How and When to File for Unemployment

You've lost your job. Bummer. Unemployment will deal you lots of harsh blows over the coming weeks and months. Don't let undue financial stress be one of them. I mention this because, believe it or not, some people are squeamish about filing an unemployment claim, too proud to take "handouts." I know this because I was one of those people, and it cost me thousands of dollars. Don't let your pride get in the way of your financial well being! It's one of the dumbest things you can do. Trust me on this. You have paid into unemployment for your entire working life. There is no shame in taking it when you need it.

So what is a good reason to file?  File your claim if you were terminated for any reason other than gross incompetence or excessive absenteeism/tardiness. Even if you were terminated for those reasons, if you have grounds to dispute those reasons, file the claim anyway and contest your former employer's denial of claim. I actually successfully did that, so it can be done. The only thing state unemployment offices hate more than fraudulent claimants are employers who cut jobs and try to wiggle out of their responsibilities. For once, it's an even playing field.

OK, so now you've decided to file. Where do you start? Many states give you the opportunity to file your claim online, but I recommend against that. It is a good idea to file your weekly claim online once you are "in the system," but filing your initial claim that way can delay things. It opens up the door for mistakes and inaccuracies that can delay your claim. A delayed claim costs you money because you only have six months (plus an extension, if you play that correctly) after your last day of work in which to collect. If you don't get a job within six months, and your claim was delayed by a month, that costs you one month of benefits -- a substantial amount of money. So do it right. Get on the phone and talk to a real, live human being, at least for the initial claim.

When to call: Call the morning of the first workday on which you are not working. If your last day of work was Friday, call Monday morning. If your last day of work was Tuesday, call Wednesday morning. The reason you have to call ASAP is that the clock starts ticking on your claim from the moment you are unemployed. As I mentioned above, you are only covered for six months so make sure to file immediately after losing your job.

I can't stress this enough: You must be prepared with all the information you'll need when you call. They will ask you a bunch of questions, and if you are not ready with the answers -- or if you answer inaccurately -- it could end up costing you. This information can be extensive and beyond the scope of this article. Anyway, be ready to answer questions.

The takeaways from this article:

1) File your initial claim by phone

2) File your claim the very first day you are unemployed

3) Be ready to answer the questions

Good luck!