San Francisco, CA employment attorney Traci M. Hinden talks about what happens to your unemployment benefits if you quit. She addresses a common concern among employees in California about losing their right to unemployment benefits if they quit their jobs. She explains that it is not necessarily true that an employee who resigns is automatically disqualified from receiving unemployment, particularly when the employee has no reasonable alternative but to leave because the workplace has become intolerable or unlawful. She gives examples of clients whose supervisors engaged in serious misconduct, including unwanted sexual touching, demands for kisses or hugs, and inappropriate comments, emphasizing that employees should not be expected to remain in an illegal and intolerable work environment.

She recommends that employees first make a complaint about the unlawful conduct, either before resigning or, at a minimum, when they are leaving, and clearly document that the conduct is the reason they are resigning. She explains that documenting the reason for leaving can help protect the employee’s ability to pursue a future legal claim. She notes that although employees often think of wrongful termination as being fired by an employer, an employee who is forced to resign because there is no reasonable alternative due to unlawful working conditions may have what is known as a constructive wrongful termination claim.

She further explains that documenting the circumstances surrounding the resignation can also be important when seeking unemployment benefits. If an employee can establish that they had no reasonable alternative but to leave and can explain the unlawful or intolerable conditions they experienced, they may be entitled to unemployment benefits and may also be able to pursue a legal claim against the employer if appropriate.