Unemployment extension

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Unemployment extension occurs when regular unemployment benefits are exhausted and extended for additional weeks. Unemployment extensions are created by passing new legislation at the federal level, often referred to as an "unemployment extension bill." This new legislation is introduced and passed during times of high or above average unemployment rates. Unemployment extensions are set during a date range in order to estimate their federal cost. After expiration, the unemployment data is re-evaluated, and new legislation may be proposed and passed to further extend them.

Unemployment Extensions in The United States[edit]

In the United States, there is a standard of 26 weeks of unemployment benefits, known as "regular unemployment insurance (UI) benefits." There are two programs for extending unemployment insurance (UI) benefits.[1]

• Emergency Unemployment Compensation (EUC)
• Extended Benefits (EB)

Emergency Unemployment Compensation (EUC)[edit]

EUC has four levels: Tiers 1, 2, 3 and 4.[2]

EUC08, or Emergency Unemployment Compensation 2008, is an extension of unemployment benefits authorized under Federal law. The Middle Class Tax Relief and Job Creation Act of 2012 (enacted on Feb 22, 2012) modified EUC08.[3][4]

Claimants who filed an initial claim effective on or after May 7, 2006 are potentially eligible for EUC08. Individuals who are monetarily ineligible when a new benefit year is filed may qualify for EUC08 on the basis of a previous claim.




Extended Benefits (EB)[edit]

Extended Benefits are available to workers who have exhausted regular unemployment insurance benefits during periods of high unemployment. The basic Extended Benefits program provides up to 13 additional weeks of benefits when a State is experiencing high unemployment. Some States have also enacted a voluntary program to pay up to 7 additional weeks (20 weeks maximum) of Extended Benefits during periods of extremely high unemployment.[5]

Reachback[edit]

In addition to individuals who exhausted all rights to benefits after the original date of enactment, the EUC law includes what is commonly referred to as a reachback provision. A reachback provision makes eligible those individuals who exhausted all rights to benefits prior to the original date of enactment (back to a specified date). The EUC law makes eligible all individuals whose benefit year ending date is on or after May 1, 2007. Practically speaking, this means some individuals receiving EUC may have become unemployed as early as May 2006.[6]

References[edit]

  1. ^ Texas Workforce Commission, Understanding Extended Unemployment Benefits PDF
  2. ^ Washington State Employment Dept., Emergency Unemployment Compensation FAQ
  3. ^ U.S. Dept. of Labor, Unemployment Insurance Program Letter No. 04-10, Change 9
  4. ^ U.S. Dept. of Labor, Key Dates for UI Programs Following Enactment of Middle Class Tax Relief and Job Creation Act of 2012, P.L. 112-96
  5. ^ U.S. Dept. of Labor, Unemployment Insurance Extended Benefits
  6. ^ U.S. Dept. of Labor, Emergency Unemployment Compensation (EUC) Program PDF

External links[edit]