Why your unemployment check is late and how to resolve it

Experiencing delays in receiving your unemployment benefits can be incredibly frustrating, especially when you rely on these funds to cover essential expenses. Several factors can contribute to these delays, ranging from simple mistakes on your claim to systemic issues within state unemployment departments. Understanding these reasons and knowing what steps to take can help you navigate this challenging situation.

Common Reasons for Delayed Unemployment Payments

1. Mistakes on Your Claim

One of the most common reasons for delayed unemployment benefits is errors on your application. Even a minor mistake, such as failing to check a box, can cause your claim to be flagged for manual review. For example, during the COVID-19 pandemic, many Californians faced delays because they answered a confusingly worded question incorrectly, causing their applications to be stuck on "pending" for weeks.

2. Incorrect Direct Deposit Information

Signing up for direct deposit is generally faster and more secure, but it’s also easy to make mistakes when entering your bank details. Incorrect routing or account numbers can result in significant delays. Always double-check your information and consider asking someone you trust to verify it with you.

3. Verification Delays

Even if your direct deposit information is correct, your state’s unemployment department may still need time to verify your bank account. This process can take several days to weeks, depending on the state. For instance, in Massachusetts, this verification process takes nine business days, during which your benefits are on hold.

4. Overwhelmed State Systems

State unemployment systems have been overwhelmed by the surge in claims, especially during the pandemic. Outdated computer systems and a high volume of applications have made it difficult for states to process claims promptly. "When the pandemic and economic downturn hit, none of the state labor departments would have anticipated the more than 1000 percent increase in requests for unemployment insurance that they experienced," says Mark Hamrick, Bankrate’s senior economic analyst.

5. Fraud Investigations

Widespread unemployment fraud has further slowed operations in many states. Fraudsters have taken advantage of the system, filing for benefits they are not entitled to, which has led states to dedicate resources to investigating these claims. This additional scrutiny can delay legitimate claims.

6. Switching Payment Providers

Changes in payment providers can also cause delays. For example, Maryland’s Division of Unemployment Insurance recently switched from Bank of America to Wells Fargo, causing delays for those who did not update their payment method promptly.

7. Lost or Stolen Checks

Mail delivery issues can also be a factor. Misdelivered or stolen checks can cause significant delays. Consider using services like USPS Informed Delivery to track your mail and ensure you receive your payments.

What to Do About It

1. Contact Your State Unemployment Office

Reaching out to your state unemployment office can help identify any issues with your claim. Speaking with a representative may expedite the process, although getting through can be challenging due to high call volumes. "For those who are still struggling to receive payments, they should do their best to get in touch with a real person in the agency responsible to understand the source of the bottleneck," advises Hamrick.

2. Submit Updated Documentation

If your application is flagged for missing or incorrect information, submitting updated documentation can help resolve the issue. Ensure that all your identification and employment details are accurate and up-to-date.

3. Update Your Payment Profile

Make sure your direct deposit information is correct. If you’ve changed banks or account numbers, update your payment profile accordingly. This can prevent delays caused by incorrect bank details.

4. Work with Creditors

While waiting for your benefits, communicate with your creditors, landlords, or mortgage servicers. Many may offer relief options or payment plans to help you manage your finances during this period.

Delays in unemployment payments are often due to a combination of individual errors and systemic issues within state unemployment departments. By understanding the common reasons for these delays and taking proactive steps, you can mitigate the impact and ensure you receive your benefits as soon as possible.