Unemployment Compensation

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November 26, 2024

Client Story

Unemployment compensation is a safety net to catch you when you lose your job through no fault of your own—such as through layoffs, natural disasters, or a major incident like COVID-19. If you’re capable of working and are looking for a new job, but are struggling to pay bills for yourself and your family until you find your next one, then unemployment payments may help you close the gap. 

Context

If you lose your job through no fault of your own and you would like to receive unemployment benefits, you can file a claim for unemployment compensation with the Alabama Department of Labor online or by phone. If your claim is approved, you can choose to receive the benefits through direct deposit into your bank account, or you can choose to receive an AL Vantage Prepaid Benefits Card. 

It is important to remember that unemployment benefits are considered taxable income and are reported to the IRS. If you receive unemployment compensation, you can elect to have federal income taxes withheld from your benefits payments. 

How to qualify for unemployment compensation: Four factors to consider 

  • Have you earned enough wages? 
    • You must have earned a salary or a wage in at least two quarters of your base period to qualify for unemployment benefits.  
      • The base period is the first four of the last five completed calendar quarters before the week you call to file an initial claim application for a new benefit year. 
      • A calendar quarter is three whole consecutive months, usually Jan-Mar, Apr-Jun, Jul-Sept, Oct-Dec. 
      • This means that if you worked for two quarters of last year, lost work in the first quarter of this year, and applied for unemployment benefits in the second quarter of this year, the 2 quarters of the last year when you worked would count. 
    • In the entire base period, you must have earned at least one-and-a-half times your earnings in the highest paid quarter of the period. 
      • This means that a single high-paying quarter in an otherwise very low-paying year may not qualify you for unemployment. 
    • Your average quarterly earnings during the two highest paid quarters of the base period must meet the threshold set by law. 
    • Click here for more help understanding the base period. 
  • How did you separate from your previous job? 
    • If you left your job by your own choice, you’ll need to show good cause in order to qualify for benefits. 
      • Good cause can include cases where: 
        • The job hurts or makes worse an injury or illness, and the employer refuses to adequately accommodate for it 
        • The employer changes the terms of pay or the conditions of the job such that it is no longer viable 
        • Conditions at the job have become unsafe or unhealthy 
      • Good cause generally does not include personal reasons like long commutes, a requirement to travel for work, or life matters unrelated to the job. 
      • Note: You will generally be disqualified for weeks of work stoppage resulting from labor disputes such as strikes. 
  • You must be able, available, seeking, and willing to immediately accept full-time work, during the hours, days and shifts normally worked in the trade or industry for which your training and/or experience qualifies you. 
    • Essentially: you must be able and willing to take a similar job in the same industry as soon as one is available. 
    • Note: You are not eligible to file a claim if you reside outside the United States. 
  • Do you qualify for any special programs claims? Special programs include: 
    • Military employment 
    • Federal employment 
    • Educational employment  
    • Trade Act Program 
    • Reemployment Trade Adjustment Assistance (RTAA) Program 
    • Pandemic Unemployment Assistance 

Requirements

You will need

  • Your social security number 
  • Your Driver’s License or non-driver’s Alabama ID #  
  • Your Alien Registration Card, if you aren’t a permanent resident 
  • Contact information for your last two employers 
  • Include names, complete addresses, and telephone numbers for your employers, as well as the start and end dates of your employment with them  
  • Information and documents related to any federal civilian employment, military service, or work you did in another state in the past 18 months 
  • Your bank routing number and checking or savings account number, if you choose to have your unemployment payment deposited directly into your bank account. 
  • A four-digit number you can easily remember to use as a PIN number. You will need to use this in the future when you call in to discuss your unemployment claim. 
  • A pencil and paper to take notes 

Steps

Step 1: Filing a Claim for Unemployment Compensation

You can file a claim over the internet or the phone. Make sure that you file your claim by the Friday of the first week that you have become unemployed, or you may lose a week of benefits.

  • To file over the internet:
    • Go to www.labor.alabama.gov 
    • Click on Unemployment
    • Click on File Claim
    • Click on Establish a New or Reopen a UC Claim
    • Follow the prompts on the website
  • To file over the phone:
    • Call the toll-free number 1 866-234-5382. 
    • There will often a wait time when you call.
    • Make sure to set aside a few hours of your day when you file by phone.

After you file your claim, you should receive a decision in writing within 7 days. If you do not receive a decision within 7 days, contact the toll-free number above to ask why. If your claim is approved, you will receive your first benefits payment within 2-3 weeks. 

Once you have completed your claim, you must file weekly claim certifications to keep your eligibility. This rule applies even if a decision hasn’t yet been made about your claim, so be certain to do so even while waiting for the news.

Step 2: Filing Weekly Claim Certifications

Weekly certifications may be filed between 12:01 AM Sunday and 5:00 PM central time the following Friday. You must file your weekly claim certification by 5:00 PM each Friday to remain eligible.

Your weekly certifications, just like your application, can be performed online or by phone.

  • Visit www.labor.alabama.gov, or
  • Call by telephone and leave a message with the Automated Voice Response System.
    • The weekly certification telephone number for your area will be provided to you when you file your claim.To file your weekly claim certification, you will need the following:
  • Make sure you have your social security and your personal identification number (PIN).
    • If you forget your PIN, you must either complete security questions on the website or schedule a callback with the UC Claimant Inquiry Line for assistance.

When all the information has been entered and verified, you will be told that your certification has been accepted and is being processed. You must wait for this response to ensure that all your answers have been recorded. If one or more of your answers is potentially disqualifying, you will be told to call the UC Claimant Inquiry Line for a fact-finding interview.

If you choose to stop filing weekly claim certifications for any reason, your claim becomes inactive. If you make your weekly call and the system detects that your claim is inactive, you will receive a message informing you that you have a break in your claim series. In this case, follow the instructions provided or else you risk a loss of benefits. 

If the system detects that you have failed to call for at least two weeks or more, you will be instructed to reopen your claim by calling the Claims Line at 866-234-5382 (TTY available). Your claim will be reopened effective the week that you called and reopened claim.

Reported Earnings

You must report your gross pay (the amount you earn before taxes) for the week when you file your weekly claims certification. You must report all pay for this week, including any cash payments, even if you have not yet been paid. 


This amount should include any pay for work performed, wages paid while on a temporary layoff, and wages paid while on a scheduled break under a contract. If you have multiple employers, include wages from all jobs. Failure to properly report your earnings could result in an overpayment of your unemployment benefits. 

What if your claim is denied?

If your claim is denied you will receive a determination letter from the Alabama Department of Labor (ADOL) explaining the reasons for the denial. 
Carefully review this letter; it will explain the exact reasons why your claim was denied. Common problems with your claim may include insufficient earnings in your base period, issues with separation from your last job, or conflicts with specific eligibility requirements.

If you would like to appeal the denial of your claim, there are three levels of appeal:

  1. Administrative Hearing
  2. Appeals Board
  3. Circuit Court

How to File an Appeal

REMEMBER: Appeal requests must be filed within 15 calendar days of the mailing date of the original decision or within seven (7) calendar days if the decision was handed to you in-person. If the last day to file falls on a weekend or a state holiday, the deadline to file an appeal will be the next business day after the weekend or holiday.

You can mail, fax, or deliver the appeal, or file the appeal online at www.labor.alabama.gov. The mailing address and fax number for the Hearings and Appeals Division is shown below:

Alabama Department of Labor
Hearing and Appeals Division, Room 4677
649 Monroe Street
Montgomery, Alabama 36131
FAX: (334)956-5891
TELEPHONE: (800)321-9323

You must sign the appeal yourself and include your full name (printed), the last four digits of your social security number, and the reason why you do not agree with the decision made about your claim. It is best to file appeals by fax if possible, and to save the fax receipt in case DOL loses the hearing request.  


Once DOL processes your appeal, they will schedule a telephone hearing and mail a Notice of Unemployment Compensation Telephone Hearing to your address. It is important to promptly report a change of mailing address to the Unemployment Compensation Division.  


You do not need a lawyer in order to file an appeal or participate in the hearing; however, a lawyer can help you present the strongest possible case during the hearing and improve your chances of getting a good outcome. 


If you would like support in your hearing, you may contact Legal Services Alabama to see if you are eligible for our free services.  


After the hearing, the hearing officer will mail a written decision to you. If you disagree with the hearing officer’s decision, an appeal may be filed to the Board of Appeals. 

The Board of Appeals

The Board of Appeals is a three-member committee appointed by the Governor. Hearings are only conducted in Birmingham, Tuscaloosa, Dothan, Decatur, Oxford, Mobile, and Montgomery. 

An appeal to the Board of Appeals must be received by the Board of Appeals within fifteen (15) calendar days after the mailing date of the hearing officer’s decision. 

Your appeal should include your name, social security number, and the reason you disagree with the decision made on your claim. Make sure to address specific points that were not thoroughly covered in the appeal with the hearing officer. If the Board grants your appeal, they may decide it on the record or they may schedule a hearing. You will be notified of the time and place of the hearing. 

Appeals to the Board can be made by writing to:

Alabama Department of Labor
Board of Appeals Office, Room 2206
649 Monroe Street
Montgomery, Alabama 36131
FAX 334-956-7494

You may also submit your appeal request online at www.labor.alabama.gov/Appeals/.

Click here for frequently asked questions about the Board of Appeals.

Circuit Court

If you disagree with the decision of the Board of Appeals, you can file a complaint with the circuit court in the county where you live. If you live outside of the state of Alabama, you must file your appeal to the circuit court in the Alabama county in which you last worked or resided. While it’s not strictly necessary to have a lawyer represent you in this case, it is highly recommended. You have 30 days from the date the decision of the Board of Appeals becomes final to appeal to the circuit court.

Additional Information:

Click here for miscellaneous information about unemployment benefits.

Click here for more information about hearings and appeals.

Click here for a help chart of UC telephone and fax numbers.

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