Unemployment

Unemployment Benefits

Unemployment benefits are provided by each state through employer tax funding of the nation's Unemployment Insurance System.

Employees, including those working for the government, are generally entitled to file insurance claims for state unemployment benefits when they suffer a reduction in work hours or lose their jobs, such as through financial cutbacks, plant closings or mass layoffs.

In addition to unemployment benefits eligibility, employees might be eligible to purchase a temporary extension of health insurance benefits at group rates for themselves and their dependants, under the Consolidated Omnibus Budget Reconciliation Act (COBRA).

Service members recently discharged honorably from active military duty are also generally entitled to file insurance claims for state unemployment benefits.

Unemployment benefits vary by state, but generally include weekly subsistence compensation, job-training opportunities, and job-searching and other re-employment assistance for those who qualify. Eligibility requirements also vary by state. But, generally, unemployed workers must meet the following requirements to qualify.

• Job loss typically can't be the fault of unemployed workers. For example, employees who were fired for misconduct or those who voluntarily resigned might not be eligible for unemployment benefits, while those who were laid off typically are; employees who resigned in lieu of discharge might not be eligible either. Regardless, fired or resigned employees have little to lose by filing claims for unemployment benefits, because state unemployment offices consider each case individually. It's not unusual for such employees to win benefits on appeal, if serious misconduct was not involved.
  
  
• Must have been gainfully employed for a required period of time, called the "base period". Most states consider the base period to be four calendar quarters out of the past five, prior to filing claims for unemployment benefits.
  
  
• Must have earned no less than a minimum amount during the base period. It varies by state, but is typically only a small amount. For example, at this writing, Californians need only to have earned a total of $1,125 in their base periods, while having earned at least $900 of the total in the highest-paid quarter. Other states require more or less. How it's calculated also varies.
  
  
• Must be ready, willing and able to work. For example, unemployed workers who become disabled while collecting unemployment benefits, might lose their eligibility for same. However, some might become eligible for state disability insurance programs. Such programs are usually administered by state unemployment offices, the same government agencies that administer unemployment benefits. But, only a few states have disability insurance programs.

Total wages earned during a worker's base period determine the amount and number of weekly unemployment compensation payments. The maximum number of weekly payments is typically 26 within an unemployed worker's "benefit year". A benefit year is 52 weeks, and its start and end dates are based on the date that a worker filed an initial claim for unemployment benefits.

In other words, an unemployed worker typically has a year to collect the maximum 26 weeks of unemployment benefits. Subsequently, unemployed workers typically may turn their benefits "off and on" within their benefit years, such as when working short-term temporary jobs between collecting benefits.

Unemployment compensation minimum and maximum weekly payments vary by state. But, relatively speaking, even the maximum amount isn't much in any state. For example, at this writing, the maximum unemployment compensation for New Yorkers is $405 per week for 26 weeks ($10,530). New York is typically among the highest-paying states. Unemployed workers in many other states receive considerably less.

A few states, such as Arkansas, Connecticut, Illinois, Iowa, Maine and Massachusetts, pay cash allowances for qualified dependants in addition to base unemployment compensation. The definition of qualified dependants varies by state.

Under extended benefits programs, states may increase the number of weekly unemployment compensation payments to eligible individuals. Disaster Unemployment Assistance (DUA) provides unemployment benefits to eligible individuals who've become unemployed or lost income as a direct result of major disasters. Unlike standard or extended benefits, self-employed individuals might be eligible for DUA.

Contact the nearest state unemployment office or browse its Web site to learn how to file an unemployment benefits claim. Don't be embarrassed to claim your stake of unemployment benefits. It's common practice and among your employee rights.

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