A temporary layoff may refer to when an employer removes staff employees from their jobs for a certain period of time. A temporary layoff may occur for a number of different reasons, such as:
- When a job is only intended to be a seasonal position;
- If the company is undergoing construction or renovations;
- When an employer is in financial trouble and is forced to reduce their labor costs for a short amount of time; and/or
- If the weather renders the work impossible (e.g., construction work during the winter), so that operations must be temporarily suspended.
This is in direct contrast to permanent layoffs, which can happen when a company lacks work and/or profits and cannot afford to keep their entire workforce employed. For instance, if a particular branch of a company does not seem to be generating any revenue, then the company may decide to permanently lay off some workers or eliminate that entire branch.
Layoffs remain common in today’s economy. They happen for many reasons, including company restructuring, rising costs, slowing sales, the use of new technology like AI, and shifts in trade or tariff policy. Some businesses close down or file for bankruptcy, which means workers are laid off for good. Other companies pause operations for a short time and put workers on temporary leave instead. Either way, losing a job often means losing wages and health benefits, so workers turn to unemployment to help cover the gap.
In some instances, a business may have permanently closed or went bankrupt. In which case, its employees would be permanently laid off. On the other hand, some companies opted to temporarily stop operations and therefore only had to temporarily suspend some of their workers.
This has led to many workers losing healthcare benefits as well as wages or a salary, which in turn, has caused the number of applications to collect unemployment benefits to spike.
Eligibility for unemployment benefits in 2026 is based on standard state rules. Each state runs its own program and sets its own work history requirements, income limits, and benefit amounts. Most workers must have lost their job through no fault of their own and be able and ready to work to qualify.
Can I Collect Unemployment Benefits If I Have Been Laid off Temporarily?
As previously discussed, the pandemic has caused an unprecedented number of workers to apply for unemployment benefits. Some workers were permanently laid off, while others are still awaiting a decision from their company as to whether their layoff is temporary or permanent.
In addition, the pandemic has also made it possible for workers who normally are not allowed to collect unemployment benefits, such as independent contractors and those who are self-employed, to receive them. Under the CARES Act of 2020, if an individual was temporarily or permanently laid off from their job because of the coronavirus, then they may be eligible to collect unemployment benefits from the state in which they work.
Depending on the laws of a particular state, an individual is usually permitted to collect unemployment benefits during the period in which they are temporarily laid off if their employer is not already paying them in full for a mandated layoff period. This may be true even in instances where a business regularly plans for seasonal layoffs. Such a scenario is very common in some states, e.g. Alaska.
In other states, however, if an individual is given the opportunity to work somewhere else, such as a different branch of their company, and they reject their employer’s offer, then it could mean forfeiting their right to collect unemployment benefits for that time frame.
Similarly, if an individual declines their employer’s offer to pay them for the time that they are temporarily laid off, then they will not be able to collect any unemployment benefits. The reason for this is because an individual who collects unemployment benefits when their employer has already offered to pay them will be considered to be committing an act of employment fraud.
Committing employment fraud is a very serious matter that can result in both criminal and civil penalties.
Process/steps: Applying for unemployment benefits depends on the process in the state in which a person works, but the process is generally not complicated. An individual can file a claim with the unemployment insurance program in the state in which they worked. Generally, the claim can be filed in person, by telephone, or online.
- You should contact your state’s unemployment insurance program as soon as possible after you are laid off.
- Generally, you should file your claim with the state in which you worked. If you worked in a state that is not the state in which you live or worked in several states, the unemployment insurance agency in the state you live in now can give you information about how to file your claim with other states.
- When you file a claim, you will be asked for certain information, such as the addresses of your past employers and dates of your former employment. You might want to prepare to apply by having this information at hand. Be sure to complete the application completely and correctly.
- It usually takes 2 to 3 weeks after filing to receive your first benefit check.
Evidence/Documents: As mentioned, to support an unemployment benefits claim after a layoff, individuals need to provide information and may also need to submit documentation. For example, they would need to provide their Social Security number, driver’s license or other form of identification, and contact information. They will also need to provide employment history, including the employer’s name, address, and dates of employment. A layoff notice or any documentation related
Timelines: The length of the temporary layoff can affect a worker’s eligibility for unemployment benefits. Some states set a minimum period of time for which unemployment must last if the worker is to qualify for benefits.
In addition, benefits do not necessarily last for the full length of a person’s lay off. If the lay off lasts for a long time, benefits may be exhausted. Claimants should check their state’s specific laws regarding the duration of benefits.
For example, in Florida benefits are paid for a maximum of 12 weeks, and the total amount paid is limited to $3,300 for claims filed in 2025 and 2026. That 12-week figure is not fixed, because Florida ties the length of time for which benefits are paid to the unemployment rate in the state. If state unemployment is high, unemployment might be paid for as long as 23 weeks, which would be the maximum. If unemployment is low, benefits are paid for a shorter period of time, e.g. 12 weeks.
Does It Make a Difference If I Volunteered for the Layoff?
In general, it usually does not make a difference as to whether or not an individual volunteered to be laid off when it comes to collecting unemployment benefits.
The lone exception would be if the individual volunteered to be laid off for personal reasons, rather than for the purposes of benefitting their company. Some examples of scenarios wherein an individual may volunteer to be laid off by an employer include when:
- They want to return to school;
- They want to get married and need extended time off; and/or
- They wish to become self-employed.
Can I Extend My Unemployment Benefits?
If an individual was granted unemployment benefits when they were initially laid off and the length of their layoff period gets extended, then they should not encounter any issues if they request to receive an extension of their unemployment benefits as well. However, it is important to understand that unemployment benefits are not paid forever. A state is likely to specify a period of time which is the maximum period for which benefits are paid.
For example, as noted above, in Florida the maximum time is 23 weeks.
If the layoff becomes permanent, however, then whether an individual can extend their unemployment benefits will largely depend on the reasons as to why the layoff became permanent.
For example, if the reason the layoff became permanent was the same as the original reason for the temporary layoff, e.g., the company was downsizing, then there should not be a dispute about whether the employee can continue to collect their unemployment benefits.
On the other hand, if the layoff situation becomes permanent because the individual either voluntarily quit their job or due to some type of misconduct on their part, then collecting unemployment benefits would probably no longer be an option for them.
It is important to note that not all reasons for quitting justify a denial of unemployment benefits. There are certain scenarios provided in the employment laws in each state that specify when it may be appropriate to grant an exception for unemployment benefits as well as what types of unemployment benefits the individual can collect based on their circumstances.
If an individual has voluntarily left their job for a particular personal reason, then it may be in their best interest to speak with a local employment lawyer about the matter. A lawyer will be able to offer legal guidance on how the individual may be able to resolve their unemployment benefit issues.
Fees/Costs: In many cases, there are no direct fees associated with receiving unemployment benefits. Such benefits are usually processed through employer contributions and federal taxes. However, seeking legal assistance for these issues may result in attorney fees. It might be wise to consult a lawyer before you voluntarily leave your job in order to know how best to do it and what benefits, if any, you might be entitled to.
The Importance of Hiring a Lawyer: Generally, there is no fee or cost for applying for unemployment benefits. However, it is also important to understand that an employer may object to the application of a former employee for unemployment benefits. If this happens, the employee may wish to consult a lawyer for guidance. They may need a lawyer’s representation to win their benefits in this situation.
Can I Collect Unemployment if My Job Was Cut Due to Industry or Economic Changes?
Workers laid off due to broader economic changes, such as industry downturns, automation, restructuring, or shifts in demand, are generally eligible for unemployment benefits. This includes workers placed on furlough or who lost their jobs in mass layoffs.
Workers facing permanent layoffs from these same causes are also eligible. The amount and length of benefits will depend on state law and recent earnings.
What if My Hours Were Reduced?
Workers whose hours have been cut may still qualify for partial unemployment benefits. The amount and length depend on state employment law and current earnings.
The state will look at whether the employer is still paying wages during the reduction, and if so, how much. In many cases, workers with reduced hours receive a partial unemployment payment instead of the full weekly amount.
Do I Need to Contact a Lawyer About My Layoff?
Since the laws and procedures regarding the collection of unemployment benefits can vary significantly from state to state, it is generally recommended that persons facing such issues consult a local employment lawyer for further legal guidance.
An experienced employment lawyer will be able to discuss the relevant laws that may apply in your state and can advise you on the different options that may be available to you for collecting your unemployment benefits. Your lawyer can also assist you in appealing a decision or amending your paperwork if your claim for unemployment benefits has been rejected or denied.
Those who intend to hire a lawyer to resolve errors with an application for unemployment benefits or to help them file an appeal should not delay in finding the right employment lawyer to take their case. Otherwise, you may miss the chance to appeal a decision. Appeal deadlines vary by state, often falling between 10 and 30 days from the date of the decision notice. Missing this window can block further review of the claim.
In addition, your attorney can also inform you of your rights as a worker under the law and can discuss other options for legal recourse, such as initiating a class action lawsuit against an employer if you and your colleagues were fired or punished for participating in a strike or walk out.
