Unemployment Benefits

The special rules for unemployment eligibility for COVID reasons have mostly ended for new claims. This means that if you are sick and unable to work, whether to due to COVID or something else, you are generally not eligible for unemployment benefits. You also are generally not eligible for benefits if you stay home because your child is out of school or daycare due to COVID. It is possible the Vermont legislature may change the unemployment rules during this legislative session because people are still having problems due to COVID. Contact your state legislator for information about any new or returning COVID unemployment rules. See the DOL website for the latest information on this topic.

The answer to this question depends on the facts of each case and things like:

• why you refused to get vaccinated or boosted, and
• what kind of rules your employer put in place.

It is possible you may not be eligible for unemployment if you refused to get vaccinated or boosted and your employer requires it, but it will depend on the facts of each case. See the DOL website for the latest information on this topic.

If you quit your job, you can usually get unemployment only if you quit because your employer mistreated you or did something wrong such as refusing to provide a reasonable accommodation for a disability.

You may also be able to get benefits if you had to leave your job before October 1, 2021, for certain COVID-related reasons.

Usually you can’t get unemployment if you stop working for personal reasons or because you are so sick that you cannot work at all. You may be able to get unemployment if you have to leave your job for a health reason but are still able to do other work.

You have to look for a job while you are getting unemployment benefits. You also must report on your job search to the Vermont Department of Labor each week. You have to take a job you are offered if it matches your skills and experience. If you fail to comply with any of these things, your benefits will stop.

If you are eligible for state unemployment benefits, you can get those benefits for up to 26 weeks in a 12-month period.

Look at the list on the Department of Labor website. Be ready with as much information as you can. You may also need to give proof of your identity.

At this time, initial claims for unemployment benefits must be done by phone. Call 1-877-214-3330. Call Monday - Friday between 8 a.m. and 4:30 p.m. 

You can apply even if your employer says not to. Employers do not make decisions about unemployment benefits — the state does.

Before you contact the Department of Labor to make a claim, gather information from their list of required information. An adjudicator (someone who reviews your application) from the Department of Labor may call or email you if:

• information is missing, or
• you and your employer disagree about facts related to your eligibility.

The adjudicator may contact you while your application is pending or after you have already started getting benefits. Answer calls even if you do not recognize the number. Do your best to help the adjudicator find the information they need. This is a chance to explain why you think you are eligible for benefits and make sure that they have all the facts. If the adjudicator does not have enough information, they may decide that you cannot get benefits. Or they may decide you have to repay benefits that you have received.

Generally, if you are not a United States citizen, you are eligible for unemployment benefits if you have a valid authorization to work in the United States right now and you had one when you were working. The National Employment Law Project has an overview of what we know, and don’t know, about your eligibility for unemployment benefits in this time.

Undocumented immigrants cannot get unemployment benefits.

Do you live in Vermont? Do you have questions about your immigration status or authorization to work in the United States? Contact AALV or the South Royalton Legal Clinic.

Keep filing your weekly claim with the Department of Labor for every week that you are out of work or your hours were cut. Each week, you will have to certify that your situation has not changed.

Most Vermonters will have to do a work search and submit a report of this search each week in order to receive unemployment benefits. You need to provide details of at least three job-search contacts each week.

If you are exempt from the work search, you may be asked for more documents to keep your benefits.

Unless you have a good reason not to, work searches must be reported online. The Department of Labor is working on a process for people who do not have computers or internet to submit work search reports.

Learn more about the work search requirement on the Vermont Department of Labor website.

Typically the state determines your weekly benefit amount using this formula. The maximum benefit is $513 per week.

If you are told you don’t qualify for unemployment benefits, you can appeal that decision. You have 30 days from the date on the written notice to appeal.

These are the general steps to take for an appeal:

• Send a letter to the Department of Labor within 30 days of the date on your determination letter (the denial letter). Tell them you want to appeal. You may send your appeal letter by mail, email, fax or drop it off. The determination letter will have contact information for the Department of Labor, including fax numbers and addresses, or you can find that on the DOL website.
• See the Department of Labor’s website for details on what to include in your appeal letter. Keep a copy of your letter.
• If you’d rather use an appeal form, you can use the UI Claimant Appeal form. Fill it out and save a copy for yourself.
• Keep looking for a job and report to the department about your job search each week while you are waiting for the decision. This is important for you to get the most benefits.

Here is what happens after you file an appeal:

• An administrative law judge (ALJ) will review your claim and the decision you are appealing.
• You will have a hearing with the ALJ by telephone conference call. Your former employer will also have the right to be on the call. The call will be recorded. Both you and the employer will be able to testify under oath about what happened and submit documents. You must submit any documents to the Appeals Unit and your employer at least 24 hours before the hearing. If you want someone to testify for you, they must be on the same conference call.
• All of this information will be considered by the ALJ, who will decide if you should get benefits.
• For more information, see the back of your Notice of Hearing or see the Department of Labor’s website for more details on the appeals process.

If you want to appeal your unemployment claim decision, we may be able to help you. Fill out our form and we will call you back. Your information will be sent to Legal Services Vermont, which screens requests for help for both Vermont Legal Aid and Legal Services Vermont. You can also call us at 1-800-889-2047.

Do you get public assistance such as 3SquaresVT (food stamps), fuel assistance, General Assistance or Reach-Up? If so, you have to report the money you get from unemployment to each of those programs. Generally, you should report the money within 10 days of when you start to get unemployment. Your other benefits may be reduced or stopped while you are getting unemployment, depending on how much you get in unemployment benefits. You should also report to each of these programs when you are no longer eligible for unemployment benefits. That way you can get your 3SquaresVT, fuel assistance, General Assistance and Reach-Up back.

Do you get SSI benefits? In August 2021, Social Security announced that unemployment benefits received between March 2020 and present are not counted as income when calculating SSI benefits. These payments will also not be counted toward the resource limit for SSI for as long as you have the money. (You should still be sure to tell Social Security about the unemployment money.) If Social Security counted your unemployment benefits when calculating SSI, you could be entitled to the unpaid SSI benefits. You should make sure that Social Security has your current address and respond to requests for information. In most cases, Social Security will let you know about any payments by mail.

If you have subsidized housing, you should report your unemployment benefits to:

• your landlord (if you live in a subsidized building), or
• your housing authority (if you get rental assistance such as a Section 8 voucher).

If you live in Department of Housing and Urban Development (HUD) multi-family housing, HUD counts unemployment benefits as income. Your share of the rent may go up while you get unemployment benefits. You should also report when your unemployment benefits stop, so that your rent share goes down again.

Medicaid also counts unemployment money. You should report your unemployment money to Vermont Medicaid. If you get a letter that says your Medicaid is changing or ending, contact the Office of the Health Care Advocate (HCA). Call 1-800-917-7787 to speak with a health care advocate, or fill out their Help Request Form. The HCA is a free service for Vermonters.

It depends on what kind of benefits you got.

• Federal unemployment benefits paid during the pandemic can sometimes be forgiven, or “waived,” so you do not have to pay them back.
• If you have an overpayment for benefits you got between March 27, 2020, and September 6, 2021, part of the benefits you got were probably federal CARES Act benefits.
• The federal CARES Act benefits had lots of different names, like PUA, FPUC, PEUC, and MEUC. If you got a letter from the Vermont Department of Labor that says you were overpaid some type of CARES Act benefit, you can ask for a special waiver. If the Vermont Department of Labor grants your waiver, the federal portion of your overpayment is forgiven. You won’t have to pay that money back.
• Overpayments of state unemployment benefits are usually not forgiven. It depends on why you left your job, and what you told the Department of Labor about why you left.

How do I ask for a CARES Act overpayment waiver?

There are three ways to ask for a CARES Act overpayment waiver:

1. Email: LABOR.UIoverpaymentwaiver@vermont.gov
2. Fax: 802-828-4198
3. Mail: Vermont Department of Labor, Attention: Overpayment Waiver Request, P.O. Box 0488, Montpelier, Vermont 05601-0488.

Make sure you include your current address and phone number.

When you ask for a waiver, you must explain two things:

1. Explain why the overpayment was not your fault.

Some examples of why the overpayment wasn’t your fault:

• You gave all the necessary information to the Department of Labor when you filed your claims, and the Department made a mistake.
• You gave incomplete or incorrect information because you were confused and honestly misunderstood the questions or instructions. (Overpayments caused by purposely giving false information, or purposely leaving out information to get benefits, cannot be forgiven.)
• You did not understand the rules and tried to call the Department of Labor with questions but could not get through.
• You did not understand the rules because of a language barrier or because you cannot read very well.

2. Explain why it would not be fair to make you pay back the money now.

Examples of when paying back the benefits would be unfair:

• It will cause you financial hardship. You can show financial hardship if your income is very low and/or if you get public benefits like food assistance (3SquaresVT) or Supplemental Security Income (SSI). You can also show financial hardship with your pay records and bills. You cannot afford to repay the overpayment if all your money is already going to rent, food, utilities, and other necessities.
• You now have a disability or health problems that make it hard for you to work.
• You missed out on some other type of financial help, or the amount of other benefits you got was cut, because you were getting these pandemic unemployment benefits.
• You invested the pandemic benefits into a new business, or you would not be able to repay a business loan if you had to repay the overpayment.
• You took on a new financial obligation, like an apartment lease or a mortgage, because you were getting the federal benefits.

Tip: Attach paperwork to your request that supports that it would be hard for you to pay it back. Include documents like unpaid bills, benefit statements, or a doctor’s note. Be sure to keep a copy of your entire request.

What if I asked for a CARES Act overpayment waiver and I get a denial letter?

• If you miss the 30-day appeal deadline and the overpayment includes federal CARES Act money, you can still ask for the waiver of the federal benefits. If you are denied a waiver, you can appeal to an administrative law judge within 30 days. Look for instructions on the denial letter. This will not include any state benefits you got. State unemployment overpayments cannot be waived with a CARES Act waiver request.
• Asking for CARES Act waiver is not the same thing as appealing the overpayment. If you get a notice of overpayment, you have the option of asking an administrative law judge to decide whether the Department of Labor is right about the entire overpayment. You must ask for an appeal within 30 days of the date of the overpayment notice. Learn how to appeal, below.

If you need help, contact us to see if you qualify for free legal help.

Read the notice from the Department of Labor. If you feel you were entitled to the benefits you received and disagree that you were overpaid, you have 30 days from the date of the decision to appeal. The DOL cannot make you pay back benefits if you were entitled to receive them in the first place. The DOL also cannot make you pay back benefits if you did not misreport or fail to report anything to them.

Look at the written notice to find instructions for an appeal and contact information. (Or see above.) The appeal has to be sent within 30 days of the date of the determination letter, no matter how you chose to send it. See the Department of Labor’s website for details on what to include in an appeal letter. Keep a copy of your letter. If you’d rather use an appeal form, you can use the UI Claimant Appeal form. Fill it out and save a copy for yourself.

An Administrative Law Judge (ALJ) will review your case and you will have a phone hearing. See the back of your Notice of Hearing or the Department of Labor’s website for details on the appeals process.

If you need help, fill out our form. Your information will go to Legal Services Vermont, which screens requests for help for both Vermont Legal Aid and Legal Services Vermont. You can also call us at 1-800-889-2047.