Unemployment for being temp. let go?

Question

My fiance's company is letting a few people go because there is no work and the company may be going under. In the next few months, either the company will go bankrupt and close or they'll want to hire him back when they get more jobs (He's an electrician).

We're unsure if they are "officially" laying him off or if they are just putting him on "stand by" and telling him not to come to work for a few months. Regardless, can he collect unemployment benefits until he can find another job, even if it's temporary? If the company is flat out broke, who will pay for the benefits or will he not qualify on the grounds that there's no money to pay him?

Answer 1

Benefits are paid as you go while working, not afterwards. So yes he can collect unemployment now!

Answer 2

Q. Regardless, can he collect unemployment benefits until he can find another job, even if it's temporary?
A. Yes

Q. If the company is flat out broke, who will pay for the benefits or will he not qualify on the grounds that there's no money to pay him?
A. The benefits are always paid from a fund administered by the state government. The employer being broke may impact whether the employer pays the proper amount into that statewide fund, but not enough to cause the statewide fund to go bankrupt. He will still be able to collect.

Answer 3

In some states (if not all) he is entitled to collect unemployment compensation.

When he is let go, typically there will be information concerning this in the materials he receives from his employer. He should also receive a notice of what will happen to his employer-paid benefits (ie health insurance), his retirement (ie pension or 401k) as well as his accumulated paid time off (vacation/sick, etc).

Most states have a web site with official information concerning unemployment benefits - ie how long it lasts, if there is currently any weeks of Federal unemploymet or if it is only state unemployment. There will also be info on how to apply, when your first check will arrive, etc. You should google your state with the words "unemployement compensation" to find accurate info.

Where I live, folks should apply the very day they are let go. There is a 2 week waiting period for which they are not paid - so the sooner you start your claim, the sooner the benefits can start. Here folks can apply online, rather than have to stop in the office in person, which can be very helpful.

Answer 4

From your question, I am unclear if he is actually an employee or an independent subcontractor. If he is a subcontractor, he is never entitled to unemployment compensation. If he is an employee, his benefits would be paid though the state to which unemployment insurance premiums were paid. In some cases, companies are allowed to self-insure. The rules for this are usually very strict and would not allow the option to any company that could be going broke.

Answer 5

The state takes unemployment compensation funds from employers an a monthly basis. This company has been paying into the fund for years. It is a state fund, not dependent upon the viability of the employer for assets. If he worked the required amount of time, he will be eligible for unemployment at the rate set by your state.

Answer 6

You were eligible for unemployment the day they re-located the job. I have a bit of difficulty understanding the exact circumstances but if the work location was changed beyond a reasonable distance, you are qualified. In any case you should be entitled to a hearing and should request one right away. Keep your explanation simple: the job was relocated, you stayed on to train a replacement, and requested work in a more realistic location. I'm from New York and here there is a consideration for traveling to a job and having a realistic commute. I'm pretty sure it should be applicable in any state.