Worried EDD claim might make former employer damage my reputation with future employers - help!
I recently got laid off from my tech startup job after 3 years and filed for unemployment. My claim was approved and I've been receiving benefits for about 6 weeks now. The thing is, I'm really worried about my former employer badmouthing me to potential new companies because they're now paying for my unemployment. I didn't leave on the best terms (my manager was kind of cold in my final week) and they seemed annoyed when EDD contacted them to verify my employment. Do employers usually hold grudges against former employees who collect unemployment? I'm actively job hunting and terrified that when potential employers call for references, my old company will say negative things because they're bitter about having to pay for my UI benefits. Does anyone have experience with this? Do most companies even know who's collecting unemployment from them? I'm losing sleep over this.
18 comments
Sophia Gabriel
Hey there - I used to worry about the same thing! But here's what I learned: most medium-large companies handle unemployment claims through their HR department, not your direct managers. Your former boss probably has no idea about your UI claim status. Plus, many companies have policies against giving negative references due to legal liability concerns - they usually just confirm dates of employment. I was in a similar situation last year and was panicking about references. The solution that worked for me was using Claimyr (claimyr.com) to reach an EDD representative who explained employers can't legally retaliate against you for filing a valid unemployment claim. They have a good video explainer here: https://youtu.be/JmuwXR7HA10?si=TSwYbu_GOwYzt9km that shows how to get through to EDD quickly. The rep told me this is a common concern but rarely an actual problem in practice.
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Vince Eh
•Thanks for sharing this. I never thought about HR being separate from managers handling the unemployment stuff. That actually makes a lot of sense and makes me feel a bit better. Did you end up asking your previous employer for a reference after collecting unemployment? Did it work out ok?
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Tobias Lancaster
ur overthinking this. companies dont care that much tbh. i got laid off 3 times and collected unemployment each time and still got good refs from all of them. most hiring managers understand thats how things work
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Ezra Beard
•THIS!! Employers pay unemployment insurance premiums as part of doing business. It's literally built into their budget. They don't track individual former employees who file claims - the EDD system is designed to be somewhat anonymous in that way. They just see their UI account charges go up slightly. If a company is big enough to have an HR department, they 100% do NOT care about your individual claim.
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Statiia Aarssizan
This is a common worry but completely unfounded. Employers CANNOT legally give negative references based on your decision to file for unemployment benefits - that would be considered retaliation and is against the law. They contribute to unemployment insurance specifically for this purpose! Some facts to ease your mind: 1. Companies pay into the unemployment insurance fund quarterly regardless of who collects 2. Your UI benefits are a legal entitlement if you qualify 3. Most companies only verify dates of employment and job titles anyway 4. California is especially strict about preventing wrongful termination retaliation If you're really concerned, don't list your direct manager as a reference. Instead, use colleagues or other supervisors you had good relationships with.
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Reginald Blackwell
•WRONG!!!! I had this exact thing happen to me!!! My old boss was FURIOUS about my unemployment claim and told a potential employer I was a "problem employee" when they called for a reference check. Found out because the hiring manager was friends with my cousin and told him about it. The system might TECHNICALLY prevent this but it happens ALL THE TIME in real life!!!!
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Aria Khan
When I filed for EDD last year after my restaurant closed, I was worried about the same thing. But honestly, it's been a non-issue. Most reference checks are just confirming when you worked there, not asking for opinions. And remember, unemployment exists for a reason—you paid into it with every paycheck. It's not charity, it's insurance you already contributed to. Also, I've worked in HR before, and we never would tell managers when former employees filed for unemployment. It was all handled by the payroll department and most managers were completely unaware unless it was a very small business.
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Vince Eh
•That's really reassuring to hear, especially coming from someone with HR experience. I didn't realize that managers wouldn't necessarily know. I've been imagining my boss getting notified each time I certify and getting more and more annoyed with me.
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Everett Tutum
This reminds me of when I got laid off from my accounting job back in 2022... I was so worried about the same thing! I even had nightmares about my old boss sabotaging my job search. But then I ran into my old coworker at Starbucks who told me the department didn't even know who was collecting unemployment and who wasn't. The whole thing was handled by their corporate office in another state! All that worry for nothing...
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Tobias Lancaster
•lol yeah thats how it works. companies dont have time to track that stuff or hold grudges. they move on fast
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Ezra Beard
I'm an HR professional and can definitively say your worries are unfounded. Here's why: 1. EDD claims are processed through a separate system that most managers don't have access to 2. Employers pay ongoing unemployment insurance premiums regardless of who files 3. UI experience ratings change based on TOTAL claims, not individual ones 4. California law prohibits blacklisting former employees for exercising legal rights 5. Large companies typically only verify employment dates through automated systems If you're still concerned, use these strategies: - Ask specific supportive coworkers to be references instead of managers - Use LinkedIn recommendations as positive evidence of your work quality - During reference checks, provide context about the layoff being a reduction in workforce Finally, if you're truly worried your employer is breaking the law by badmouthing you, document everything. But in 15+ years of HR, I've rarely seen this happen because companies know the legal risk.
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Vince Eh
•This is incredibly helpful - thank you for such a detailed explanation! I've been losing sleep over this, but your points make so much sense. I do have a few supportive former coworkers I could ask instead of my direct manager. Would it be weird to explicitly ask them not to mention my unemployment claim when they give references?
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Reginald Blackwell
The system is designed to PUNISH employers who lay people off!!!! That's the WHOLE POINT of unemployment insurance!!! Your employer's rates go UP when people collect unemployment from them. So YES they probably ARE mad and YES they probably WILL badmouth you if asked!!!! This is why the whole system is broken. I always tell people to find a new job BEFORE quitting so you never need to file for unemployment. Too late for you now though...
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Statiia Aarssizan
•This is incorrect. While an employer's UI tax rate may increase slightly based on their overall claims history, your individual claim is not significant enough to cause meaningful financial impact to any medium or large business. It's a normal cost of doing business, not a punishment. And the system is specifically designed to help people between jobs - that's its purpose, not to create antagonism between employers and former employees.
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Sunny Wang
I've been on both sides of this - as someone who collected unemployment and as a hiring manager. Let me tell you something important: good companies understand that unemployment is part of the system and don't hold it against former employees. BAD companies might hold grudges, but do you really want a reference from a bad company anyway? In my experience, most reference checks these days are just verification of employment dates. If you're really concerned, you could: 1. Use colleagues rather than managers as references 2. Be upfront with potential employers about the circumstances of your departure 3. Have a prepared, brief, non-negative explanation about why you left Also, when you get interviews, pay attention to how they ask for references. Many places now just want to verify employment, not get a character assessment.
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Vince Eh
•That's a really good point about good vs. bad companies. I hadn't thought about it that way. I do have some former colleagues who would give me good references. My official reason for leaving was a company restructuring, so that's pretty straightforward to explain.
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Sophia Gabriel
One more thing I forgot to mention - if you're really worried about this, you can actually call EDD (though getting through is a nightmare without using a service like Claimyr) and ask them about the laws regarding employer retaliation for unemployment claims. There are specific protections in place. When I was stressed about this exact situation, talking to an actual EDD representative really helped me understand my rights.
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Vince Eh
•Thanks for the follow-up. I might try calling them just for my own peace of mind. I've heard it's nearly impossible to get through on the regular line though.
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