be prepared and honest during this process to avoid any unnecessary complications.

Consulting Experts

The best course of action is to consult an expert in your state’s unemployment laws. Attorneys who specialize in unemployment law may not always be the best resource, as many are not familiar with the intricacies of the program. Instead, speak with someone who has recently used the unemployment system and is familiar with the specific rules in your state.

Conclusion

Claiming unemployment benefits while working can be a perfectly legal and even beneficial practice. It is important to understand the rules and guidelines in your specific state to ensure you are in compliance and avoid any misunderstandings or complications.