If you decide to quit your job, there’s still a good chance that you will be eligible for unemployment insurance benefits. But that depends on the reason you had for quitting, and whether you made an effort before you quit to solve the problem or address the issue that made you decide to quit.
The basic rule is that if you quit your job, you can only be eligible for unemployment insurance benefits if you quit because of “good cause.” “Good cause” includes two parts. First, to have “good cause,” you need to quit because of a good enough reason. In other words, you need to have a reason that would make a reasonable person in your circumstances, who wants to work, decide to quit. But having a good reason is often not enough. You also need to first try to solve the problem before quitting. You don’t need to try everything possible to fix the problem, but you usually need to take some steps so that you or your employer can fix the problem before leaving your job, unless you know that trying to solve the problem cannot possibly work, or you are in an emergency situation.
Below, we will review common situations that do and do not normally qualify as good cause, as well as other steps you should take to make sure you are eligible for benefits.
What Usually Qualifies As “Good Cause”:
When do you have “good cause” to quit?
When both of the following are true:
You have a good reason to quit. In other words, you have a reason that would cause a reasonable person in your circumstances to quit. Judges call this a “real, substantial, and compelling reason.”
You have tried to solve the problem with your employer before quitting. You do not have to do everything in your power to keep your job, but you do have to take “reasonable steps” to try and keep it (some examples are covered below).
There are lots of reasons why you might have a good reason to quit. Here are some of the most common reasons that are good reasons to quit:
Having a good faith fear for your health or safety because of the job.
Needing to care for a child or sick family member.
Experiencing abusive treatment (for example, hostile, vulgar language; sexual jokes or comments) or unsafe working conditions.
Refusing to perform an illegal act ordered by a supervisor.
Your employer greatly reducing your rate of pay (for example, by 20% or more) or downgrading your position.
Your commute becoming much more difficult, time-consuming, or expensive (for example, you have to move because your partner or spouse gets a new job; or you lose your ride to work and taking public transportation is much worse).
But remember, in most circumstances, even if you have good reason to quit, you need also try to solve the issue with your employer before quitting. Some common ways the EDD looks for people trying to keep their job include:
Discussing the problem with your employer/supervisor and giving them time to come up with a solution.
Asking for a different schedule if time constraints are the issue.
Asking for a temporary leave of absence, after which you can return to your normal job.
Trying to resolve interpersonal conflicts directly in some way.
NOTE: This rule also applies if the problem or issue leading you to quit is outside of the workplace (for example, if childcare responsibilities are forcing you to quit, the EDD will look to see if you explored other childcare options).
At the same time, however, if engaging with your employer would only escalate the situation (for example, if your employer is behaving abusively towards you) or you are in an emergency situation (for example, with regards to your health), you do not have to go through this process. You also do not have to do everything humanly possible to keep your job. In the end, the EDD is looking for you to take “reasonable steps” to preserve your job – you do not have to do 100% of the things in your power to keep your job, just some reasonable steps within your ability.
Examples That Usually Do Not Qualify As “Good Cause”
There are also many common reasons people quit that the EDD will not usually accept as good cause. These include:
Leaving to start your own business or start school.
Quitting because you are worried you are going to be fired.
Normal conflicts or differences of opinion with your supervisors/manager.
Lack of opportunity for advancement.
Stress from your job that is not caused by abuse and is not seriously affecting your health.
Having your schedule changed or your hours reduced, unless it is an extremely significant reduction, or breaks a contract you signed.
When applying for benefits after you have quit your job, it is important for you to be honest and forthright on your application about the real reasons you quit. Think about your reason or reasons for quitting with all this information in mind and do your best to frame your situation in a way so that you will be eligible. Keep in mind the EDD may follow up with you about the answers you give, and your employer will also be asked about the circumstances of your separation. It is in your interest to be completely honest because the EDD may apply serious consequences if it determines that you have made a “willful false statement” on your application. For more information about when the EDD decides you have made a willful false statement, see our fact sheet False Statement.
What If My Employer Forced Me to Quit?
Sometimes, an employer has made the decision to fire an employee, and the employee is given the option to either quit or be directly fired by their employer. Many employees choose the option to “quit”, with the thought that quitting might look better on their record, as they are searching for new work, than having been fired. However, for purposes of unemployment insurance benefits, when the EDD looks at a situation like this, they take the view that you were discharged, rather than quit, because the decision was not really up to you – if you had not quit, you would have been fired. This is actually a good thing: because the EDD views the situation as a discharge, they should grant you benefits, unless you were discharged for “misconduct.” See our fact sheet on what constitutes misconduct.
I Am Thinking About Quitting My Job – What Should I Do?
If you are still working, but are thinking about quitting, there are some things to keep in mind and to make sure to do. First, keep in mind the information above – there are some reasons for quitting where the EDD will most likely deny you benefits (for example, if you quit to look for better paying work).
As mentioned above, even if you did have a good enough reason to quit your job, sometimes the EDD will investigate whether you made an effort to keep your job, or to improve the situation that is causing you to quit. For example, if you have new responsibilities at home that prevent you from working in your normal fashion and you feel like you need to quit, you should try and discuss this with your employer and ask if they can accommodate your situation. Is it possible to adjust your schedule? Or would it be possible to take a temporary leave of absence and then return to work later? This is just one example, and the types of solutions you might explore will be different depending on the specifics of your situation. But these are the types of questions the EDD may very well ask you – even if the issues causing you to quit your job don’t have a real solution, it is in your interest to explore these options so that you can tell the EDD you made an effort to keep your job.
The EDD Said I Am Ineligible Because I Quit My Job Without Good Cause – What Should I Do?
How to Argue Against This Determination at an Appeal Hearing
When you appeal, you’ll have a hearing before a judge, where you can explain what happened at your job and make arguments about why the EDD’s decision is wrong. When you are at the hearing and answering the judge’s questions, there are some common explanations to argue against the decision that you voluntarily quit your job without good cause. Here are some common defenses you can use:
I didn’t actually quit my job.
There are different circumstances where the EDD might think you quit your job, but that’s not what actually happened.
For example, if you had a contract to work for a specific amount of time, and that contract ended but was not renewed or you didn’t sign a new contract, that is not “quitting.”
Another example is if you were told by your employer that you could resign or be fired. In this case, you can argue that did not leave your job voluntarily, so this is also not “quitting.” Unfortunately, many judges may still see this as a decision to quit. You should still make your case as strongly as possible to possibly appeal an unsuccessful decision from the judge.
Be sure to explain the circumstances that led up to you leaving your job to the judge very carefully, so they can accurately determine who actually made the decision to end your employment.
You tried to resolve the issue before deciding to quit.
If you did voluntarily quit your job, you have to explain to the judge what steps you took to resolve the issue that led to your quitting before making that decision. The EDD calls this taking “all reasonable steps” to resolve the issue.
Remember that the steps the EDD is looking for only have to be “reasonable.” You do not have to try everything humanly possible to resolve the issue – only those steps that normal people would commonly take.
Review the examples above about what these steps normally look like. They include things like requesting a leave of absence, telling your employer that there is a problem with your job, or if the issue is more personal (like needing childcare while you work), then what steps you took to resolve your personal issue.
You didn’t discuss the issue with your employer because you knew that the situation would not change.
In many instances, workers know that if they have a problem with their job, their supervisor or employer will not help. One reason is because the supervisor is the one causing the problem (for example, by harassing or acting abusively towards the worker), or you might know from the experiences of other workers that certain problems are not resolved.
If this was the case at your job, you should explain with as much detail as you can why you thought discussing the problem with your employer would have been futile – the more evidence you have for that belief, the better.
The reason you quit was for “good cause” and you did try to resolve the issue with your employer.
This is the strongest position you can be in: the reason you quit is one that typically would be viewed as good cause, and you have examples of ways that you tried to resolve the issue before deciding to quit.
If this is the case, you should write some notes for yourself about what the specific reason was you decided to quit, and what attempts you made to resolve that issue before quitting. This will help you stay organized during the hearing and give the judge clear answers to their questions.
