Voluntarily Leaving One Job for a Better Paying Job that Doesn't Work Out Does Not Disqualify You from Seeking Unemployment Benefits

Under unemployment laws, a general rule is if you voluntarily quit your job, you can’t receive unemployment benefits. But what happens if you quit your job for a better paying job which then either never comes to fruition or from which you are terminated or laid off due to no fault of your own?

In Lakey v. Cracker Barrel and Florida Unemployment Appeals Commission, the First District Court of Appeal held that such a move does not automatically disqualify the individual from seeking unemployment compensation benefits from the prior employer--but the appellate court did not hold that it would entitle the individual to benefits.   

The facts of the case are as follows:  Ms. Lakey worked for Cracker Barrel for about a month during the end of 2008.  She then left to go work for a better paying job at the Peabody Hotel.  Sometime thereafter, she was laid off from the Peabody.  Lakey then applied for unemployment from Cracker Barrel.  AWI denied the petition on the basis that she voluntarily quit her job at Cracker Barrel.   The appeals referee and the Florida Unemployment Appeals Commission affirmed that denial.  Lakey appealed the UAC's affirmance to the First District Court of Appeal . The First DCA reversed the decision stating that “nothing in the statute provides that leaving one job in order to take a better paying job disqualifies an employee later terminated without good cause from receiving unemployment compensation benefits.”  The appellate court reversed the determination and remanded "for further proceedings."  It did not mandate granting such benefits.

The First DCA seems to implicitly recognize that an individual should not be penalized for trying to improve their employment situation when things at the new job don't work out.  The decision, however, is fairly narrow in that it provides that such a move does not disqualify the employee from receiving unemployment benefits.  The disqualification for voluntarily leaving work is a threshold criterion in the determination of entitlement to unemployment benefits.  The employee must still meet all other requirements.

Notwithstanding, the decision seems to be in line with a growing sympathy toward the unemployed during this difficult economy.  Employees need all the help they can get, and we'll take it.

If you have been denied unemployment compensation benefits and would like some free legal advice on your situation, please do not hesitate to call me to discuss your appeal options because you only have 20 days from the date of the denial to file your appeal.  Visit www.deanjohnsonlaw.com for contact information.