Just because one employee was not able to collect does not mean that there are no unemployment benefits. There is much more to it than that. Did the person quit or were they terminated. If they were terminated was it due to lack of work or was it for cause? Those are the things that affect eligibility.
No..it is a rule that has to do with how church employees are seen legally..we do not get unemployment no matter what..that is my understanding.
The following is an answer posted on a board about this very issue of churches and unemployment:
<<most employees of churches and other religious organizations are not eligible to collect unemployment benefits because their employers generally do not contribute to unemployment benefit programs for them. However, some do, as explained below. (In reading my note, below, by “church” I mean any religious organization.)
a. Because our U.S. Constitution prohibits federal government intrusion into religion, our federal government does not tax churches or other religious organizations. For this reason, by federal law, “service performed in the employ of a church . . . or an organization which is operated primarily for religious purposes” is exempt from federal unemployment taxes.
b. Though, by law, our State governments are permitted to require churches to pay unemployment taxes, few do so. In this area, states are permitted to impose this tax on churches, and provide this benefit to church employees. Few do.
c. Even still, churches can voluntarily contribute but, again, very few do so. A church is free to adopt its own policy of being included in unemployment insurance coverage. Few do so. Unless a church voluntarily establishes its own policy to pay unemployment taxes, its former employees cannot receive unemployment benefits.>>