.comment-link {margin-left:.6em;}


The www.FedPrimeRate.com Personal Finance Blog and Magazine

Friday, August 29, 2008

Applying For Unemployment Benefits Can Blow Up In Your Face

Sometimes you just don’t finish on top. The last time I worked a job was quite a few years ago, and unfortunately, I was fired. I was chronically late, and at a call center, that’s very bad. Very bad. That last time that I was late, I had a great excuse for not making it on time, but there was no room for negotiation. I had acquired too many demerits in too short a period of time, so I was let go.

The next step for me was applying for unemployment benefits. I had always been warned that getting fired from a job could disqualify one from receiving them, but my mom advised me to apply anyway. “The worst thing that could happen is that you get denied, right?”, she asked. I agreed with her sentiment and went for it. They approved me, and I was relieved. I would be getting married in less than six months, so I couldn’t afford to go from a full-time income to no income at all. I figured that since I would be moving to a new city once I got married, never to work again, I could simply receive the unemployment benefits until they ran out, and life would go on.

And that’s exactly what happened.

That is, until I received a letter from the state at my new address 150 miles away letting me know that my unemployment benefits were being disputed. I couldn’t believe it; I didn’t even know that such a thing existed. I received unemployment checks for months - why would the company dispute my eligibility after they had already paid the money? I was so young at the time that I didn’t even realize that it was my former employer footing the bill to begin with, so the entire ordeal was a whirlwind of confusion and questions. It also hurt my feelings because my former manager and boss personally signed off on the dispute. It truly was business, and nothing personal, but it sure felt personal. I couldn’t understand the fairness in being approved for unemployment benefits by the state and then being denied after the fact. If I was receiving unemployment benefits, the assumption would logically be that I do not have enough money to pay them back, or else I wouldn’t have needed them to begin with! I felt like I was being robbed at gunpoint.

And that’s almost what happened.

There was a hearing, and it did not go well. My former employer had a lawyer present - I was totally blindsided. I didn’t even know I needed legal representation, considering that the hearing was not before a judge. They ran me through the mud, my former manager speaking about me as if we never had any camaraderie at all. I was ordered to pay back every dime of a benefit that I was told legally belonged to me. However, just spending all that we had on our wedding and post-nuptial activities, we didn’t have the few thousands dollars that my former employer demanded. And so our joint state tax returns were garnished for a few years.

I later found out that I was not the only person I knew who had experienced this. Another young friend of mine found himself behind the barrel of the same gun, except General Motors was conducting the stickup that time. Who knew that just like buckshot spraying from a barrel, applying for unemployment benefits could blow up in your face?

Labels: , , , ,

--> www.FedPrimeRate.com Privacy Policy <--

--> SITEMAP <--


Anonymous Anonymous said...

Wow. I had no idea an employer could dispute the claim and get their money back. I applied for and received benefits many, many years ago, and all went fine, and I was fired too (I had an illness and I kept calling out; some days I was too exhausted and depressed to even call my boss, and I got fired.)

The only thing I didn't like about jobless benefits is that you have to pay taxes on that money.

Great story. Thanks for sharing.

Thursday, August 21, 2008 12:40:00 PM  
Blogger Matt said...

That's unbelievable! Thanks for telling readers about your story.

Saturday, August 30, 2008 3:36:00 PM  
Blogger Richie said...

Unemployment insurance is paid both by the employer and the employee. The employer can and does have the right to dispute your unemployment insurance payment, because basically, they are paying your wages while you're not working for them.

Unfortunately, it was a sad situation for you, but they were not going to fire you and then end up going to pay your wages while you were not in their employment. If this should happen to you again, make sure you have a lawyer to represent you. In my case, I had the same thing happen to me, but I won the case (without a lawyer) because they wanted me to do something unethical.

Saturday, August 30, 2008 10:36:00 PM  
Blogger Unknown said...

Wow, I never knew that. Scary.

Tuesday, September 02, 2008 7:50:00 PM  
Blogger Steven said...

Holy cow. That sucks. I quit my job so I dont think I can file for unemployment. Hopefully my job search doesnt take too long. But now I will be extra careful in the future. Thanks for the heads up

Thursday, September 04, 2008 8:13:00 PM  
Anonymous Anonymous said...

Maybe you should have showed up on time, you lazy ass. I'm glad you owe the money.

Friday, September 05, 2008 1:31:00 PM  
Anonymous Anonymous said...

I would be getting married in less than six months, so I couldn’t afford to go from a full-time income to no income at all. I figured that since I would be moving to a new city once I got married, never to work again

Wow.. who's the lucky guy who gets to marry a lazy deadbeat like you?

Sunday, September 07, 2008 8:57:00 AM  
Anonymous Anonymous said...

> I'm glad you owe the money...

I think you missed the point. She was approved for benefits and then was asked to pay it back later. That's wrong. If the claim was not legit then the authorities should have denied her claim. The state made her pay for their mistake, and that's disgusting.

Wednesday, September 10, 2008 12:25:00 PM  
Anonymous Anonymous said...


Some readers have missed the entire point of the article.

My anecdote was not about whether or not I was entitled to unemployment benefits or not; if you read it carefully (as opposed to just skimming through it), you will see that I did not think I was eligible. I also didn't understand how the system worked at that time, so I simply applied to see what would happen. The point was that if I was not eligible, I should have never been approved.

If you're looking for a deadbeat to judge, maybe you should watch daytime reality television or something like that. Successful writers and entrepreneurs who are secure enough in themselves to share stories about past mistakes and experiences do not make good targets.

I don't have to worry about being in such a position ever again because I don't have to work a job anymore. There is nothing wrong with having a job; I'm just a lot better at being the boss than answering to one.

However, since all of you perfect naysayers have never made bad choices or done anything unwise, I'm sure that it was your high life upon the proverbial pedastal that caused you to miss the entire point of my post.

It's alright; we ALL make mistakes, don't we?

Have a great day, readers ;-)

Wednesday, September 10, 2008 3:25:00 PM  
Anonymous Anonymous said...

> Successful writers and
> entrepreneurs who are secure
> enough in themselves to share
> stories about past mistakes...


I was very disappointed to see the many commenters over at the MSN blog who were so quick to judge. I guess I wasn't fully aware of how narrow-minded many in the blogosphere are.

Thursday, September 11, 2008 6:17:00 PM  
Anonymous Anonymous said...

Hi yea I have the exact same thing happening now. However I was never mailed a hearing date are anything I go to file for weekly benefits and am told I got pay all back and misconduct at work. No warning ot nothing. I am trying to appeal not sure if I have ran out of time or anything since they did not tell me anything or in mail. I am really in a bind now with family was supporting and no job but top it off looks like I got to pay it all back now too. i had been employed with this company for 4 years. The work got slim and they got rid of alot of the employees and laid some off I heard. They are trying not to pay ayone. This is louisiana and I know states differ. Anyhow any advice I would appreciate. Thanks g gradygwyn@gmail.com

Tuesday, February 24, 2009 2:37:00 PM  
Blogger Unknown said...

They just pulled same thing on me and BEVER even advised me of hearing are rights are when was to even be held. After collecting unemployment for 2 1/2 months... Screwed me.

Tuesday, February 24, 2009 2:39:00 PM  
Anonymous Anonymous said...

My question is: you did put that you were fired on the application for unemployment, right? I'm in similar situation. I left my job to go to school out of state. When I couldn't get a job when I came home over the summer, I applied for unemployment. I put that I left my job for school, I was approved. Three months later, thats not 'good cause' and we want that money back. They tried to set up this phone conference between myself and my former employer and was coming off like I was just trying to deceive everybody. Well its been two years, I haven't paid a thing back.

Wednesday, October 07, 2009 1:05:00 PM  
Blogger Unknown said...

I just got a letter that I owe $14,000. I was approve 3/2010 so a year later. I can't even stop crying. Single mom with $100,000 in debt

Saturday, May 14, 2011 4:39:00 PM  
Blogger mbigbrat said...

Thanks for sharing. I am going though this now. My question is .. The first judge found me eligible and honored my unemployment.Because it was not deliberate or willfulness misconduct. I like you was blind sided on the second hearing and didnt realize that my manager and hr and their lawyer was going to be on the call. I got scared and choked and the Judge misunderstand waht i had said. Now i have to pay it back. I think that is so BS. My advice is to get a lawyer right away if the company appeals. I got a lawyer after the second appeal, which was to late. Had i got the lawyer right away . He stated i would have won. I just can't beleave the lies that the company came up with. After 14 years of loyal, honest and faithful service . I am having a hard getting over it. I will never work for a big company again.

Sunday, August 14, 2011 11:19:00 AM  

Post a Comment

<< Home



Entire website copyright © 2024 FedPrimeRate.comSM

This website is neither affiliated nor associated with The United States Federal Reserve
in any way. Information in this website is provided for educational purposes only. The owners
of this website make no warranties with respect to any and all content contained within this
website. Consult a financial professional before making important decisions related to any
investment or loan product, including, but not limited to, business loans, personal loans,
education loans, first or second mortgages, credit cards, car loans or any type of insurance.