What North Carolina Unemployment Covers and Who Can File

North Carolina's unemployment insurance program pays weekly benefits to workers who lost their job through no fault of their own. The program is run by the North Carolina Division of Employment Security (NCES), which is part of the state's Department of Commerce. You file your claim directly with NCES, not with your employer.

You can file if you were laid off, had your hours cut significantly, or were fired for reasons that were not misconduct on your part. You cannot file if you quit without good cause, were fired for willful misconduct, or are self-employed. If you were fired, the reason matters — being let go for poor performance or a single mistake usually does not disqualify you, but being fired for theft or violence does.

North Carolina also has a Pandemic Unemployment information (PUA) program that covers gig workers, self-employed people, and others who do not may have access to for regular unemployment. PUA is currently not active, but you should check the NCES website to see if it reopens, since federal rules can change.

Key Takeaways

  • File your claim with the North Carolina Division of Employment Security through their website or by phone within two weeks of losing your job, because benefits do not go back further than your filing date.
  • Have your Social Security number, driver's license or ID number, and information about your last job ready before you start, including your employer's name and address.
  • North Carolina pays between $15 and $350 per week, depending on your prior earnings, for up to 12 to 20 weeks depending on the state's unemployment rate.
  • Your employer will be notified of your claim and can contest it; if they do, NCES will contact you to explain your side.
  • You must report any work or income you earn while receiving benefits, because earning money reduces or stops your weekly payment.

How to File Your Claim Online or by Phone

The fastest way to file is through the NCES website at des.nc.gov. You will create an account, answer questions about your job loss, and submit your claim. The whole process takes about 20 to 30 minutes if you have your information ready. You can file any day of the week, any time of day.

If you cannot use the website, you can file by phone at 1-888-737-0259. Wait times are longest on Monday and Tuesday mornings. Have a pen and paper ready because the agent will ask you to confirm information as they enter it. Phone filing takes longer than online filing — usually 45 minutes to an hour — but the result is the same.

File as soon as you know you will not be returning to work. Benefits do not go back to the date you lost your job; they start from the date you file. If you wait two weeks to file, you lose two weeks of pay. There is no penalty for filing early, even if you are still working out a notice period.

What Information You Need Before You Start

Gather these documents before you file, whether online or by phone:

  • Your Social Security number
  • Your North Carolina driver's license or ID number
  • Your employer's full name, address, and phone number
  • Your job title and the date you were hired
  • The date your job ended or you were laid off
  • Your reason for leaving (laid off, hours cut, fired, etc.)
  • Your final pay stub or a record of your last few paychecks
  • Information about any other jobs you held in the past 18 months

If you were fired, write down the reason your employer gave you. If you quit, write down why. NCES will ask you to describe what happened in your own words, and having the facts straight before you start makes the process faster and reduces the chance of errors that could delay your claim.

How Much You Will Receive and How Long It Lasts

North Carolina calculates your weekly benefit amount based on your earnings in the past year. The state divides your total wages from the highest-earning quarter by 26 to get a weekly amount, then pays you 50% of that figure. The minimum is $15 per week and the maximum is $350 per week as of 2024, though the maximum can change each year.

Your benefits last between 12 and 20 weeks, depending on North Carolina's unemployment rate. When the state's unemployment rate is low (below 5%), you get 12 weeks. When it is higher, you get up to 20 weeks. NCES will tell you your exact benefit amount and duration when your claim is approved.

You do not have to pay taxes on unemployment benefits in North Carolina, but the federal government may tax them. When you file, you can choose to have federal taxes withheld from your weekly payment, or you can pay them when you file your tax return.

What Happens After You File

NCES will review your claim within 7 to 10 business days. During this time, they contact your employer to ask whether they agree that you were laid off or fired without misconduct. Your employer can contest your claim, saying you quit or were fired for cause.

If your employer does not contest the claim, you will be approved and your first payment will arrive within 7 to 14 days after approval. Payments are made by debit card to an account NCES sets up for you, or you can choose direct deposit to your bank account.

If your employer contests your claim, NCES will send you a letter explaining their reason and asking you to respond. You will have a chance to tell your side of the story, either in writing or over the phone. If NCES sides with you, you are approved. If they side with your employer, your claim is denied, but you can appeal.

Reporting Work and Income While Receiving Benefits

You can work part-time or do gig work while receiving unemployment, but you must report all income to NCES. Each week, when you file your weekly claim, you will be asked whether you worked and how much you earned.

North Carolina allows you to earn up to $50 per week without losing any benefits. Anything you earn above $50 reduces your weekly payment dollar-for-dollar. For example, if your weekly benefit is $200 and you earn $100, you report $100, subtract $50, and your payment is reduced by $50 to $150.

You must file a weekly claim every week you want to receive benefits, even if you worked that week. If you do not file your weekly claim, you do not receive a payment that week. You can file your weekly claim online at des.nc.gov or by phone.

If Your Claim Is Denied or Contested

If NCES denies your claim, they will send you a letter explaining why. Common reasons include being fired for misconduct, quitting without good cause, or not meeting the earnings requirement. You have 30 days from the date of the letter to file an appeal.

To appeal, contact the North Carolina Division of Employment Security Appeals Section by phone at 1-888-737-0259 or by mail. You can also file an appeal online at des.nc.gov. When you appeal, explain why you disagree with the decision. If your employer said you were fired for misconduct, explain what actually happened. If you quit, explain why you had good cause to leave.

An appeals officer will review your case and may hold a hearing where you and your employer can present your sides. The hearing is usually by phone. You can bring witnesses or documents to support your case. The appeals process takes 2 to 4 weeks.

Frequently Asked Questions

How long does it take to get my first payment?

If your claim is approved with no contest from your employer, your first payment arrives 7 to 14 days after approval. The approval itself takes 7 to 10 business days. So you are usually looking at 2 to 3 weeks from the date you file. If your employer contests your claim, it takes longer — sometimes 4 to 6 weeks.

Can I file if I was laid off due to COVID-19?

Yes. A layoff due to COVID-19 is a layoff through no fault of your own, so you can file regular unemployment. If you are self-employed or a gig worker and lost income due to COVID, check whether Pandemic Unemployment information has reopened, since it is not currently active.

What if I was fired but I think it was unfair?

Whether a firing was unfair and whether it disqualifies you from unemployment are two different things. Unemployment cares whether you were fired for willful misconduct — theft, violence, repeated rule-breaking after warnings. Being fired for poor performance or a single mistake usually does not disqualify you. File your claim and explain what happened. If denied, you can appeal.

Do I have to look for a job while receiving unemployment?

North Carolina does not require you to prove you are looking for work to receive benefits, but you must be able and available to work. If you are in school full-time, caring for a child with no childcare, or unable to work for another reason, you may not be able to receive benefits. Tell NCES about any barriers to work when you file.

What if I move out of North Carolina while receiving benefits?

You can continue to receive North Carolina benefits if you move, but you must tell NCES. Some states have agreements to process claims for workers who move. Contact NCES to find out whether your new state can help process your claim, or continue filing with North Carolina by phone or online.