The Basics of Unemployment Insurance and Workers' Compensation

• Author: Bryan Miller
• Posted: 2024-08-21

Experiencing unemployment can be one of the most challenging life occurrences. As many Americans have little savings in the bank, paying for everyday expenses without an income can prove nearly impossible. However, learning more about unemployment insurance and workers' compensation can help provide you with some information on how you may be able to get financial assistance during this difficult time.

Unemployment Insurance
If you have recently lost your job, one of the first aspects to consider is to prepare for your financial future. Unemployment insurance, also commonly known only as unemployment, is one way you can help alleviate financial concerns by receiving payments if you meet specific qualifications.

Usually, you must not have been dismissed from your duties for a reason such as poor performance to be awarded unemployment insurance. Ultimately, this means that you were not fired for a reason, and you could perform your job well. People laid off or whose hours were significantly reduced will often qualify for unemployment insurance.

However, you may also qualify if there is a dispute between you and your employer about the reason behind your leaving their employ. If you think you were unjustly fired, you may visit your state's unemployment insurance website to apply for benefits. If there are any questions about your claim, you may receive a call or have a request to set up an appointment with a case manager who will interview you about the details regarding your termination.

When there is a dispute between an employer and a former employee, in many cases, a formal meeting may take with your former company's representative, you, and a case manager to make a final decision regarding the awarding of employment insurance. If you are asked to attend this meeting, you may wish to bring with you any evidence that would support your claim of being unjustly terminated.

Know that if you qualify for unemployment insurance, it will typically provide substantially less money than your previous position. The aim of unemployment insurance is to help people who lost their jobs pay for basic living expenses. You can use this money as a way to help provide some financial support as you look for your next position.


Workers' Compensation
Different from unemployment insurance, workers' compensation is also another financial path to pursue if you were hurt while at work and are no longer able to continue in your position. Workers' compensation is intended to provide support to employees who were injured on the job and need support paying for everyday bills and medical expenses.

One of the most important pieces of workers' compensation is that while you apply for and receive financial compensation, you are still technically considered an employee of the company for which you worked. However, due to an injury, the inability to work also means that you are no longer receiving your hourly wage or salary.

Filing for workers' compensation can be a daunting task and typically will require a statement from you, anyone who witnessed your accident, and a medical statement from a physician detailing your injuries and how they occurred. The process can take time to complete. However, it can be worthwhile to ensure that you get the money you need to get better.

In addition to helping pay for lost wages, workers' compensation will also often include money to pay for medical treatments such as doctor appointments, medical tests, and medication. And make sure you take the necessary time to go discuss your injuries with your doctor will prove invaluable in terms of helping to secure the money you need to get better.

If you need to file a workers' compensation claim, reaching out to your company's human resources department may be the best avenue to begin the process. They should be able to inform you of the paperwork you need to complete the claim and answer questions you may have. It may also be helpful to engage the services of an attorney who specializes in this field to help you navigate the claims process.

Finally, it is important to begin the claims process as soon as you can. There are many important deadlines when filing this type of claim, and if you do not file quickly, you may lose access to the benefit.

Unemployment insurance and workers' compensation are two types of programs that can help unemployed workers. Knowing more about how you may qualify and how to apply can make the difference between having sufficient resources to last you until your next job or desperate financial circumstances.