Can an Active Employee Collect Underemployment Benefits?

hands-460872_1280In most states, in order to collect unemployment benefits a worker must be either unemployed or underemployed. An unemployed worker has no earnings in a week; an underemployed worker is one who has some earnings in a week but is still entitled to some unemployment benefits for that week either due to a reduction in hours worked or a reduction in pay rate.

However, a person who is working full time in a week is not unemployed or underemployed and therefore cannot receive unemployment benefits for that week unless their regular wages have been reduced.

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