What is unemployment compensation?
Workers who have been discharged without cause are entitled to unemployment compensation which is money paid by the government or a private insurance fund to workers who have lost their jobs through no fault of their own. Unemployment compensation payments are made by the states in cooperation with the federal government under the Social Security Act of 1935. There is usually a period of one or two weeks after termination before payments begin. Then a percentage of the regular wage is paid to the unemployed person every week for a limited period of time. Unemployment compensation is not available to those who quit voluntarily, strike, or refuse to accept similar substitute work.