Issues, Disqualifying Reasons and Penalties - Unemployment Insurance

The information below describes issues that may be associated with your unemployment insurance (UI) claim, and, if applicable, the types of penalties that may result from the issue. To see if there is an issue with your claim, select “Eligibility Issues'' from the left menu in your BEACON claimant portal.

NOTE: Your eligibility for UI benefits cannot be determined until you file an initial claim. After you file, the Maryland Division of Unemployment Insurance (the Division) will determine your eligibility.

ABLE AND AVAILABLE
To be eligible for UI benefits, you must be able and available for full-time work without undue restrictions. If you do not meet this requirement, your benefits may be denied until you are able and available for full-time work without restrictions.

NOTE: A part-time worker is an individual whose availability for work is restricted to part-time work AND who worked at least 20 hours per week in part-time work for the majority of weeks in the base period. To learn more about base periods, see the Claims Filing - Initial Claims FAQs.

If you are a part-time worker, you are required to be able, available, and actively searching for a job that offers the same number of hours as your previous position. However, if you worked less than 20 hours per week at your last job, you are required to search for positions that offer at least 20 hours per week of work. The work must be in a labor market in which a reasonable demand for part-time work exists.

To learn more, see the Claims Filing - Weekly Claim Certifications FAQs.

ACTIVE SEARCH FOR WORK
You must meet the active search for work requirement to be eligible for benefits (unless exempt). If you do not meet this requirement, your benefits may be denied. For detailed information about this requirement, see Maryland Work Search Requirements.

ALIEN STATUS
This issue may impact your claim if you are not a citizen of the United States, and your alien status must be determined as required by the U.S. Immigration and Naturalization Service to be eligible for UI benefits.

ATTENDING SCHOOL OR TRAINING
Your claim may have this issue if you indicated on your initial claim or weekly claim certification that:

• you are currently attending school or training; and,

• the school or training may interfere with your availability to work.

DISCHARGED FROM EMPLOYMENT
If you were discharged from employment due to misconduct, your UI benefits may be delayed or denied, depending on the reason you were discharged.

• Misconduct - Misconduct refers to a circumstance where an individual is discharged from employment due to behavior connected with the employment (and that is not gross or aggravated misconduct). If you were discharged for misconduct, your benefits will be denied for 10 to 15 weeks.

  NOTE: The following circumstances are not considered misconduct: simple negligence with no harmful intent; inefficiency; unsatisfactory conduct that is beyond the claimant’s control; or a good faith error of judgment or discretion.

• Gross Misconduct - Gross misconduct means conduct that is either: a deliberate and willful disregard of standards of behavior; or showing a gross indifference to the employer’s interests or a series of repeated violations of employment rules.

  If you were discharged for gross misconduct, your benefits will be denied until you become reemployed and earn 25 times your weekly benefit amount in insured work.

• Aggravated Misconduct - Aggravated misconduct is defined as behavior that consists of physical assault, property loss, or property damage so serious that neither simple nor gross misconduct penalties would apply.

  If you were discharged for aggravated misconduct, your benefits will be denied until you become reemployed and earn 30 times your weekly benefit amount in insured work.

EMPLOYMENT IN ATHLETICS (REASONABLE ASSURANCE)
If you are employed in a sports-related job and are out of work between seasons, but you will return to work when the next season starts, you may not be eligible for benefits because you have reasonable assurance of returning to work during the next athletic season.

To determine whether a claimant has reasonable assurance, the Division examines the type of communication the claimant received, who was involved in the communication, when the communication was issued, and the claimant’s work history. A claimant refers to an individual who submits a claim for unemployment insurance benefits.

FILING PROPER CLAIMS
If you do not file a weekly claim certification on time for each week that you are unemployed, your benefits may be delayed or denied (starting from the first week that you did not file a timely weekly claim certification). If your benefits are delayed/denied due to this issue, contact a claims agent (667-207-6520, Monday to Friday, 8:00 a.m. to 4:00 p.m.).

NOTE: Weekly claim certifications are required to be filed between 12:01 a.m. on Sunday, and 11:59 p.m. on Saturday, immediately after the week for which you are requesting UI benefits. If you file after Saturday at 11:59 p.m., your claim certification is considered late. For more, see the Claims Filing - Weekly Claim Certifications FAQs.

FRAUD
If you knowingly made a false statement or failed to give important facts in order to obtain or increase your UI benefit payments, the Division may determine that you committed UI fraud.

If you are determined to have committed UI fraud, penalties may include a denial of UI benefits for up to one year and repayment of all fraudulently-acquired benefits, plus penalty fees and interest. In addition, you may be subject to a $1,000 fine and you may be prosecuted for fraud. To learn more about fraud, see the Overpayments and Fraud FAQs.

FRAUD OVERPAYMENT
A fraud overpayment occurs when a claimant is determined to have committed UI fraud, and as a result, is considered overpaid for all UI benefits acquired fraudulently.

If you are determined to have committed UI fraud, you will be required to repay all UI benefits that you acquired fraudulently, with a 15% penalty, and a 1.5% monthly interest payment, and you will be disqualified from receiving UI benefits for up to one calendar year. In addition, you may also be subject to a fine of up to $1,000, imprisonment, or both. For more information, see the Overpayments and Fraud FAQs.

INSUFFICIENT BASE PERIOD WAGES
This issue may be attached to your claim if there is a question concerning your monetary eligibility for benefits. Claimants must earn enough wages in either the standard or alternate base period to be eligible for UI benefits. To learn more about base periods and monetary eligibility, see the Claims Filing - Initial Claims FAQs.

LABOR DISPUTE (STRIKE)
If you are not working because of a labor dispute (other than a lockout) at the premises where you were last employed, you may not be eligible for UI benefits.

NOTE: You may be eligible for UI benefits if you, or a class/grade or workers that you belong to, are not participating in, financing, or directly interested in the labor dispute.

LATE APPEAL OF ELIGIBILITY
Your claim may have this issue if you did not file your appeal within the required time period. Appeal deadlines are included on the determination notice. More information about filing an appeal with the Lower Appeals Division or the Board of Appeals is available on the Division website.

LEAVE OF ABSENCE
If you are on a leave of absence, you may not be considered unemployed for UI purposes, as you are still connected to your employer. The Division will determine your eligibility after you file an initial claim.

MEETING REPORTING REQUIREMENTS
To be eligible for UI benefits, you are required to be available and/or contact the Division and/or the Maryland Division of Workforce Development and Adult Learning (DWDAL) when instructed to do so.

If you fail to meet this requirement, your UI benefit payments may be delayed/denied until you contact the Division or participate in the required DWDAL program.

• If you are selected for a Reemployment Services and Eligibility Assessment (RESEA) workshop or Reemployment Opportunity Workshop (ROW), you are required to attend and complete the workshop to be eligible for UI benefits. For more, see Unemployment Insurance in Maryland; A Guide to Reemployment.

MILITARY BENEFIT ENTITLEMENT
Your claim may have this issue if you recently separated from the military, and it must be determined if you are eligible for federal unemployment insurance benefits.

MONETARY ELIGIBILITY
Your claim may have a monetary eligibility issue if:

• you worked full or part-time during a week and you earned more than you reported;

• you received holiday pay, vacation pay, special payment, bonus or severance pay; or,

• there is a question concerning your monetary eligibility for benefits or dependents' allowance.

For information about the payments claimants are required to report, see the Claims Filing - Initial Claims and the Claims Filing - Weekly Claim Certifications section of the Claimant Most Frequently Asked Questions webpage.

NOT UNEMPLOYED
Your claim may have this issue if you:

• worked full-time during a week;

• or

• were self-employed on a full-time basis, regardless of whether you earned any money.

You are not eligible for UI benefits if you are working full-time, regardless of whether you earn more or less than your weekly benefit amount.

OPTION TO FILE IN OTHER STATE
Your claim will have this issue if you may be eligible for benefits in another state that you worked in during the base period. To learn more about the base period, see Claims Filing - Initial Claims FAQs.

If you worked in more than one state and qualify for UI benefits in either state, you may only file in one state at a time. If you have a question about which state you should file a UI claim in, call a Maryland claims agent at 667-207-6520. For more contact options, see the Claimant Contact Information webpage.

OVERPAYMENT
The Division may determine you are overpaid if you received UI benefits for which you are not eligible. You are required to repay all overpaid UI benefits and any additional fines, penalties, and interest, unless the overpayment is overturned on appeal or waived. If you do not repay your overpayment on time, legal action may be taken to collect the amount owed. For more information about overpayments, see the Overpayments and Fraud FAQs.

PENSION/RETIREMENT PAYMENT
You must report any lump sum or monthly retirement payments (from any employer you worked for in the last 18 months) on your initial claim. Retirement payments include: pension, annuity, or retirement/retired pay (from a trust, annuity, profit sharing plan, insurance fund, insurance or annuity contract, or any similar lump sum/periodic payment).

If you receive your first retirement payment after filing your initial claim, and you did not previously report the payment to the Division, you must report the payment on your weekly claim certification. You must also report changes to your payment amount by calling a claims agent (at 667-207-6520). The Division will determine if your pension will impact your benefit payments.

RAILROAD OR OTHER STATE ELIGIBILITY
If you have applied for, or are receiving, benefits under the laws of another state or federal program (such as railroad unemployment insurance), your Maryland regular UI benefits will be denied (as long as you receive benefits under that law.)

REFUSED JOB OR JOB REFERRAL
If you fail to apply for available, suitable work (unless exempt) or if you fail to accept such work when offered to you, your benefits may be denied:

• for 5 to 10 weeks (if there are mitigating circumstances); or,

• until you become reemployed and earn at least 10 times your weekly benefit amount in covered employment.

If you refuse an offer of work, the Division will determine if the job was suitable and if you refused with good cause.

SCHOOL EMPLOYMENT (REASONABLE ASSURANCE)
If you work for an educational institution, you may not be eligible for benefits during the period between academic years or during a vacation period if you have reasonable assurance that you will be employed when the academic year resumes/the next academic year begins.

To determine whether a claimant has reasonable assurance, the Division examines the type of communication the claimant received, who was involved in the communication, when the communication was issued, and the claimant’s work history.

SECOND BENEFIT YEAR ELIGIBILITY
If you haven’t worked since your benefit year began and your benefit year has expired, you may not be eligible for benefits until you:

• become reemployed; and

• earn at least 10 times your new weekly benefit amount in covered employment. Example: If your weekly benefit amount for the new benefit year would be $175, you must have earned $1750 since your first benefit year began.

Note: Your benefit year is a one-year period that starts on the Sunday of the week in which you file your initial claim. For example, if you filed your initial claim on Friday, March 6, your benefit year would start on Sunday, March 1.

SEVERANCE PAY
If you received or will receive severance pay, dismissal pay, [or] wages in lieu of notice, you will not receive UI benefit payments until your severance/dismissal pay is exhausted.

Severance payments are deductible from UI benefits based on the number of weeks of your regular wage that they cover. Once your severance payments are exhausted, if you are otherwise eligible, your benefits may be paid.

SUPPORT OBLIGATIONS
If you are required by court order to pay child support, the child support may be deducted from your weekly unemployment insurance benefit amount. You will be notified if child support is withheld from your UI benefit payments. For inquiries about child support withholdings from your UI benefits or adjustments to these withholdings, email ui.childsupportassistance@maryland.gov.

VOLUNTARY QUIT EMPLOYMENT
If you voluntarily quit your job without good cause or valid circumstances attributable to your employment, your benefits will be denied:

• until you become reemployed, and you earn at least 15 times your weekly benefit amount in covered employment.

If you voluntarily quit your job with good cause or valid circumstances attributable to your employment, and you meet all other eligibility requirements, you may be eligible for UI benefits. However, your benefits may be denied:

• for five to 10 weeks.

WORK SHARING ENTITLEMENT

Your claim will have this issue if you are participating in a Work Sharing plan and there is a question about your eligibility for UI benefits under the Work Sharing Unemployment Insurance Program.