As if being unemployed isn't hard enough, you also have to figure out how to pay for your life until you find another job. For many, working part-time is a temporary solution, but it brings up another concern: “Can you collect unemployment if you work part-time?”
In most U.S. states, if you're unemployed or working part-time after a furlough, you might be able to get partial benefits, as long as you meet the other eligibility requirements.
Generally, states take into consideration hours worked per week, gross pay amount, or both—and these factors also directly affect how much you get paid. The exact rules and guidelines vary from state to state.
So, here's what you need to know about unemployment benefits for part-time workers.
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Can you get unemployment if you work part-time?
Unemployment insurance (UI) programs exist to provide unemployment benefits for workers who became unemployed through no fault of their own and meet work and wage requirements, as determined by The U.S. Department of Labor.
If you were working full-time and had your hours cut, you might get unemployment benefits. “Part-time workers may be eligible if they are laid off or if their hours are significantly reduced,” says employment attorney Christopher Lyle.
You may also be eligible for unemployment if you were laid off and are working at another part-time job while looking for a new full-time job. In some instances, if you were already receiving benefits and then started a part-time position, it's possible that you'll keep getting paid, but at a reduced amount, depending on state laws.
In either case, part-time workers typically get partial unemployment benefits and must meet other eligibility criteria regarding wage and working hours. Though UI is a joint state-federal effort, each state has a separate program with its own rules and eligibility guidelines.
To understand the specific criteria for your state, consult with your state's unemployment insurance office. If you worked in a state different from where you currently live, be sure to check with that state's insurance office as well.
More need-to-know info: Will I Get Unemployment If I Was Fired? Answers Here
How do partial unemployment benefits work?
The idea behind partial unemployment benefits is to incentivize workers to keep their part-time jobs by supplementing their income until they find a full-time position. There's no set amount a part-time worker will earn. In most states the calculus of your benefits is either based on your weekly earnings, hours worked per week, or both.
For instance, New York's Department of Labor has an “hour-based” system for partial unemployment. With this system, your benefit is reduced in increments based on your total hours of work for the week rather than days worked. You can work up to seven days per week without losing your full benefits for that week, as long as your total working hours is 30 or fewer and your gross pay is $504 or less.
On the other hand, in Pennsylvania the payment amount is determined by what they call “Partial Benefit Credit” (PBC). Your partial benefit credit is 30% of your weekly benefit rate (WBR) and both are determined by the state once your claim is approved. The state adds your WBR and PBC, then subtract your earnings for the week from the total. You'll get paid the difference. (Note that your benefit amount cannot surpass your weekly benefit rate.)
It's important to document and keep track of your pay, and to be truthful when declaring your earnings. Any discrepancies can jeopardize your benefits, since your claim might be flagged as fraudulent. Some states, like New Jersey, may also require you to report your search for employment and prove that you don't refuse a suitable offer.
What are the partial unemployment benefits criteria?
Rules and guidelines vary by state. According to the National Employment Law Project (NELP), these are the most common scenarios in which a part-time worker qualifies for partial unemployment benefits:
- When there's an involuntary reduction in hours and wages at your current employer but you continue to work part-time
- When you lose a full-time job and accept part-time work while you're looking for full-time employment
- When you've been working multiple part-time jobs and lose one of them (which results in a reduction of your income)
So, yes, you can work part-time and still collect unemployment benefits, and you might also be eligible if you lose a part-time job, provided you meet your state's specific criteria.
Generally, you may not qualify for partial unemployment benefits if stopping work or reducing hours was your own choice. However, since each state has different guidelines, it's important to check with your state’s unemployment insurance office for detailed information.
How do I apply for unemployment benefits?
Most states allow workers to file a claim for unemployment benefits online. “To apply for unemployment, part-time workers need to file a claim with their state's unemployment office and provide documentation such as pay stubs, W-2 forms, and proof of reduced hours or termination,” Lyle says.
Other personal and professional information might be required, including your social security number and your former employer ID number (if applicable). In some states, like New Jersey, you can check your claim status on the unemployment insurance site as well.
Other states, like New York, follow up with claimants through phone calls, emails, or text messages, which should be answered promptly. Delays in communication can also delay your claim, result in a denial of benefits, or suspension of existing benefits.