How Does Unemployment Work in Virginia: Eligibility, Filing & Appeals

Unemployment in Virginia works like this: if you lost your job through no fault of your own and earned enough wages during a recent lookback period, the Virginia Employment Commission (VEC) pays you a weekly benefit while you look for new work. For claims filed on or after January 4, 2026, those weekly payments run from $112 to $430 and last 12 to 26 weeks, depending on your earnings history.¹ Employers fund the program through payroll taxes, so nothing comes out of your paycheck.

Who Qualifies

Two separate tests have to be met: you need enough past earnings, and you need an acceptable reason for being out of work.

The earnings test looks at your base period — the first four of the last five completed calendar quarters before you file. If you don’t qualify under that window, Virginia checks an alternate base period made up of the four most recently completed quarters.² You must have wages in at least two quarters of that period, and the combined wages from your two highest quarters set your weekly benefit under a table in state law.³

The separation test turns on why your last job ended. Virginia law sorts separations into three groups.

Laid Off or Business Closed

A layoff for lack of work — including downsizing, business closure, or a seasonal shutdown — is the cleanest path. Nothing beyond the earnings test is required.

Fired

If you were discharged, the VEC looks at whether the firing was for misconduct connected with work. Under Virginia law, misconduct covers a confirmed positive drug test for a nonprescribed controlled substance, deliberate violation of company rules, or serious disregard of your employer’s interests.⁴ The employer has to prove misconduct. If the VEC finds it, you’re disqualified until you work for a new employer for at least 30 days or 240 hours and then separate.

Quit

Quitting creates a presumption against eligibility unless you can show good cause tied to the work itself, such as unsafe conditions, unpaid wages, or a significant change in employment terms that a reasonable person would find intolerable. Two reasons are specifically excluded from good cause: leaving to become self-employed, and leaving to move with a spouse, unless the spouse is active-duty military with a permanent change of station order to a qualifying state.⁴ The burden of proving good cause is yours. A voluntary-quit disqualification also lasts until you’ve worked 30 days or 240 hours for a new employer and then separated.

How Much You Get and for How Long

For 2026 claims, the weekly benefit floor is $112 and the ceiling is $430. To hit the maximum, your two highest quarters have to total at least $18,900.01.¹ Your total base-period wages then control how many weeks are available to you, anywhere from 12 to 26.

Once your claim is processed, the VEC mails a Statement of Wages and Potential Entitlement showing your weekly amount, the number of weeks you have, and your maximum benefit for the year. A zero-dollar balance on that statement means your wages fell short of the threshold.

How to File

You can file your initial claim through the VEC’s online portal or by phone. Have the following ready before you start:

Your Social Security number, for identity verification and to match your wage records.
Employment history for the past 18 months — names, addresses, phone numbers, and dates for every employer, including any out of state.⁵
A recent pay stub or W-2 so the earnings you report line up with what the state has on file.⁶
A clear reason for leaving each job. The VEC compares your account with the employer’s, so accuracy matters.
Routing and account numbers for direct deposit. Skip this and the state issues a debit card, which can push back your first payment.

Non-citizens who were authorized to work during the base period may also qualify, using their alien registration number and work authorization documents.

You cannot backdate your claim. Your benefit year starts the Sunday of the week you file. And if your claim goes inactive because you stop filing for 21 days or more, reactivating it creates a new effective date; the missed weeks are gone.⁷

The Waiting Week and First Decision

Virginia requires a one-week unpaid waiting period at the start of every benefit year. You still have to meet all the other requirements during that week — available for work, actively searching — you just won’t get paid for it. Only one waiting week applies per benefit year.² The waiting week is waived if your employer shut down or went bankrupt without paying your final wages.

After filing, you’ll receive a Monetary Determination letter laying out your weekly amount, maximum benefits, and weeks available. That letter confirms you cleared the money side; it does not guarantee payment. If your former employer disputes why you left, the VEC runs a fact-finding review, often by phone, before making a final call on eligibility.

Filing Each Week and Searching for Work

Every week you want to be paid, you have to complete a certification confirming you were able and available for full-time work. You report any earnings from part-time or temporary jobs, the employers you contacted, and any job offers you turned down.

Virginia law requires every totally unemployed claimant to report the employers contacted each week.² VEC policy sets the minimum at two job search contacts per week, and you must keep a log with the date, employer name, method of contact, and result.⁸ You also have to register with Virginia Career Works. Falling short on any of this, or no longer being available for full-time work, can suspend your payments.

Working Part-Time While on Benefits

If you pick up part-time work, Virginia disregards the first $100 of your gross weekly wages. Anything over $100 is subtracted dollar-for-dollar from your weekly benefit. So if your weekly benefit is $300 and you earn $200, the $100 above the disregard comes off your benefit, leaving a $200 payment that week. Earn as much as or more than your weekly benefit and you get nothing for that week.¹

Turning Down a Job Offer

You have to accept any offer of suitable work or risk disqualification. The VEC weighs your prior training and experience, physical fitness, risk to your health and safety, how long you’ve been out of work, and the commute.⁴ You are never required to accept a job that’s open because of a strike or lockout, or one that pays or treats workers substantially worse than the local standard for similar work.

Severance, Vacation, and Holiday Pay

Report any severance, vacation, or holiday pay to the VEC. Holiday and vacation pay are treated like wages and reduce your benefit in the week they apply to. Severance is more fact-specific: a VEC deputy reviews the details from you and your former employer and issues a determination on how the payment affects your weekly benefit.⁹ Report it promptly rather than guess at the outcome.

Taxes on Your Benefits

Unemployment benefits are federally taxable income. The VEC sends a Form 1099-G each January showing what you were paid the prior year.¹⁰ You have two ways to handle the bill: ask the VEC to withhold 10 percent of each payment for federal tax by submitting Form VEC-B38, or make quarterly estimated payments directly to the IRS.¹¹ Virginia also taxes unemployment compensation at the state level, so plan for that too.

If You’re Denied

If the VEC denies your claim or rules against you on a separation issue, you have 30 days from the mailing date of the decision to file a first-level appeal.¹² You can file in person at a Virginia Career Works office, by mail, fax, or electronically. Any written statement saying you want to appeal is enough; no formal legal filing is needed.¹³

An appeals examiner then holds a recorded phone hearing under oath. You’ll get at least 10 days’ notice of the hearing along with the laws and regulations in play, and you can bring a representative, though you aren’t required to. The examiner issues a written decision that affirms, amends, or reverses the original ruling. If you lose at that level, you can take a second-level appeal to the full Commission, and after that, seek review in Virginia circuit court. The 30-day deadline is strict — missing it may close your appeal rights unless you can show good cause.

Overpayments and Fraud

If the VEC pays you benefits you weren’t entitled to, whether from a reporting error, a reversed decision, or an employer’s late response, you have to pay it back. The VEC can offset future benefits or use other collection methods to recover the money.

Fraud is treated far more seriously. Making a false statement or failing to disclose a material fact to get benefits is a Class 1 misdemeanor in Virginia, carrying up to 12 months in jail and a fine of up to $2,500. Each false statement is a separate offense. On top of any criminal penalty, the VEC assesses a civil penalty of 15 percent of the fraudulent overpayment.¹⁴ When collecting on fraud, the VEC takes the principal first, then the 15 percent penalty, then anything else owed. Reporting every dollar of earnings each week, including small gig or temporary payments, is the simplest way to stay clear of an overpayment finding.

1
Virginia Employment Commission. Benefits Information
2
Virginia Code Commission. Virginia Code 60.2-612 – Benefit Eligibility Conditions
3
Virginia Code Commission. Virginia Code 60.2-602 – Weekly Benefit Amount
4
Virginia Code Commission. Virginia Code 60.2-618 – Disqualification for Benefits
5
Virginia Employment Commission. Apply for Unemployment Benefits
6
Virginia Department of Human Resource Management. How to Apply for Unemployment Benefits
7
Virginia Employment Commission. Frequently Asked Questions
8
Virginia Employment Commission. Workforce Requirements
9
Virginia Employment Commission. Benefits Eligibility
10
Internal Revenue Service. About Form 1099-G, Certain Government Payments
11
Internal Revenue Service. Topic No. 418, Unemployment Compensation
12
Virginia Employment Commission. Appeals
13
Virginia Code Commission. 16VAC5-80-20 – First Level Appeals
14
Virginia Code Commission. Virginia Code 60.2-636 – Penalty for Fraudulent Claim