Unemployment Insurance: Programs and Benefits

[Excerpt] A variety of benefits may be available to unemployed workers to provide them with income support during a spell of unemployment. The cornerstone of this income support is the joint federal-state Unemployment Compensation (UC) program, which may provide income support through the payment of UC benefits for up to a maximum of 26 weeks. Other programs that may provide workers with income support are more specialized. They may target special groups of workers, be automatically triggered by certain economic conditions, be temporarily created by Congress with a set expiration date, or target typically ineligible workers through a disaster declaration. UC benefits may be extended at the state level by the permanent Extended Benefit (EB) program if high unemployment exists within the state. Once regular unemployment benefits are exhausted, the EB program may provide up to an additional 13 or 20 weeks of benefits, depending on worker eligibility, state law, and economic conditions in the state. The EB program is funded 50% by the federal government and 50% by the states, although the 2009 stimulus package (P.L. 111-5, as amended) temporarily provides for 100% federal funding of the EB program. A temporary unemployment insurance program, the Emergency Unemployment Compensation (EUC08) program, began in July 2008. The authorization for the EUC08 program expires the week ending on or before January 1, 2014. Therefore, the last day of EUC08 availability is December 28, 2013 (December 29, 2013, for New York). This was the eighth temporary program Congress has created to provide extended unemployment compensation during an economic slowdown. The EUC08 benefit is 100% federally funded. State UC agencies administer the EUC08 benefit along with regular UC benefits. See Appendix A for diagrams of the current unemployment benefits available to workers as well as a detailed diagram of the expansions and contractions of the EUC08 benefit. This report describes three kinds of unemployment benefits: regular UC, EB, and EUC08. The report explains their basic eligibility requirements, benefits, and financing structure

Unemployment Insurance: Legislative Issues in the 116th Congress

The unemployment insurance (UI) system has two primary objectives: (1) to provide temporary, partial wage replacement for involuntarily unemployed workers and (2) to stabilize the economy during recessions. In support of these goals, several UI programs provide benefits for eligible unemployed worker

The Fundamentals of Unemployment Compensation

[Excerpt] The joint federal-state Unemployment Compensation (UC) program provides income support through UC benefit payments. Although there are broad requirements under federal law regarding UC benefits and financing, the specifics are set out under each state’s laws. States administer UC benefits with U.S. Department of Labor (DOL) oversight, resulting in 53 different UC programs operated in the states, the District of Columbia, Puerto Rico, and the Virgin Islands. Total UC expenditures include benefits and administrative costs. During economic expansions, states fund approximately 85%-90% of all UC expenditures—as almost all of the benefits are state-financed by state unemployment taxes. In comparison, federal expenditures are relatively small during these expansions (approximately 10%-15%) in which federal expenditures are primarily administrative grants to the states financed by federal unemployment taxes

Unemployment Insurance: Legislative Issues in the 115th Congress

[Excerpt] The 115th Congress continues to consider many issues related to the two major components of the unemployment insurance (UI) system: Unemployment Compensation (UC) and Extended Benefits (EB). This report provides short summaries of legislative proposals with respect to UI programs. It also gives a brief overview of the UI programs that may provide benefits to eligible unemployed workers. In addition, it briefly summarizes UI proposals included in the President’s budget for FY2018

Temporary Extension of Unemployment Benefits: Emergency Unemployment Compensation (EUC08)

[Excerpt] In July 2008, a new temporary unemployment benefit, the Emergency Unemployment Compensation (EUC08) program, began. The program\u27s authorization ended on November 27, 2010. EUC08 was created by P.L. 110-252, and it has been amended by P.L. 110-449, P.L. 111-5, P.L. 111-92, P.L. 111-118, P.L. 111-144, P.L. 111-157, and P.L. 111-205. Most recently, P.L. 111-205 extended the authorization of the EUC08 program, but did not change the structure of the program or augment benefits. This temporary unemployment insurance program provides up to 20 additional weeks of unemployment benefits to certain workers who have exhausted their rights to regular unemployment compensation (UC) benefits. A second tier of benefits provides up to an additional 14 weeks of benefits (for a total of up to 34 weeks of EUC08 benefits for all unemployed workers). A third tier is available in states with a total unemployment rate of at least 6% and provides up to an additional 13 weeks of EUC08 benefits (for a total of up to 47 weeks of EUC08 benefits in certain states). A fourth tier is available in states with a total unemployment rate of at least 8.5% and provides up to an additional six weeks of EUC08 benefits (for a total of up to 53 weeks of EUC08 benefits in certain states). All tiers of EUC08 benefits are temporary and expired on the week ending on or before November 30, 2010. Those beneficiaries receiving tier I, II, III, or IV of EUC08 benefits before November 27, 2010 (November 28, 2010, in New York) are grandfathered for their remaining weeks of eligibility for that particular tier only. There will be no new entrants into any tier of the EUC08 program after November 27, 2010. If an individual is eligible to continue to receive his or her remaining EUC08 benefit tier after November 27, 2010, that individual would not be entitled to tier II benefits once those tier I benefits were exhausted. No EUC08 benefits—regardless of tier—are payable for any week after April 30, 2011. P.L. 111-92 expanded benefits available in the EUC08 program, creating two new tiers of benefits (bringing total benefit tiers to four) and adding 20 weeks of EUC08 benefits (for a total of up to 53 benefit weeks). P.L. 111-118 extended the EUC08 program, the 100% federal financing of the Extended Benefit (EB) program, and the $25 Federal Additional Compensation (FAC) weekly benefit through February 28, 2010. P.L. 111-144 and P.L. 111-157 extended these same three measures until April 5, 2010, and June 2, 2010, respectively. On July 22, 2010, the President signed P.L. 111-205, the Unemployment Compensation Extension Act of 2010, into law. P.L. 111-205 extended the availability of EUC08 and 100$25 FAC benefit, which expired on May 29, 2010 (May 30, 2010, for New York). The latest version of H.R. 4853—as well as S. 3981 and S. 3990—would extend the authorization for the EUC08 program and the 100% federal financing of EB until the beginning of January 2012. H.R. 6419 would extend these same provisions through February 2011. This report will be updated to reflect current congressional action or programmatic changes. Individuals should contact their state\u27s unemployment agency to obtain information on how to apply for and receive EUC08 benefits. The U.S. Department of Labor maintains a website with links to each state\u27s agency at http://www.workforcesecurity.doleta.gov/map.asp

Emergency Unemployment Compensation (EUC08): Current Status of Benefits

The temporary Emergency Unemployment Compensation (EUC08) program may provide additional federal unemployment insurance benefits to eligible individuals who have exhausted all available benefits from their state Unemployment Compensation (UC) programs. Currently, EUC08 benefits are available in all states except for North Carolina. Congress created the EUC08 program in 2008 and has amended the original, authorizing law (P.L. 110-252) 11 times. The most recent extension of EUC08 in P.L. 112-240, the American Taxpayer Relief Act of 2012, authorizes EUC08 benefits through the end of calendar year 2013. Under P.L. 112-240, the potential duration of EUC08 benefits available to eligible individuals depends on state unemployment rates. Figure A-1 provides the sequence, availability, and total maximum of all unemployment benefits. This report summarizes the structure of EUC08 benefits currently available through December 28, 2013 (December 29, 2013, for New York). It also provides the legislative history of the EUC08 program