Your employer carries insurance to help you when you become unemployed through no fault of your own. In Tennessee, employers pay the full cost of unemployment insurance for their employees so that nothing is deducted from an employee's pay to cover the cost of this insurance. The State of Tennessee does not contribute money to pay the cost of unemployment insurance for employees in this state. The State only administers the program. Tennessee's unemployment insurance program is governed by the Tennessee Employment Security Law and regulations, and is administered through the Tennessee Department of Employment Security.

Employees covered under the law and eligible for benefits include persons employed in private and governmental work, except certain non-profit organizations, certain parent-child employment arrangements, certain student employment services performed for their educational institution, and certain sales persons paid on a commission-only basis.

The Department of Employment Security regulations require every employer to furnish a separation notice to each employee whose employment is terminated or who is separated from employment for a duration expected to exceed seven days. The separation notice must be given by the employer to the separated employee within 24 hours of the separation and contain certain information from which the Department may accurately determine an employee's eligibility for unemployment benefits.

In order to be eligible to draw unemployment insurance benefits, two (2) criteria must be satisfied. A claimant must first show that he/she has been separated from the most recent covered employer through no personal fault. A claimant is ineligible for benefits if the separation was a result of (a) a voluntary quit without good cause; (b) a discharge for work-related willful misconduct; © or the claimant is involved in an ongoing strike of the employer. Secondly, a claimant must have earned sufficient wages during the base period to be monetarily eligible for benefits. In order to satisfy this part, a claimant must have earned at least $1508.02 in the two highest quarters of the base period, which includes any four of the last five completed calendar quarters immediately proceeding the first day of the calendar week in which an individual files a valid claim for benefits. An employee cannot have earned 65% or more of the qualifying wages in a single quarter of the base period. As noted, certain specific circumstances will disqualify a claimant from receiving unemployment benefits, such as a voluntary quit. A person who leaves the most recent employment voluntarily without good case connected with work, except if joining the armed forces of the United States, is generally disqualified from receiving benefits during the resulting period of employment.

In order for a claimant to receive benefits, he/she must first file a claim, thereby establishing a benefit year, and be either totally unemployed or at least earning less than the weekly benefit amount. The claimant must generally be "able and available for work", and be making a reasonable effort to secure work while receiving benefits. There is a one week waiting period following the filing of a claim before benefits begin.

The amount of the unemployment insurance benefits a claimant may receive each week is called his/her weekly benefit amount. This is calculated from an average of total wages paid to the employee during the two highest quarters of the base period. There is a minimum weekly benefit amount of $30.00, and a maximum weekly benefit amount of $275.00. The maximum benefit amount a claimant may receive is the lessor of 26 times the weekly benefit amount, or twenty-five percent of the total base period wages. This formula allows most claimants to collect from 13 to 26 weeks of benefits. A claimant may earn up to $30.00 a week in wages and still retain his/her eligibility for full weekly benefits. Wages earned in excess of the $30.00 limit, are deductible dollar for dollar from a claimant's weekly benefit amount.

After filing a claim for unemployment insurance benefits, all employers for whom a claimant has worked during his or her base period are notified. If an employer does not agree with the decision of the Department of Employment Security regarding a former employee's eligibility for benefits, the employer may object to or appeal that decision. An appeal does not interrupt benefit payments previously approved by the Department. However, improper benefit payments are subject to repayment by the claimant if an appeal reverses an award of benefits. Appeals from a Department of Employment Security decision are to an appeals referee, and must be made within fifteen (15) days of the initial decision, in writing, by letter or on a pre-printed form available at the Employment Security claims office. Appeals from the decision of an appeals referee are to the board of review, and must be made within fifteen (15) days of the referee's decision. A party may also request, within thirty (30) days, that a referee reconsider a decision. Any dissatisfied party may appeal the final decision of the board of review to the chancery court of the county of the party's residence.

Sick or disabled persons may also be disqualified, since a person forced to leave work because he was sick or disabled is considered "unable to work." The ability to work is not necessarily defined by the ability to perform one's usual duties. Workers are ineligible to receive unemployment insurance benefits for any week during which they were also receiving workers' compensation benefits for temporary partial or total disability under the Tennessee Workers' Compensation Law. Neither is a worker eligible for unemployment insurance benefits in Tennessee for any week the worker is also receiving or seeking unemployment insurance benefits in another state or from the United States. Vacation pay received by a claimant for any week of vacation, shut down or temporary layoff is deducted from an individual's weekly benefit amount. However, pension payments and Social Security benefits are not deducted. Workers who have not been lawfully admitted as permanent residents or who do not legally reside in the United States are ineligible to receive Tennessee unemployment insurance benefits.

The Tennessee unemployment insurance laws provide severe penalties against claimants making false or fraudulent statements, or willful withholding of material information, for the purposes of obtaining or increasing benefits. Such an offense is punishable as a felony in addition to a substantial fine or imprisonment of 1 to 3 years. Employers or citizens having evidence of unemployment insurance fraud may call the Employment Security Help Line's toll free number to report such cases. Reports will generally generate an investigation. The toll free number is 1-800

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The information available through TBALink LawBytes is basic legal information and is not a substitute for legal advice. LawBytes is provided by the Tennessee Bar Association as a public service and for general information only. It should not be considered legal advice. You should consult your attorney if you have questions concerning any specific situation. If you do not have an attorney, may we suggest that you contact your local bar association's referral service. The topics covered through TBALink LawBytes will provide basic information and should make it easier for someone with a problem to decide whether they need professional help from a lawyer or if another agency could provide them with assistance.