- When a person applies for benefits, the state agency will, instead of providing him with benefits right away, attempt to verify the particulars of his application. This includes checking with his former employer as to why the former employer fired him. If the state agency can discover a valid reason that a person was fired, either from the employer or from another source, then the applicant will be denied benefits.
- Employers will be allowed to present their case to a state agency as to why a person that they fired is not eligible to receive benefits. The employer may, for example, say that the person was not fired due to structural changes in the company, but for gross misconduct. In most states, being fired for gross misconduct will prevent a person from receiving benefits.
- In general, a state agency tasked with disseminating unemployment benefits and determining the eligibility of applicants will not consult outside parties beyond the employer when attempting to determine a person's eligibility, so long as irregularities are not detected. However, this does not mean that an outside party cannot approach the state agency and present it with evidence that would make the person ineligible for benefits.
- There is no legal way to stop a person from claiming unemployment benefits if he is legally entitled to them. However, an employer theoretically could provide a person with a severance package that would prevent him from being eligible for benefits. If the package was paid out over a period of weeks or months, the person would not be able to claim benefits from the state until the severance package ends, because his income would be too high.