Unemployment Insurance Benefits: Insured or Uninsured Work

Unemployment insurance (UI) provides financial assistance to individuals who are unemployed through no fault of their own. Understanding the difference between insured and uninsured work is crucial for determining eligibility for UI benefits.

Insured Work

If you qualify for unemployment insurance, you will receive benefits based on insured work. Insured work refers to work performed for an employer who is subject to the law and is required to make payments to the state under the Illinois Unemployment Insurance Act.

What Is Insured Work?

Insured work includes jobs with employers who are required by law to contribute to the state unemployment insurance fund. These contributions finance the unemployment benefits that workers receive when they become unemployed. The biweekly payments to you, known as benefits, are provided based on the wages earned from insured work.

Eligibility for Benefits

To qualify for unemployment benefits, you must meet specific eligibility requirements:

  1. You must have performed insured work.

  2. You must meet the wage requirements during your base period.

  3. You must be unemployed through no fault of your own.

  4. You must be actively seeking work and be available to work.

If you meet these criteria, benefits will be paid to you as a matter of right. These benefits are not based on need; they are neither charity nor welfare.

Uninsured Work

Not all types of work are insured in Illinois. Wages paid for uninsured work cannot be used as a basis for claiming unemployment benefits. Below are some examples of uninsured work:

  1. Agricultural Workers: Only those who worked for an employing unit that paid at least $20,000 in cash wages during any calendar quarter or employed 10 or more individuals within 20 or more calendar weeks in the current or preceding year are covered.

  2. Domestic Workers: Those who worked for an employing unit that paid at least $1,000 in cash wages for any domestic services in any calendar quarter in either the current or preceding year are covered. Other domestic workers are not covered.

  3. Railroad Workers: Work covered by the Railroad Unemployment Insurance Act is not insured under the Illinois UI program.

  4. Family Employment: Work performed for a spouse, a parent working for a son or daughter, or a son or daughter under 18 working for a parent is not covered.

  5. Insurance Agents or Solicitors: Work paid solely on a commission basis is not covered.

  6. Government Work: Certain government work in special job situations (elected officials) or those hired to work for a short period following a disaster may not be covered.

  7. Work-Relief and Work-Training Programs: Federally, state, or locally funded work-relief and/or work-training are not covered.

  8. Direct Sellers: Direct sellers of consumer products on a buy-sell basis, by direct commission, or any similar basis in a home or in an establishment other than a permanent retail establishment are not covered.

Other Considerations

There are other types of work that are not insured under the Illinois UI program but may be insured under another state's program or the federal government. If you have any questions about whether your work is insured, you can contact IDES Claimant Services for assistance.

Conclusion

Understanding the distinction between insured and uninsured work is essential for determining your eligibility for unemployment insurance benefits. Insured work provides the basis for claiming benefits, whereas wages from uninsured work cannot be used for this purpose. If you are unsure about the status of your employment, reach out to IDES Claimant Services for clarification and guidance.


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