Unemployment Insurance:
Consequences of Consequences of Changes in State
Unemployment Compensation Laws
Katelin P. Isaacs
Analyst in Income Security
October 30, 2013
Congressional Research Service
7-5700
www.crs.gov
R41859
CRS Report for Congress
Prepared for Members and Committees of Congress
UI: Consequences of Changes in State Unemployment Compensation Laws
Summary
This report analyzes several types of recent changes to state Unemployment Compensation (UC)
programs. Three categories of UC state law issues are considered: (1) changes in the duration of
state UC unemployment benefits; (2) changes in the UC weekly benefit amount; and (3) the
enactment into state law of two trigger options for the Extended Benefit (EB) program.
Over the last several years, some states have enacted legislation to decrease the maximum
number of weeks of regular state UC benefits. Until recently, all states paid at least up to 26
weeks of UC benefits to eligible, unemployed individuals. In 2011, however, six states passed
legislation to decrease their maximum UC benefit durations: Arkansas, Florida, Illinois (only if
certain program criteria are met across different calendar years), Michigan, Missouri, and South
Carolina. In 2012, Georgia also passed legislation to decrease the maximum UC benefit duration.
In 2013, North Carolina enacted similar legislation.
Changes in UC benefit duration have consequences for the duration of federal unemployment
benefits that may be available to unemployed workers. Since state UC benefit duration is an
underlying factor in the calculation of duration for additional federal unemployment benefits,
reducing UC maximum duration also reduces the number of weeks available to unemployed
workers in the federal extended unemployment programs (including the Emergency
Unemployment Compensation [EUC08] and EB).
States are temporarily subject to a “nonreduction” rule (under P.L. 111-205, as amended), which
makes the availability of federally financed EUC08 benefits contingent on not actively changing
the state’s method of calculation for UC benefits, if it would decrease weekly benefit amounts.
Some states, however, make automatic adjustments to weekly benefit amounts under existing
state law. Consequently, when these states experience certain conditions, such as a decrease in the
average weekly wage used in the automatic adjustment calculation, their maximum weekly UC
benefit amount may be decreased without violating the “nonreduction” rule. Any reduction to the
UC weekly benefit amount also translates into reduced EUC08 and EB weekly benefit amounts.
P.L. 112-96 provided a specific exception to the “nonreduction” rule in the case of state
legislation enacted before March 1, 2012. In February 2013, North Carolina enacted legislation
that actively reduces UC weekly benefit amount calculations beginning in July 2013. Due to this
violation of the “nonreduction” rule, EUC08 benefits are no longer available in North Carolina,
effective June 29, 2013.
Finally, there are various optional EB trigger components—authorized under permanent federal
law (P.L. 91-373, as amended) and temporary federal law (P.L. 111-312, as amended, and P.L.
111-5, as amended)—that states may opt to enact under their state UC laws. Currently, 11 states
have adopted an optional trigger for the EB program, based on a state’s total unemployment rate
(TUR), into permanent state law. An additional 28 states have enacted this EB TUR trigger
temporarily, linking its expiration to the expiration of the temporary 100% federal financing of
the EB program under federal law (P.L. 111-5, as amended). Thirty-one states have adopted a
three-year lookback for this optional TUR trigger under current state law (temporarily authorized
under P.L. 111-312, as amended) to continue to meet the trigger criteria and continue to pay EB
benefits. In general, only states that have enacted at least one of these EB trigger options (i.e., the
TUR trigger or the three-year lookback) had been able to pay EB benefits in 2011 and 2012. As of
the week of October 27, 2013, no state meets the requirements to trigger onto EB.
Congressional Research Service
UI: Consequences of Changes in State Unemployment Compensation Laws
Overall, these three types of changes to state UC laws and programs have consequences for the
availability, duration, and amount of unemployment benefits. This report describes these changes
and analyzes their consequences for UC, EUC08, and EB benefits. It will be updated, as needed,
to reflect any additional state UC changes.
Congressional Research Service
UI: Consequences of Changes in State Unemployment Compensation Laws
Contents
Introduction...................................................................................................................................... 1
Overview of Current Unemployment Benefits ................................................................................ 1
Unemployment Compensation Program ................................................................................... 2
Maximum UC Benefit Duration .......................................................................................... 2
Emergency Unemployment Compensation Program ................................................................ 2
Extended Benefit Program ........................................................................................................ 3
State Law Changes to UC Benefit Duration .................................................................................... 4
Consequences of Reduced UC Benefit Duration for Federal Unemployment Programs .......... 7
Calculation of Benefit Duration for EUC08 Tiers............................................................... 7
Calculation of Benefit Duration for EB Payable Periods .................................................... 9
States with Reduced Weekly Benefit Amounts .............................................................................. 14
State Law Enactment of EB Trigger Options ................................................................................ 15
Tables
Table 1. States with Unemployment Compensation (UC) Law Changes That Decrease
Benefit Duration ........................................................................................................................... 6
Table 2. Adjusted Maximum EUC08 and EB Benefit Duration Resulting from Changes to
State Maximum UC Benefit Duration ........................................................................................ 10
Table 3. Extended Benefit (EB) Trigger Components Enacted by States ...................................... 17
Contacts
Author Contact Information........................................................................................................... 18
Congressional Research Service
UI: Consequences of Changes in State Unemployment Compensation Laws
Introduction
As a result of continued, high unemployment in the aftermath of the recent recession (December
2007-June 2009), many states have enacted changes to their Unemployment Compensation (UC)
programs. These state UC changes seek to accomplish two goals. First, several states are
attempting to reduce the state costs of UC benefits, which are financed through state taxes on
employers. This reduction in state UC benefit spending may be achieved through two types of
state UC changes: (1) a reduction in the duration of state UC employment benefits and (2) a
reduction in the state UC weekly benefit amount.
Second, across several states, another major goal is to take advantage of additional, federal
unemployment benefits available through the permanent-law Extended Benefit (EB) program
because these benefits are temporarily 100% federally financed (through December 31, 2013,
under current law). In support of this second major goal, many states have enacted permanent or
temporary state laws to ensure that EB benefits are payable to eligible individuals.
This report first provides a brief overview of the unemployment compensation programs and
benefits that may currently be available to eligible, unemployed individuals. Next, the three
categories of UC state law issues are analyzed:
1. changes in the duration of state UC unemployment benefits;
2. changes in the maximum UC weekly benefit amount; and
3. the enactment into state law of two trigger options for the EB program.
Overview of Current Unemployment Benefits
Several unemployment insurance (UI) programs may currently provide benefits to unemployed
workers. When eligible workers lose their jobs, the UC program may provide up to 26 weeks of
income support through the payment of regular state UC benefits.1 These UC benefits may be
extended in two ways: (1) the temporarily authorized Emergency Unemployment Compensation
(EUC08) program provides up to four tiers of additional weeks of unemployment benefits to
certain workers who have exhausted their rights to UC benefits in states with high
unemployment; 2 and (2) the EB program provides up to 13 or 20 weeks of additional
unemployment benefits if certain economic situations exist within the state.3
Provided below is a brief description of the benefits available through these three UI programs:
UC, EUC08, and EB. For detailed information on each of these programs, including more details
1
Or, in the case of the states described in the report section on “State Law Changes to UC Benefit Duration,” UC
currently pays fewer than up to 26 weeks.
2
See report section on “Calculation of Benefit Duration for EUC08 Tiers” for the calculation of EUC08 benefit
durations in states that have reduced regular UC benefit duration. Currently, in states without UC duration reductions
up to 47 weeks of total EUC08 benefits may be available in certain states with high unemployment. For more details on
the structure and availability of EUC08 benefits, see CRS Report R42444, Emergency Unemployment Compensation
(EUC08): Current Status of Benefits, by Julie M. Whittaker and Katelin P. Isaacs.
3
See report section on “Calculation of Benefit Duration for EB Payable Periods” for the calculation of EB benefit
durations in states that have reduced regular UC benefit duration.
Congressional Research Service
1
UI: Consequences of Changes in State Unemployment Compensation Laws
on the financing of each type of unemployment benefit, see CRS Report RL33362,
Unemployment Insurance: Programs and Benefits, by Julie M. Whittaker and Katelin P. Isaacs.
Unemployment Compensation Program
Authorized by the Social Security Act of 1935 (SSA; P.L. 74-271), UC is a joint federal-state
program that provides unemployment benefits to eligible individuals. Although federal laws and
regulations provide broad guidelines on UC benefit coverage, eligibility, and benefit
determination, the specifics regarding UC benefits are determined by each state. This results in
essentially 53 different programs.4 Generally, UC eligibility is based on attaining qualified wages
and employment in covered work over a 12-month period (called a base period) prior to
unemployment. All states require a worker to have earned a certain amount of wages or to have
worked for a certain period of time (or both) within the base period to be monetarily eligible to
receive any UC benefits. The methods states use to determine monetary eligibility vary greatly.
Most state benefit formulas replace approximately half of a claimant’s average weekly wage up to
a weekly maximum. State taxes paid by employers on UC-covered wages finance UC benefits.
Maximum UC Benefit Duration
Until the recent state law changes described in this report, UC programs had been paying
unemployment benefits for a maximum duration of 26 weeks. The only exceptions to the 26 week
UC benefit maximum prior to these recent state law changes were states that provided more than
26 weeks of UC benefits (Montana: up to 28 weeks; Massachusetts: up to 30 weeks). There is
nothing in federal law, however, that requires states to set their UC benefit duration maximum at
26 weeks. States have the discretion to set their own UC benefit durations via their state UC laws.
In the early decades of the UC program, there was more variation in the maximum duration of
UC benefits across states, which also tended to be lower than 26 weeks. Yet since the 1960s—and
until the 2011 state law changes—states have chosen to provide up to at least 26 weeks of UC
benefits to eligible individuals.5
Emergency Unemployment Compensation Program
Unemployment Compensation Laws
August 19, 2014
(R41859)
Summary
This report analyzes recent changes to state Unemployment Compensation (UC) programs. Two categories of UC state law issues are considered: (1) changes in the duration of state UC unemployment benefits, and (2) changes in the UC weekly benefit amount.
Over the past several years, some states have enacted legislation to decrease the maximum number of weeks of regular state UC benefits. Until recently, all states paid at least up to 26 weeks of UC benefits to eligible, unemployed individuals. In 2011, however, six states passed legislation to decrease their maximum UC benefit durations: Arkansas, Florida, Illinois (only if certain program criteria are met across different calendar years), Michigan, Missouri, and South Carolina. In 2012, Georgia also passed legislation to decrease the maximum UC benefit duration. In 2013, Kansas and North Carolina enacted similar legislation.
Changes in UC benefit duration have consequences for the duration of federal unemployment benefits that may be available to unemployed workers, including Extended Benefits (EB) and benefits from the now-expired Emergency Unemployment Compensation (EUC08) program. Because state UC benefit duration is an underlying factor in the calculation of duration for additional federal unemployment benefits, reducing UC maximum duration also reduces the number of weeks available to unemployed workers in the federal extended unemployment programs (including EUC08, which is now expired, and EB).
Prior to the expiration of the EUC08 program on December 28, 2013 (December 29, 2013, in New York), states were temporarily subject to a "nonreduction" rule (under P.L. 111-205, as amended), which made the availability of federally financed EUC08 benefits contingent on not actively changing the state's method of calculation for UC benefits, if it would have decreased weekly benefit amounts. Some states, however, make automatic adjustments to weekly benefit amounts under existing state law. Consequently, when these states experience certain conditions, such as a decrease in the average weekly wage used in the automatic adjustment calculation, their maximum weekly UC benefit amount may have been decreased without having violated the now-expired "nonreduction" rule. P.L. 112-96 provided a specific exception to the "nonreduction" rule in the case of state legislation enacted before March 1, 2012. In February 2013, North Carolina enacted legislation that actively reduces UC weekly benefit amount calculations beginning in July 2013. Due to this violation of the "nonreduction" rule, EUC08 benefits were no longer available in North Carolina, effective June 29, 2013. All EUC08 benefits expired as of the week ending on or before January 1, 2014 (i.e., December 28, 2013; or December 29, 2013, in New York State). Any reduction to the UC weekly benefit amount also translates into reduced EB weekly benefit amounts (and EUC08 benefit amounts when the program was authorized).
Overall, the two types of changes to state UC laws and programs have consequences for the duration and amount of unemployment benefits. This report describes these changes and analyzes their consequences for UC, EUC08 (when it was authorized), and EB benefits. It will be updated, as needed, to reflect additional state UC changes.
Unemployment Insurance: Consequences of Changes in State Unemployment Compensation Laws
Introduction
As a result of continued, high unemployment in the aftermath of the most recent recession (December 2007-June 2009), many states have enacted changes to their Unemployment Compensation (UC) programs. In general, several states are attempting to reduce the state costs of UC benefits, which are financed through state taxes on employers. This reduction in state UC benefit spending may be achieved through two types of state UC changes: (1) a reduction in the duration of state UC employment benefits and (2) a reduction in the state UC weekly benefit amount.
This report first provides a brief overview of the unemployment compensation programs and benefits that may currently be available to eligible, unemployed individuals. Next, the two categories of UC state law issues are analyzed:
- 1. changes in the duration of state UC unemployment benefits, and
- 2. changes in the maximum UC weekly benefit amount.
Overview of Unemployment Benefits
Several unemployment insurance (UI) programs may provide benefits to unemployed workers. When eligible workers lose their jobs, the UC program may provide up to 26 weeks of income support through the payment of regular state UC benefits.1 These UC benefits may be extended in two ways. First, the permanent-law EB program may provide up to 13 or 20 weeks of additional unemployment benefits if certain economic situations exist within the state.2 Second, until its expiration the week ending on or before January 1, 2014 (i.e., December 28, 2013; or December 29, 2013, in New York State), the temporary Emergency Unemployment Compensation (EUC08) program provided up to four tiers of additional weeks of unemployment benefits to certain workers who have exhausted their rights to UC benefits in states with high unemployment.3
Provided below is a brief description of the benefits available through these three UI programs: UC, EUC08 (when it was authorized), and EB. For detailed information on each of these programs, including more details on the financing of each type of unemployment benefit, see CRS Report RL33362, Unemployment Insurance: Programs and Benefits, by [author name scrubbed] and [author name scrubbed]. For information on legislative proposals to reauthorize the expired UI provisions, including authorization for the EUC08 program, see CRS Report R42936, Unemployment Insurance: Legislative Issues in the 113th Congress, by [author name scrubbed] and [author name scrubbed].
Unemployment Compensation Program
Authorized by the Social Security Act of 1935 (SSA; P.L. 74-271), UC is a joint federal-state program that provides unemployment benefits to eligible individuals. Although federal laws and regulations provide broad guidelines on UC benefit coverage, eligibility, and benefit determination, the specifics regarding UC benefits are determined by each state. This results in essentially 53 different programs.4 Generally, UC eligibility is based on attaining qualified wages and employment in covered work over a 12-month period (called a base period) prior to unemployment. All states require a worker to have earned a certain amount of wages or to have worked for a certain period of time (or both) within the base period to be monetarily eligible to receive any UC benefits. The methods states use to determine monetary eligibility vary greatly. Most state benefit formulas replace approximately half of a claimant's average weekly wage up to a weekly maximum. State taxes paid by employers on UC-covered wages finance UC benefits.
Maximum UC Benefit Duration
Until the recent state law changes described in this report, UC programs had been paying unemployment benefits for a maximum duration of 26 weeks. The only exceptions to the 26 week UC benefit maximum prior to these recent state law changes had been two states that provided more than 26 weeks of UC benefits (Montana: up to 28 weeks; Massachusetts: up to 30 weeks). There is nothing in federal law, however, that requires states to set their UC benefit duration maximum at 26 weeks. Thus, states have the discretion to offer fewer than 26 weeks as the maximum as well as to set their own UC benefit durations via their state UC laws. In the early decades of the UC program, there was more variation in the maximum duration of UC benefits across states, which also tended to be lower than 26 weeks. Yet since the 1960s—and until the 2011 state law changes—all states had chosen to provide up to at least 26 weeks of UC benefits to eligible individuals.5
Emergency Unemployment Compensation Program (now expired)
On June 30, 2008, the Supplemental Appropriations Act of 2008 (P.L. 110-252) created a new
temporary, federally financed unemployment insurance program, the EUC08 program. EUC08
is
was the eighth
, federal temporary program that Congress
has created to extend the number of potential
weeks of UC available to eligible, unemployed individuals during an economic slowdown.
6 State
UC agencies administer6 While it was authorized, state UC agencies administered the EUC08 benefit along with regular UC benefits.
Prior to expiration, EUC08 benefits
are
currentlywere financed with general revenue from the U.S. Treasury.
The authorization for this program expired the week ending on or before January 1, 2014 (December 28, 2013; December 29, 2013, for New York).7 There was no grandfathering of any EUC08 benefit after that date. Therefore, no EUC08 benefits are currently available.8
Prior to program expiration, the EUC08 benefit amount was equal to the eligible individual's weekly regular UC benefits; the following four tiers of EUC08 benefits were available:
Tier I was available in all states (except North Carolina),9 up to 14 weeks.
Tier II was available in states with a TUR of at least 6% (not available in North Carolina), up to 14 weeks.10
Tier III was available in states with a TUR of at least 7% (or an insured unemployment rate [IUR]11 of at least 4%; not available in North Carolina), up to 9 weeks.
Tier IV was available in states with a TUR of at least 9% (or an IUR of at least 5%; not available in North Carolina), up to 10 weeks.Extended Benefit Program
The Federal-State Extended Unemployment Compensation Act of 1970, P.L. 91-373, established the EB program. The EB program provides extended unemployment benefits in states that meet certain economic criteria. In all states, EB is available when a state's IUR or TUR reaches certain levels.12 For additional details on state triggers for the EB program, see CRS Report RL33362, The authorization for this
4
The District of Columbia, Puerto Rico, and the Virgin Islands are considered to be states in UC law.
Puerto Rico is an exception to this pattern of state convergence on 26 weeks as the maximum UC benefit duration in
the 1960s. When it originally entered the federal-state UC system in 1961, Puerto Rico provided a lower maximum UC
benefit duration (i.e., up to 16 weeks in 1961 and then up to 20 weeks for most of the 1970-1990 period). Puerto Rico
did not provide up to 26 weeks of UC benefits until 1991. For more information on state UC benefit duration, including
changes over time, see DOL’s “Significant Provisions of State UI Laws,” available at
http://www.workforcesecurity.doleta.gov/unemploy/statelaws.asp#sigprouilaws.
6
The other programs became effective in 1958, 1961, 1972, 1975, 1982, 1991, and 2002. See CRS Report RL34340,
Extending Unemployment Compensation Benefits During Recessions, by Julie M. Whittaker and Katelin P. Isaacs.
5
Congressional Research Service
2
UI: Consequences of Changes in State Unemployment Compensation Laws
program continues until the week ending on or before January 1, 2014.7 There is no
grandfathering of any EUC08 benefit after that date. Therefore, EUC08 benefits are currently
available through December 28, 2013 (December 29, 2013, for New York).
The EUC08 benefit amount is equal to the eligible individual’s weekly regular UC benefits. There
are currently four tiers of EUC08 benefits:
•
Tier I is available in all states, up to 14 weeks.
•
Tier II is available in states with a TUR of at least 6%, up to 14 weeks.8
•
Tier III is available in states with a TUR of at least 7% (or an insured
unemployment rate [IUR]9 of at least 4%), up to 9 weeks.
•
Tier IV is available in states with a TUR of at least 9% (or an IUR of at least
5%), up to 10 weeks.
Extended Benefit Program
The Federal-State Extended Unemployment Compensation Act of 1970, P.L. 91-373, established
the EB program. The EB program provides extended unemployment benefits in states that meet
certain economic criteria. In all states, EB is available when a state’s IUR or TUR reaches certain
levels.10 For additional details on state triggers for the EB program, see CRS Report RL33362,
Unemployment Insurance: Programs and Benefits
, by [author name scrubbed] and [author name scrubbed].
, by Julie M. Whittaker and Katelin P. Isaacs.
The EB program imposes additional federal restrictions on individual eligibility for benefits
beyond the state requirements for regular UC. In addition to all state requirements for regular UC
eligibility, the EB program requires claimants to have at least 20 weeks of full-time insured
employment or the equivalent in their base period and to conduct a systematic and sustained work
search. Prior to the enactment of P.L. 112-96, states were permitted to determine which benefit,
EB or EUC08, was paid first
.11 P.L. 112-96 now requires that states, when EUC08 was authorized.13 Effective with P.L. 112-96, states were required to pay EUC08 benefits before
EB benefits
.
until the EUC08 program expired December 28, 2013 (December 29, 2013, in New York State).
Under permanent law, EB benefits are funded half (50%) by the federal government and half
(50%) by states. The 2009 stimulus package (P.L. 111-5), as amended, temporarily
changes the
financing of EB benefits to be 100% federal funding through December 31, 2013.12 The EB
benefit amount is equal to the eligible individual’s weekly regular UC benefits.
7
The EUC08 program has been amended 11 times (P.L. 110-449, P.L. 111-5, P.L. 111-92, P.L. 111-118, P.L. 111-144,
P.L. 111-157, P.L. 111-205, P.L. 111-312, P.L. 112-78, P.L. 112-96, and P.L. 112-240). For more details on EUC08,
including its legislative history, CRS Report R42444, Emergency Unemployment Compensation (EUC08): Current
Status of Benefits, by Julie M. Whittaker and Katelin P. Isaacs.
8
The TUR (the total unemployment rate) is the seasonally-adjusted, three-month average of the ratio of unemployed
workers to all workers (employed and unemployed) in the labor market.
9
The IUR (the insured unemployment rate) is the ratio of UC claimants divided by individuals in UC-covered jobs.
10
DOL’s weekly trigger notices for the EB program are available online at http://www.workforcesecurity.doleta.gov/
unemploy/claims_arch.asp.
11
Alaska was the only state to pay EB benefits first when this option was available under P.L. 110-252, as amended.
12
This temporary 100% federal financing of EB benefits does not include “non-sharable” benefits (generally, these are
former state and local employees’ EB benefits).
Congressional Research Service
3
UI: Consequences of Changes in State Unemployment Compensation Laws
changed the financing of EB benefits to be 100% federal funding through December 31, 2013.14 (This temporary 100% federal funding for EB is now expired.) The EB benefit amount is equal to the eligible individual's weekly regular UC benefits.
There are two types of payable periods for EB benefits. First, if it meets certain state economic
criteria and has certain state law trigger options in place,
13 a state may pay EB benefits through an
EB Unemployment Period. As discussed below, the duration of an EB Unemployment Period is
based on the duration of regular UC benefits. For most states (i.e., those states with a UC
maximum duration of up to 26 weeks), the EB Unemployment Period may provide up to 13
additional weeks of unemployment benefits to eligible individuals.
Second, a state may pay benefits through an EB High Unemployment Period if that state meets
certain state economic criteria and has certain state law trigger options in place.
1415 Because the
duration of an EB High Unemployment Period is based on the duration of regular UC benefits in
most states (i.e., those states with a UC maximum duration of up to 26 weeks), up to 20 additional
weeks of EB benefits may be available to eligible individuals.
State Law Changes to UC Benefit Duration
Regular state UC benefits are financed through state payroll taxes on employers. The state
unemployment tax rate on employers in all states is
“"experience rated,
”" that is, the state tax rate is
based on the amount of UC paid to former employees. Generally, the more UC benefits paid to its
former employees, the higher the tax rate of the employer, up to a maximum established by
state law.
state law.
As a result of the most recent recession and its accompanying prolonged and high unemployment,
states have paid out large amounts of UC benefits ($75.3 billion in FY2009 and $63.0 billion in
FY2010 versus $30.2 billion in FY2006 and $31.4 billion in FY2007).
1516 This increase in state
expenditures on UC benefits has also led to large outstanding federal loans in many
states16 as
states17 as well as increased employer tax rates in most states.
In response to similar state UC financial stress following prior recessions, states have typically
reduced the amount of UC benefits paid to individuals through reductions in the maximum
benefit amount or through changes in the underlying benefit calculations.
Under current federal
lawPrior to the expiration of EUC08, however, most states
arewere temporarily prohibited from reducing UC benefit amounts through
changes to benefit
calculation17calculation18 and, therefore,
have acted to reduce UC benefit duration as an
alternative means to decrease total UC benefit payments. Therefore, these state UC benefit
duration reductions are, in part, a response to UC financial crises facing states.
At the same time, however, the duration for current federal unemployment benefits—
any EB periods (and each tier of
the EUC08 program
and any EB periodswhen it was authorized)—are calculated based on state UC benefit duration.
Thus, states that have enacted laws to reduce the duration of regular UC benefits have also
reduced the duration of EUC08 and EB benefits.
13
For details on these EB triggers, see report section on “State Law Enactment of EB Trigger Options.”
Ibid.
15
For more details on revenues and expenditures associated with UC benefits, see CRS Report RL33362,
Unemployment Insurance: Programs and Benefits, by Julie M. Whittaker and Katelin P. Isaacs.
16
For more details on federal loans to states to pay UC benefits, see CRS Report RS22954, The Unemployment Trust
Fund (UTF): State Insolvency and Federal Loans to States, by Julie M. Whittaker.
17
For a fuller discussion of this issue, including details on two states that have been able to reduce weekly UC benefit
amounts, see the report section on “States with Reduced Weekly Benefit Amounts.”
14
Congressional Research Service
4
UI: Consequences of Changes in State Unemployment Compensation Laws
Currently, there are seven reduced the duration of EB benefits (and EUC08 benefits when that program was still authorized).
Currently, there are eight states with decreased maximum UC durations in effect:
•
ArkansasArkansas decreased its state UC maximum duration from 26 weeks to 25 weeks,
effective March 30, 2011.
•
Florida
Florida decreased the maximum UC duration from 26 weeks to a variable
maximum duration, depending on the state unemployment rate and ranging from
12 weeks up to 23 weeks. Up to 12 weeks will be available if the state
unemployment rate is 5% or less. Each 0.5% increase in the state unemployment
rate above 5% will add an additional week of UC benefit duration. Finally, up to
23 weeks of regular UC benefits will be available if the state unemployment rate
is at least 10.5%.
18 This benefit reduction was effective January 1, 2012.
•
Georgia
Georgia decreased its UC maximum duration from 26 weeks to a variable
maximum duration that ranges between 14 weeks and 20 weeks, depending on
the unemployment rate in the state. A maximum UC duration of 14 weeks will be
available if the state unemployment rate is 6.5% or less. Each 0.5% increase in
the state unemployment rate above 6.5% will add additional weeks of UC benefit
duration up to a maximum of 20 weeks of UC benefits if the state unemployment
rate is at least 9%.
19 This benefit reduction was effective May 2, 2012.
•
Michigan decreased its UC maximum duration from 26 weeks to 20 weeks. This
Kansas decreased its UC maximum duration from 26 weeks to a variable maximum duration, using a tiered system based on the state unemployment rate. Up to 16 weeks will be available if the state unemployment rate is less than 4.5%; up to 20 weeks if the state unemployment rate is at least 4.5% and less than 6.0%; and up to 26 weeks if the state unemployment rate is at least 6.0%. This benefit reduction was effective for individuals filing an initial claim for UC benefits beginning on or after January 1, 2014.
Michigan decreased its UC maximum duration from 26 weeks to 20 weeks. This change was effective for individuals filing an initial claim for UC benefits on or
after January 15, 2012.
•
Missouri
Missouri decreased its UC maximum duration from 26 weeks to 20 weeks,
effective April 13, 2011.
•
North Carolina decreased the maximum UC duration from 26 weeks to a
variable maximum duration, depending on the state unemployment rate and
ranging from 12 weeks up to 20 weeks. Up to 12 weeks will be available if the
state unemployment rate is 5.5% or less. Each 0.5% increase in the state
unemployment rate above 5.5% will add an additional week of UC benefit
duration. Finally, up to 20 weeks of regular UC benefits will be available if the
state unemployment rate is greater than 9%.
20 This benefit reduction is effective
for individuals filing an initial claim for UC benefits on or after July 1, 2013.
•
South Carolina also decreased its UC maximum duration from 26 weeks to 20
weeks, effective June 14, 2011.
AdditionallyIn addition, one state enacted a law with the potential to decrease maximum UC
duration if certain program criteria are met across different calendar years:
•
IllinoisIllinois enacted a law that has the potential to decrease UC maximum duration in
the state (i.e., from up to 26 weeks down to up to 25 weeks or up to 24 weeks
), ),
depending on certain program criteria as well as calendar year. This law was
18
The three-month average, seasonally adjusted unemployment rate for Florida in May 2013 is 7.3%, as determined by
the U.S. Department of Labor.
19
The three-month average, seasonally adjusted unemployment rate for Georgia in May 2013 is 8.3%, as determined
by the U.S. Department of Labor.
20
The three-month average, seasonally adjusted unemployment rate for North Carolina in May 2013 is 9.0%, as
determined by the U.S. Department of Labor.
Congressional Research Service
5
UI: Consequences of Changes in State Unemployment Compensation Laws
effective January 1, 2012. In 2012, the program criteria were met so that only up
to 25 weeks of UC benefits were available. In
2013subsequent years, however, the required
program criteria
were not have not been met. Therefore, up to 26 weeks of UC benefits are
currently available in Illinois.
Table 1 also provides details on these state changes to UC benefit duration.
Table 1. States with Unemployment Compensation (UC) Law Changes
That That Decrease Benefit Duration
State
State Bill or Act
Number
Prior Maximum
UC Duration
New Maximum
UC Duration
Effective Date of New
Maximum UC
Duration
Arkansas
Act 861, 88th
General Assembly
26 weeks
25 weeks
Effective upon enactment
(March 30, 2011)
Florida
Chapter 2011-235,
Laws of Florida
26 weeks
Variable duration
based on state
unemployment rate:
Effective January 1, 2012
(1) 12 weeks if state
unemployment rate
is 5% or below
(2) additional week
added to 12 weeks
for each 0.5%
increase in state
unemployment rate
above 5%
(3) 23 weeks if state
unemployment rate
is at least 10.5%
Georgia
Act 710 (House Bill
347), Georgia
General Assembly,
2011-2012 Regular
Session
26 weeks
Variable duration
based on state
unemployment rate:
Effective May 2, 2012
(1) 14 weeks if state
unemployment rate
is 6.5% or below
(2) additional amount
added to 14 weeks
for each 0.5%
increase in state
unemployment rate
above 6.5%
(3) 20 weeks if state
unemployment rate
is at least 9.0%
Illinois
Public Act 097-0001,
97th General
Assembly
Congressional Research Service
26 weeks
Variable duration
based on program
criteria and calendar
year (ranging from
State
|
State Bill or Act Number
|
Prior Maximum UC Duration
|
New Maximum UC Duration
|
Effective Date of New Maximum UC Duration
|
Arkansas
|
Act 861, 88th General Assembly
|
26 weeks
|
25 weeks
|
Effective upon enactment (March 30, 2011)
|
Florida
|
Chapter 2011-235, Laws of Florida
|
26 weeks
|
Variable duration based on state unemployment rate:
(1) 12 weeks if state unemployment rate is 5% or below
(2) additional week added to 12 weeks for each 0.5% increase in state unemployment rate above 5%
(3) 23 weeks if state unemployment rate is at least 10.5%
|
Effective January 1, 2012
|
Georgia
|
Act 710 (House Bill 347), Georgia General Assembly, 2011-2012 Regular Session
|
26 weeks
|
Variable duration based on state unemployment rate:
(1) 14 weeks if state unemployment rate is 6.5% or below
(2) additional amount added to 14 weeks for each 0.5% increase in state unemployment rate above 6.5%
(3) 20 weeks if state unemployment rate is at least 9.0%
|
Effective May 2, 2012
|
Illinois
|
Public Act 097-0001, 97th General Assembly
|
26 weeks
|
Variable duration based on program criteria and calendar year (ranging from up to 24 weeks to
up
to 26 weeks)
Effective January 1, 2012
6
UI: Consequences of Changes in State Unemployment Compensation Laws
State
State Bill or Act
Number
Prior Maximum
UC Duration
New Maximum
UC Duration
Effective Date of New
Maximum UC
Duration
Michigan
Act No. 14, Public
Acts of 2011
26 weeks
20 weeks
Effective for individuals
filing an initial claim for
UC benefits on or after
January 15, 2012
Missouri
House Bill No. 163,
96th General
Assembly
26 weeks
20 weeks
Effective upon enactment
(April 13, 2011)
North Carolina
Session Law 2013-2,
General Assembly of
North Carolina,
Session 2013
26 weeks
Variable duration
based on state
unemployment rate:
Effective July 1, 2013
(1) 12 weeks if state
unemployment rate
is 5.5% or below
(2) additional week
added to 12 weeks
for each 0.5%
increase in state
unemployment rate
above 5.5%
(3) 20 weeks if state
unemployment rate
is greater than 9.0%
South Carolina
Act No. 63, South
Carolina General
Assembly, 119th
Session
26 weeks
20 weeks
Effective upon enactment
(June 14, 2011)
Source: Compiled by the Congressional Research Service.
Consequences of Reduced UC Benefit Duration for Federal
Unemployment Programs
Calculation of Benefit Duration for EUC08 Tiers
The duration of each tier of benefits in the EUC08 program is calculated through a formula based
on state UC benefit duration.21 Therefore, states that have enacted laws to reduce the duration of
regular UC benefits will also experience a reduction in the duration of EUC08 benefits.
21
Under current law, the duration of benefits for each tier of EUC08 (as well as any EB payable period) is set through
calculations based on the lesser of (1) the state benefit criteria, which is a set percentage of the duration of regular UC
benefits (e.g., 54% of the individual’s total regular UC duration in a benefit year for Tier I of EUC08, currently) or (2)
the maximum weekly amount criteria, which is the multiple of an individual’s average weekly benefit amount under the
UC program (e.g., 13 times an individual’s average weekly benefit amount in a benefit year for Tier I of EUC08,
currently). In the event of state reduction in UC benefit durations, the former calculation—the state benefit criteria—
will be lower and, thus, applicable. Therefore, this report’s discussion of the benefit duration calculation for all tiers of
EUC08 and all payable periods of EB focuses on this state benefit criteria formula in its explanations and illustrations
of duration calculations.
Congressional Research Service
7
UI: Consequences of Changes in State Unemployment Compensation Laws
Specific formulas for the duration of each tier of EUC08 are presented below.22 Examples of
adjusted EUC08 benefit durations—based on a weekly benefit amount of $300 and a new
maximum UC duration of 20 weeks—are also provided:23
•
Tier I of EUC08
•
Duration formula: 54% of the duration of an individual’s total regular UC
benefits in benefit year
•
Illustration of adjusted duration (formerly, the unreduced EUC08 tier I
duration would have been up to 20 weeks—based on up to 26 weeks of
unreduced state UC benefits—at a weekly benefit amount of $300)
•
•
Tier II of EUC08
•
Duration formula: 54% of the duration of an individual’s total regular UC
benefits in benefit year
•
Illustration of adjusted duration (formerly, up to 14 weeks at $300)
•
•
54% of 20 weeks of UC=10.8 weeks; up to 10 weeks at weekly benefit
amount of $300 and the last week prorated at $240 ($300/0.8=$240)
Tier III of EUC08
•
Duration formula: 35% of the duration of an individual’s total regular UC
benefits in benefit year
•
Illustration of adjusted duration (formerly, up to 13 weeks at $300)
•
•
54% of 20 weeks of UC=10.8 weeks; up to 10 weeks at weekly benefit
amount of $300 and the last week prorated at $240 ($300/0.8=$240)
35% of 20 weeks of UC=7 weeks; up to 7 weeks at weekly benefit
amount of $300
Tier IV of EUC08
•
Duration formula: 39% of the duration of an individual’s total regular UC
benefits in benefit year
•
Illustration of adjusted duration (formerly, up to 6 weeks at $300)
•
39% of 20 weeks of UC=7.8 weeks; up to 7 weeks at weekly benefit
amount of $300 and the last week prorated at $240 ($300/0.8=$240)
EUC08 tier duration calculations for each state that has enacted a reduction in regular UC benefit
up to 26 weeks)
Effective January 1, 2012
|
Kansas
|
Substitute for HB 2105
|
26 weeks
|
Variable duration by tiers based on state unemployment rate:
(1) 16 weeks if state unemployment rate is less than 4.5%
(2) 20 weeks if state unemployment rate is at least 4.5% but less than 6.0%
(3) 26 weeks if state unemployment rate is at least 6.0%
|
Effective for individuals filing an initial claim for UC benefits on or after January 1, 2014
|
Michigan
|
Act No. 14, Public Acts of 2011
|
26 weeks
|
20 weeks
|
Effective for individuals filing an initial claim for UC benefits on or after January 15, 2012
|
Missouri
|
House Bill No. 163, 96th General Assembly
|
26 weeks
|
20 weeks
|
Effective upon enactment (April 13, 2011)
|
North Carolina
|
Session Law 2013-2, General Assembly of North Carolina, Session 2013
|
26 weeks
|
Variable duration based on state unemployment rate:
(1) 12 weeks if state unemployment rate is 5.5% or below
(2) additional week added to 12 weeks for each 0.5% increase in state unemployment rate above 5.5%
(3) 20 weeks if state unemployment rate is greater than 9.0%
|
Effective July 1, 2013
|
South Carolina
|
Act No. 63, South Carolina General Assembly, 119th Session
|
26 weeks
|
20 weeks
|
Effective upon enactment (June 14, 2011)
|
Source: Compiled by the Congressional Research Service.
Consequences of Reduced UC Benefit Duration for Federal Unemployment Programs
Calculation of Benefit Duration for EUC08 Tiers (when EUC08 was authorized)
Prior to the expiration of EUC08, the duration of each tier of benefits was calculated through a formula based on state UC benefit duration.19 Therefore, states that enacted laws to reduce the duration of regular UC benefits also experienced a reduction in the duration of EUC08 benefits when the program was authorized.
Specific formulas for the duration of each tier of EUC08 (when authorized) are presented below.20 Examples of adjusted EUC08 benefit durations—based on a weekly benefit amount of $300 and a new maximum UC duration of 20 weeks—are also provided:21- Tier I of EUC08 (prior to expiration)
- Duration formula: 54% of the duration of an individual's total regular UC benefits in benefit year
- Illustration of adjusted duration (formerly, the unreduced EUC08 tier I duration would have been up to 20 weeks—based on up to 26 weeks of unreduced state UC benefits—at a weekly benefit amount of $300)
- 54% of 20 weeks of UC = 10.8 weeks; up to 10 weeks at weekly benefit amount of $300 and the last week prorated at $240 ($300/0.8 = $240)
- Tier II of EUC08 (prior to expiration)
- Duration formula: 54% of the duration of an individual's total regular UC benefits in benefit year
- Illustration of adjusted duration (formerly, up to 14 weeks at $300)
- 54% of 20 weeks of UC = 10.8 weeks; up to 10 weeks at weekly benefit amount of $300 and the last week prorated at $240 ($300/0.8 = $240)
- Tier III of EUC08 (prior to expiration)
- Duration formula: 35% of the duration of an individual's total regular UC benefits in benefit year
- Illustration of adjusted duration (formerly, up to 13 weeks at $300)
- 35% of 20 weeks of UC = 7 weeks; up to 7 weeks at weekly benefit amount of $300
- Tier IV of EUC08 (prior to expiration)
- Duration formula: 39% of the duration of an individual's total regular UC benefits in benefit year
- Illustration of adjusted duration (formerly, up to 6 weeks at $300)
- 39% of 20 weeks of UC = 7.8 weeks; up to 7 weeks at weekly benefit amount of $300 and the last week prorated at $240 ($300/0.8 = $240)
EUC08 tier duration calculations (prior to program expiration) for each state that enacted a reduction in regular UC benefit duration are provided in
Table 2.
Calculation of Benefit Duration for EB Payable Periods
Table 2.
22
These EUC08 benefit duration formulas are currently effective for EUC08 tiers. The structure and availability of
EUC08 tiers has changed several times since the initial EUC08 program authorization. For more details on this
legislative history, see CRS Report R42444, Emergency Unemployment Compensation (EUC08): Current Status of
Benefits, by Julie M. Whittaker and Katelin P. Isaacs.
23
The average weekly benefit amount is roughly $300 across all states for September 2013 (DOL). Michigan,
Missouri, and South Carolina have enacted state laws to reduce their maximum UC benefit duration to 20 weeks.
Congressional Research Service
8
UI: Consequences of Changes in State Unemployment Compensation Laws
Calculation of Benefit Duration for EB Payable Periods
The duration of benefits for the two types of EB payable periods are set through calculations
similar in structure to the calculations for EUC08 tier durations
.24 As is (when EUC08 was authorized).22 As was the case with the EUC08
program, state reductions in UC benefit durations lead to proportional reductions in the duration
of the EB payable periods.
The EB payable period duration calculations and illustration of adjusted EB durations (using
$300 as the weekly benefit amount and a new UC maximum duration of 20 weeks)
2523 are below:
•
EB Unemployment Period
•
Duration formula: 50% of the duration of individual
’'s total regular UC
benefits in benefit year
•
Illustration of adjusted duration (formerly up to 13 weeks at $300)
•
•
50% of 20 weeks of UC
= = 10 weeks; up to 10 weeks at weekly benefit
amount of $300
EB High Unemployment Period
•
Duration formula: 80% of the duration
individual’of individual's total regular UC benefits
in benefit year
•
Illustration of adjusted duration (formerly up to 20 weeks at $300)
•
80% of 20 weeks of UC
= = 16 weeks; up to 16 weeks at weekly benefit
amount of $300
Table 2 displays EB payable period duration calculations for each state that has enacted a
reduction in regular UC benefit duration.
24
25
See footnote 21 for more technical details.
See footnote 23 for rationale behind these data points.
Congressional Research Service
9
UI: Consequences of Changes in State Unemployment Compensation Laws
Table 2. Adjusted Maximum EUC08
(when authorized) and EB Benefit Duration Resulting from Changes to State Maximum
UC Benefit Duration
State
Adjusted
Maximum
UC
Duration
Arkansas
25 weeks
Florida
Variable
duration based
on state
unemployment
rate:
(1) 12 weeks if
state
unemployment
rate is 5% or
below
(2) additional
week added to
12 weeks for
each 0.5%
increase in
state
unemployment
rate above 5%
(3) 23 weeks if
state
unemployment
rate is at least
10.5%
CRS-10
Adjusted
Maximum
EUC08 Tier
I Duration
Adjusted
Maximum
EUC08 Tier
II Duration
Adjusted
Maximum
EUC08 Tier
III Duration
Adjusted
Maximum
EUC08 Tier
IV Duration
Adjusted
Maximum EB
Unemployment
Period
Duration
13 weeks and
1 week at
0.5xWBA
13 weeks and
1 week at
0.5xWBA
8 weeks and
1 week at
0.75xWBA
9 weeks and
1 week at
0.75xWBA
12 weeks and 1
week at
0.5xWBA
Adjusted
Maximum EB
High
Unemployment
Period
Duration
20 weeks
Effective
Date for
Adjusted
UC
Durations
Effective
3/31/11
Adjusted
Benefit
Duration
Maximum
from All
Programs
90.5 weeks
Effective
1/1/12
With 12
week UC
duration: 6
weeks and 1
week at
0.48xWBA
With 12
week UC
duration: 6
weeks and 1
week at
0.48xWBA
With 12
week UC
duration: 4
weeks and 1
week at
0.2xWBA
With 12
week UC
duration: 4
weeks and 1
week at
0.68xWBA
With 12 week
UC duration: 6
weeks at WBA
With 12 week
UC duration: 9
weeks at WBA
and 1 week at
0.6xWBA
With 12
week UC
duration:
43.428 weeks
With 23
week UC
duration: 12
weeks and 1
week at
0.42xWBA
With 23
week UC
duration: 12
weeks and 1
week at
0.42xWBA
With 23
week UC
duration: 8
weeks and 1
week at
0.05xWBA
With 23
week UC
duration: 8
weeks and 1
week at
0.97xWBA
With 23 week
UC duration: 11
weeks at WBA
and 1 week at
0.5xWBA
With 23 week
UC duration: 18
weeks at WBA
and 1 week at
0.4xWBA
With 23
week UC
duration:
83.26 weeks
UI: Consequences of Changes in State Unemployment Compensation Laws
State
Georgia
Adjusted
Maximum
UC
Duration
Adjusted
Maximum
EUC08 Tier
I Duration
Adjusted
Maximum
EUC08 Tier
II Duration
Adjusted
Maximum
EUC08 Tier
III Duration
Adjusted
Maximum
EUC08 Tier
IV Duration
Adjusted
Maximum EB
Unemployment
Period
Duration
Adjusted
Maximum EB
High
Unemployment
Period
Duration
Variable
duration based
on state
unemployment
rate:
(1) 14 weeks if
state
unemployment
rate is 6.5% or
below
Effective
Date for
Adjusted
UC
Durations
Adjusted
Benefit
Duration
Maximum
from All
Programs
Effective
5/2/2012
With 14
week UC
duration: 7
weeks and 1
week at
0.56xWBA
With 14
week UC
duration: 7
weeks and 1
week at
0.56xWBA
With 14
week UC
duration: 4
weeks and 1
week at
0.9xWBA
With 14
week UC
duration: 5
weeks and 1
week at
0.46xWBA
With 14 week
UC duration: 7
weeks at WBA
With 14 week
UC duration: 11
weeks at WBA
and 1 week at
0.2xWBA
With 14
week UC
duration:
50.68 weeks
(3) 20 weeks if
state
unemployment
rate is at least
9.0%
With 20
week UC
duration: 10
weeks and 1
week at
0.8xWBA
With 20
week UC
duration: 10
weeks and 1
week at
0.8xWBA
With 20
week UC
duration: 7
weeks
With 20
week UC
duration: 7
weeks and 1
week at
0.8xWBA
With 20 week
UC duration: 10
weeks
With 20 week
UC duration: 16
weeks
With 20
week UC
duration: 72.4
weeks
20 weeks
10 weeks and
1 week at
0.8xWBA
10 weeks and
1 week at
0.8xWBA
With 20
week UC
duration: 7
weeks
With 20
week UC
duration: 7
weeks and 1
week at
0.8xWBA
10 weeks
16 weeks
(2) additional
amount added
to 14 weeks
for each 0.5%
increase in
state
unemployment
rate above
6.5%
Michigan
CRS-11
Effective for
individuals
filing initial
claims for UC
benefits on or
after 1/15/12
72.4 weeks
UI: Consequences of Changes in State Unemployment Compensation Laws
State
Adjusted
Maximum
UC
Duration
Missouri
20 weeks
North
Carolina
Variable
duration based
on state
unemployment
rate:
(1) 12 weeks if
state
unemployment
rate is 5.5% or
below
Adjusted
Maximum
EUC08 Tier
I Duration
Adjusted
Maximum
EUC08 Tier
II Duration
Adjusted
Maximum
EUC08 Tier
III Duration
Adjusted
Maximum
EUC08 Tier
IV Duration
10 weeks and
1 week at
0.8xWBA
10 weeks and
1 week at
0.8xWBA
With 20
week UC
duration: 7
weeks
With 20
week UC
duration: 7
weeks and 1
week at
0.8xWBA
Adjusted
Maximum EB
Unemployment
Period
Duration
Adjusted
Maximum EB
High
Unemployment
Period
Duration
10 weeks
16 weeks
Effective
Date for
Adjusted
UC
Durations
Effective
4/13/11
Adjusted
Benefit
Duration
Maximum
from All
Programs
72.4 weeks
Effective for
individuals
filing initial
claims for UC
benefits on or
after 7/1/13
NA
NA
NA
NA
With 12 week
UC duration: 6
weeks at WBA
With 12 week
UC duration: 9
weeks at WBA
and 1 week at
0.6xWBA
With 12
week UC
duration: 21.6
weeks
NA
NA
NA
NA
With 20 week
UC duration: 10
weeks
With 20 week
UC duration: 16
weeks
With 20
week UC
duration: 36
weeks
(2) additional
week added to
12 weeks for
each 0.5%
increase in
state
unemployment
rate above
5.5%
(3) 20 weeks if
state
unemployment
rate is greater
than 9.0%
CRS-12
UI: Consequences of Changes in State Unemployment Compensation Laws
State
South
Carolina
Adjusted
Maximum
UC
Duration
20 weeks
Adjusted
Maximum
EUC08 Tier
I Duration
Adjusted
Maximum
EUC08 Tier
II Duration
Adjusted
Maximum
EUC08 Tier
III Duration
Adjusted
Maximum
EUC08 Tier
IV Duration
10 weeks and
1 week at
0.8xWBA
10 weeks and
1 week at
0.8xWBA
With 20
week UC
duration: 7
weeks
With 20
week UC
duration: 7
weeks and 1
week at
0.8xWBA
Adjusted
Maximum EB
Unemployment
Period
Duration
Adjusted
Maximum EB
High
Unemployment
Period
Duration
10 weeks
16 weeks
Effective
Date for
Adjusted
UC
Durations
Effective
6/14/11
Adjusted
Benefit
Duration
Maximum
from All
Programs
72.4 weeks
Source: Compiled by Congressional Research Service.
Notes: WBA: weekly benefit amount. All weeks of benefits are paid out in terms of full WBA unless a pro-rated WBA calculation is provided. States may augment prorated weeks of EUC08 tiers with amounts from subsequent EUC08 tiers in order to bring payments up to the full weekly benefit amount (Employment and Training
Administration, U.S. Department of Labor, “Emergency Unemployment Compensation, 2008—Questions and Answers,” Unemployment Insurance Program Letter 23-08,
Change 3, December 24, 2008, http://wdr.doleta.gov/directives/attach/UIPL/UIPL23-08C3.pdf )The “Adjusted Benefit Duration Maximum from All Programs” column sums
the total weeks from all four tiers of EUC08 and an EB High Unemployment Period, including full weeks of WBA and pro-rated weeks of WBA.
Illinois is not listed in this table since there is no UC maximum duration reduction effective in IL currently.
NA: not available. Due to a violation of the “nonreduction” rule (under P.L. 111-205, as amended), the EUC08 agreement between North Carolina and the Secretary of the
U.S. Department of Labor has terminated. All tiers of EUC08 ended in North Carolina as of June 29, 2013.
The adjusted maximum benefit durations listed in the table for EUC08 and EB (and the maximum duration from all programs, which had previously been 93 weeks) apply to
beneficiaries who file an initial claim for UC benefits after the effective date for adjusted UC durations. Individuals who received or are receiving UC benefits prior to the
effective date for the state reduction in maximum UC benefits maintain the previous, unreduced UC, EUC08, and EB benefit durations. The EUC08 benefit duration
formulas provided in this table are effective for EUC08 tiers currently authorized under P.L. 112-240 UC Benefit Duration
State
|
Adjusted Maximum UC Duration
|
Adjusted Maximum EUC08 Tier I Duration (prior to expiration)
|
Adjusted Maximum EUC08 Tier II Duration(prior to expiration)
Adjusted Maximum EUC08 Tier III Duration(prior to expiration)
Adjusted Maximum EUC08 Tier IV Duration(prior to expiration)
Adjusted Maximum EB Unemployment Period Duration
|
Adjusted Maximum EB High Unemployment Period Duration
|
Effective Date for Adjusted UC Durations
|
Adjusted Benefit Duration Maximum from All Programs(prior to EUC08 expiration)
Arkansas
|
25 weeks
|
13 weeks and 1 week at 0.5 × WBA
|
13 weeks and 1 week at 0.5 × WBA
|
8 weeks and 1 week at 0.75 × WBA
|
9 weeks and 1 week at 0.75 × WBA
|
12 weeks and 1 week at 0.5 × WBA
|
20 weeks
|
Effective 3/31/11
|
90.5 weeks
|
Florida
|
Variable duration based on state unemployment rate:
|
Effective 1/1/12
|
(1) 12 weeks if state unemployment rate is 5% or below
(2) additional week added to 12 weeks for each 0.5% increase in state unemployment rate above 5%
|
With 12 week UC duration: 6 weeks and 1 week at 0.48 × WBA
|
With 12 week UC duration: 6 weeks and 1 week at 0.48 × WBA
|
With 12 week UC duration: 4 weeks and 1 week at 0.2 × WBA
|
With 12 week UC duration: 4 weeks and 1 week at 0.68 × WBA
|
With 12 week UC duration: 6 weeks at WBA
|
With 12 week UC duration: 9 weeks at WBA and 1 week at 0.6 × WBA
|
With 12 week UC duration: 43.428 weeks
|
(3) 23 weeks if state unemployment rate is at least 10.5%
|
With 23 week UC duration: 12 weeks and 1 week at 0.42 × WBA
|
With 23 week UC duration: 12 weeks and 1 week at 0.42 × WBA
|
With 23 week UC duration: 8 weeks and 1 week at 0.05 × WBA
|
With 23 week UC duration: 8 weeks and 1 week at 0.97 × WBA
|
With 23 week UC duration: 11 weeks at WBA and 1 week at 0.5 × WBA
|
With 23 week UC duration: 18 weeks at WBA and 1 week at 0.4 × WBA
|
With 23 week UC duration: 83.26 weeks
|
Georgia
|
Variable duration based on state unemployment rate:
|
Effective 5/2/2012
|
(1) 14 weeks if state unemployment rate is 6.5% or below
With 14 week UC duration: 7 weeks and 1 week at 0.56 × WBA
|
With 14 week UC duration: 7 weeks and 1 week at 0.56 × WBA
|
With 14 week UC duration: 4 weeks and 1 week at 0.9 × WBA
|
With 14 week UC duration: 5 weeks and 1 week at 0.46 × WBA
|
With 14 week UC duration: 7 weeks at WBA
|
With 14 week UC duration: 11 weeks at WBA and 1 week at 0.2 × WBA
|
With 14 week UC duration: 50.68 weeks
|
(2) additional amount added to 14 weeks for each 0.5% increase in state unemployment rate above 6.5%
|
(3) 20 weeks if state unemployment rate is at least 9.0%
|
With 20 week UC duration: 10 weeks and 1 week at 0.8 × WBA
|
With 20 week UC duration: 10 weeks and 1 week at 0.8 × WBA
|
With 20 week UC duration: 7 weeks
|
With 20 week UC duration: 7 weeks and 1 week at 0.8 × WBA
|
With 20 week UC duration: 10 weeks
|
With 20 week UC duration: 16 weeks
|
With 20 week UC duration: 72.4 weeks
|
Kansas
|
Variable duration by tiers based on state unemployment rate:
|
Effective for individuals filing initial claims for UC benefits on or after 1/1/14
|
(1) 16 weeks if state unemployment rate is less than 4.5%
|
With 16 week UC duration: 8 weeks and 1 week at 0.64 × WBA
|
With 16 week UC duration: 8 weeks and 1 week at 0.64 × WBA
|
With 16 week UC duration: 5 weeks and 1 week at 0.6 × WBA
|
With 16 week UC duration: 6 weeks and 1 week at 0.24 × WBA
|
With 16 week UC duration: 8 weeks
|
With 16 week UC duration: 12 weeks and 1 week at 0.8 × WBA
|
With 16 week UC duration: 57.9 weeks
|
(2) 20 weeks if state unemployment rate is at least 4.5% but less than 6.0%
|
With 20 week UC duration: 10 weeks and 1 week at 0.8 × WBA
|
With 20 week UC duration: 10 weeks and 1 week at 0.8 × WBA
|
With 20 week UC duration: 7 weeks
|
With 20 week UC duration: 7 weeks and 1 week at 0.8 × WBA
|
With 20 week UC duration: 10 weeks
|
With 20 week UC duration: 16 weeks
|
With 20 week UC duration: 72.4 weeks
|
(3) 26 weeks if state unemployment rate is at least 6.0%
|
With 26 week UC duration: 14 weeks
|
With 26 week UC duration: 14 weeks
|
With 26 week UC duration: 9 weeks
|
With 26 week UC duration: 10 weeks
|
With 26 week UC duration: 13 weeks
|
With 26 week UC duration: 20 weeks
|
With 26 week UC duration: 93 weeks
|
Michigan
|
20 weeks
|
10 weeks and 1 week at 0.8 × WBA
|
10 weeks and 1 week at 0.8 × WBA
|
With 20 week UC duration: 7 weeks
|
With 20 week UC duration: 7 weeks and 1 week at 0.8 × WBA
|
10 weeks
|
16 weeks
|
Effective for individuals filing initial claims for UC benefits on or after 1/15/12
|
72.4 weeks
|
Missouri
|
20 weeks
|
10 weeks and 1 week at 0.8 × WBA
|
10 weeks and 1 week at 0.8 × WBA
|
With 20 week UC duration: 7 weeks
|
With 20 week UC duration: 7 weeks and 1 week at 0.8 × WBA
|
10 weeks
|
16 weeks
|
Effective 4/13/11
|
72.4 weeks
|
North Carolina
|
Variable duration based on state unemployment rate:
|
Effective for individuals filing initial claims for UC benefits on or after 7/1/13
|
(1) 12 weeks if state unemployment rate is 5.5% or below
NA
|
NA
|
NA
|
NA
|
With 12 week UC duration: 6 weeks at WBA
|
With 12 week UC duration: 9 weeks at WBA and 1 week at 0.6 × WBA
|
With 12 week UC duration: 21.6 weeks
|
(2) additional week added to 12 weeks for each 0.5% increase in state unemployment rate above 5.5%
|
(3) 20 weeks if state unemployment rate is greater than 9.0%
|
NA
|
NA
|
NA
|
NA
|
With 20 week UC duration: 10 weeks
|
With 20 week UC duration: 16 weeks
|
With 20 week UC duration: 36 weeks
|
South Carolina
|
20 weeks
|
10 weeks and 1 week at 0.8 × WBA
|
10 weeks and 1 week at 0.8 × WBA
|
With 20 week UC duration: 7 weeks
|
With 20 week UC duration: 7 weeks and 1 week at 0.8 × WBA
|
10 weeks
|
16 weeks
|
Effective 6/14/11
|
72.4 weeks
|
Source: Compiled by Congressional Research Service.
Notes: The authorization for the EUC08 program expired the week ending on or before January 1, 2014. Consequently, EUC08 benefits were available through December 28, 2013 (December 29, 2013, for New York). Adjusted maximum EUC08 benefit durations and adjusted maximum durations from all programs reflect EUC08 benefits authorized prior to this expiration.WBA: weekly benefit amount. All weeks of benefits are paid out in terms of full WBA unless a pro-rated WBA calculation is provided. States were authorized to augment pro-rated weeks of EUC08 tiers with amounts from subsequent EUC08 tiers to bring payments up to the full weekly benefit amount (Employment and Training Administration, U.S. Department of Labor, "Emergency Unemployment Compensation, 2008—Questions and Answers," Unemployment Insurance Program Letter 23-08, Change 3, December 24, 2008, http://wdr.doleta.gov/directives/attach/UIPL/UIPL23-08C3.pdf ). The "Adjusted Benefit Duration Maximum from All Programs" column sums the total weeks from all four tiers of EUC08 and an EB High Unemployment Period, including full weeks of WBA and pro-rated weeks of WBA.
Illinois is not listed in this table because there is no UC maximum duration reduction effective in IL currently.NA: not available. Due to a violation of the "nonreduction" rule (under P.L. 111-205, as amended), the EUC08 agreement between North Carolina and the Secretary of the U.S. Department of Labor was terminated. All tiers of EUC08 ended in North Carolina as of June 29, 2013.
The adjusted maximum benefit durations listed in the table for EUC08 and EB (and the maximum duration from all programs, which had previously been 93 weeks) apply to beneficiaries who file an initial claim for UC benefits after the effective date for adjusted UC durations. Individuals who received or are receiving UC benefits prior to the effective date for the state reduction in maximum UC benefits maintain the previous, unreduced UC, EUC08, and EB benefit durations. The EUC08 benefit duration formulas provided in this table were effective prior to EUC08 expiration. For more details, see CRS Report R42444, Emergency Unemployment
Compensation (EUC08):
Current Status of Benefits, by Julie M. Whittaker and Katelin P. Isaacs.
Under current law, the authorization for the EUC08 program expires the week ending on or before January 1, 2014. Consequently, EUC08 benefits are available through
December 28, 2013 (December 29, 2013 for New York).
CRS-13
UI: Consequences of Changes in State Unemployment Compensation Laws
Status of Benefits Prior to Expiration, by [author name scrubbed] and [author name scrubbed].
States with Reduced Weekly Benefit Amounts
P.L. 110-252, as amended,
includes a “nonreduction”included a "nonreduction" rule that
makesmade the availability of federally
financed EUC08 benefits
(when authorized) contingent on not actively changing the state
’'s method of calculation
for UC benefits, if
it would decreasethe method would have decreased weekly benefit amounts. This
“nonreduction” rule is a
"nonreduction" rule was a condition of the EUC08 federal-state agreement
prior to EUC08 expiration. In general, states
arewere not permitted to pay an
average weekly UC benefit amount that is less than what would have been paid under state law
prior to what was in effect as of June 2, 2010, and still be able to pay EUC08 benefits.
2624 However,
states
maycould reduce weekly benefits if that reduction happens automatically in certain
circumstances as required by a state law that was in place before the enactment of P.L. 111-5. Any
reduction to the UC weekly benefit amount also translates into reduced EUC08
(when authorized) and EB weekly
benefit amounts.
Prior to P.L. 110-252, 36 states had enacted state laws that calculate the maximum weekly UC
benefit via
automaticautomatic adjustments based on the average weekly wage in a state.
2725 Therefore, if the
average weekly wage declines in these states, they may experience automatic reductions in UC
average weekly benefit amount, which are permitted under the
“nonreduction”"nonreduction" rule. For instance,
in 2011, New Jersey and Oklahoma appear to have met these conditions and to have experienced
automatic reductions in their state UC weekly benefit amount. Similarly, in 2012, Hawaii also
seems to have met the necessary conditions to automatically reduce the state UC weekly benefit
amount.
28
26
P.L. 112-96 provided a specific exception to this UC
“nonreduction”"nonreduction" rule in the case of state
legislation that was enacted before March 1, 2012. States that made changes to the regular UC
benefit amount prior to March 1, 2012,
arewere not subject to the
“nonreduction” rule.
"nonreduction" rule.
In February 2013, North Carolina enacted legislation that
includesincluded a provision to actively reduce
UC weekly benefit amounts in the state. Effective on or after July 1, 2013, this state law provision
violated the
“nonreduction” rule and, therefore, terminated the EUC08 agreement between North
26
The current “nonreduction” rule was put into place when P.L. 111-205 amended P.L. 110-252. There was a similar,
but programmatically distinct “nonreduction” rule in P.L. 111-5, as amended, which prevented states from actively
changing the method of calculation of the UC weekly benefit amount to pay UC benefit amounts less than what would
have been paid under state law prior to December 31, 2008. No states acted to decrease UC benefit amounts between
December 31, 2008, and June 2, 2010, when the federal authorization for this earlier “nonreduction” rule expired.
27
The 36 states that calculate benefit amounts using automatic adjustments under prior state law are Arkansas,
Colorado, Connecticut, District of Columbia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine,
Massachusetts, Minnesota, Montana, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Ohio,
Oklahoma Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont,
Virgin Islands, Washington, West Virginia, Wisconsin, and Wyoming.
These 36 states could experience reductions in UC weekly benefit amounts under the “nonreduction” rule if (1) the
average weekly wages in states declined and the corresponding methods of calculation formula resulted in a benefit
decrease (for specific information regarding these state-specific methods of benefit calculation, see DOL’s
“Comparison of State Unemployment Laws, 2013,” Chapter 3: Monetary Eligibility, Table 3.6, pp. 13-15, available at
http://www.workforcesecurity.doleta.gov/unemploy/pdf/uilawcompar/2013/monetary.pdf) and (2) the state did not
otherwise prevent this benefit amount reduction through enactment of new state legislation.
28
See DOL’s “Significant Provisions of State UI Laws,” available at http://www.workforcesecurity.doleta.gov/
unemploy/statelaws.asp.
Congressional Research Service
14
UI: Consequences of Changes in State Unemployment Compensation Laws
Carolina and the Secretary of the U.S. Department of Labor. All tiers of EUC08 ended in North
Carolina as of June 29, 2013.29
Any state UC benefit reductions also reduce weekly amounts for EUC08 and EB benefits, which
are paid out in the same amount. Only individuals filing new state UC claims after the effective
date for reduced UC durations, however, would experience reductions in UC, EUC08, or EB
benefits.
State Law Enactment of EB Trigger Options
The EB program is active (“triggered on”) and pays unemployment benefits when a state’s
insured unemployment rate (IUR)30 or total unemployment rate (TUR)31 reaches certain levels.
All states must pay up to 13 weeks of EB if the IUR for the previous 13 weeks is at least 5% and
is 120% of the average of the rates for the same 13-week period in each of the 2 previous years (a
2-year lookback). There are two other optional thresholds that states may choose. (States may
choose one, two, or none.) If the state has chosen a given option, they would provide the
following:
•
Option 1: an additional 13 weeks of benefits if the state’s IUR is at least 6%,
regardless of previous years’ averages.
•
Option 2: an additional 13 weeks of benefits if the state’s TUR is at least 6.5%
and is at least 110% of the state’s average TUR for the same 13 weeks in either of
the previous two years; an additional 20 weeks of benefits if the TUR is at least
8% and is at least 110% of the state’s average TUR for the same 13 weeks in
either of the previous two years.
In addition to the optional EB triggers themselves, P.L. 111-312 (signed December 17, 2010)
made technical changes to certain triggers in the EB program. P.L. 111-312, as amended, allows
states to temporarily use lookback calculations based on three years of unemployment rate data
(rather than the current lookback of two years of data) as part of their mandatory IUR and
optional TUR triggers if states would otherwise trigger off or not be on a period of EB benefits.
Using a two-year versus a three-year EB trigger lookback is an important adjustment because
some states are likely to trigger off their EB periods in the near future despite high, sustained—
but not increasing—unemployment rates.
29
See U.S. Department of Labor, EUC08 Trigger Notice No. 2013-24, effective June 30, 2013,
http://www.workforcesecurity.doleta.gov/unemploy/euc_trigger/2013/euc_063013.html; and North Carolina
Department of Commerce, Division of Employment Security, “Unemployment Insurance Law Changes—Claimants
Questions and Answers,” http://www.ncesc1.com/individual/2013LawChangeQA.asp.
30
The IUR is the ratio of UC claimants divided by individuals in UC-covered jobs. The IUR excludes several important
groups: self-employed workers, unpaid family workers, workers in certain not-for-profit organizations, and several
other, primarily seasonal, categories of workers. In addition to those unemployed workers whose last jobs were in the
excluded employment, the insured unemployed rate excludes the following: those who have exhausted their UC
benefits (even if they receive EB or EUC08 benefits); new entrants or reentrants to the labor force; disqualified workers
whose unemployment is considered to have resulted from their own actions rather than from economic conditions; and,
eligible unemployed persons who do not file for benefits.
31
The TUR is the ratio of unemployed workers to all workers (employed and unemployed) in the labor market. The
TUR is essentially a weekly version of the unemployment rate published by the Bureau of Labor Statistics and based
on data from the BLS’ monthly Current Population Survey.
Congressional Research Service
15
UI: Consequences of Changes in State Unemployment Compensation Laws
For states to implement EB trigger lookback changes, each state had to individually opt to amend
its state UC laws. These state law changes must be written in such a way that if the two-year
lookback has the effect that the state would have an active EB program, no action would be taken.
But if a two-year lookback is not effective as part of an EB trigger and the state is not triggered
on to an EB period, then the state would be able to use a three-year lookback. This temporary
option to use three-year EB trigger lookbacks expires the week on or before December 31, 2013.
Currently, 11 states have adopted the optional TUR EB trigger (i.e., Option 2 above) into
permanent state law:
•
Alaska, Connecticut, Kansas, Minnesota, New Hampshire, New Jersey, North
Carolina, Oregon, Rhode Island, Vermont, and Washington
In addition, 28 states have temporarily adopted the TUR trigger into state law, linking the
expiration of this optional EB trigger to the expiration of the 100% federal financing of EB,
which is currently authorized through December 31, 2013 (under P.L. 112-240):32
•
Alabama, Arizona, California, Colorado, Delaware, District of Columbia,
Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Maine, Maryland,
Massachusetts, Michigan, Missouri, Nevada, New Mexico, New York, Ohio,
Pennsylvania, South Carolina, Tennessee, Texas, Virginia, West Virginia, and
Wisconsin
As of October 27, 2013, there are 31 states that have enacted a three-year EB trigger lookback
option (as temporarily authorized until the week ending on or before December 31, 2013, under
P.L. 111-312, as amended most recently by P.L. 112-240):
•
Alabama, California, Colorado, Connecticut, Delaware, District of Columbia,
Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine, Maryland,
Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New York,
North Carolina, Ohio, Oregon, Rhode Island, South Carolina, Tennessee, Texas,
West Virginia, and Wisconsin
With few exceptions, only states that enacted the TUR trigger (in either permanent or temporary
law) and also enacted the temporary three-year lookback had an active EB program paying
benefits throughout 2011 and 2012. As of the week of October 27, 2013, however, no state meets
the EB trigger criteria—either under “Option 1” or “Option 2”—to be able to pay EB benefits.
Future increases in state unemployment rates and/or a reversal of the current trend of decreasing
unemployment rates would be required in order to trigger on EB based on the TUR trigger and
lookback requirement.
Table 3 compiles enactment information for all three EB trigger options described above by state.
32
Under permanent law (P.L. 91-373), EB benefits are funded half (50%) by the federal government and half (50%) by
states. The 2009 stimulus package (P.L. 111-5), as amended, temporarily changes the financing of EB benefits to be
100% federal funding until December 31, 2013.
Congressional Research Service
16
UI: Consequences of Changes in State Unemployment Compensation Laws
Table 3. Extended Benefit (EB) Trigger Components Enacted by States
State
Permanent TUR
Trigger
Alabama
Alaska
Temporary TUR
Trigger
Three-Year Lookback
X
X
X
Arizona
X
Arkansas
California
X
X
Colorado
X
X
Connecticut
X
X
Delaware
X
X
District of Columbia
X
X
Florida
X
X
Georgia
X
X
Idaho
X
X
Illinois
X
X
Indiana
X
X
Hawaii
Iowa
Kansas
X
Kentucky
X
X
X
Maine
X
X
Maryland
X
X
Massachusetts
X
X
Michigan
X
X
Louisiana
Minnesota
X
X
Mississippi
Missouri
X
X
X
X
New Mexico
X
X
New York
X
X
Montana
Nebraska
Nevada
New Hampshire
X
New Jersey
X
North Carolina
X
X
North Dakota
Congressional Research Service
17
UI: Consequences of Changes in State Unemployment Compensation Laws
State
Permanent TUR
Trigger
Ohio
Temporary TUR
Trigger
Three-Year Lookback
X
X
Oklahoma
Oregon
X
Pennsylvania
X
X
Puerto Rico
Rhode Island
X
South Carolina
X
X
X
Tennessee
X
X
Texas
X
X
South Dakota
Utah
Vermont
X
Virgin Islands
Virginia
Washington
X
X
West Virginia
X
X
Wisconsin
X
X
28
31
Wyoming
Total Number of
States with EB
Trigger Component
11
Source: Compiled by Congressional Research Service based on U.S. Department of Labor, Extended Benefit
Trigger Notice No. 2013-41, effective October 27, 2013, http://www.workforcesecurity.doleta.gov/
unemploy/trigger/2013/trig_102713.html.
Author Contact Information
Katelin P. Isaacs
Analyst in Income Security
kisaacs@crs.loc.gov, 7-7355
Congressional Research Service
18
"nonreduction" rule and, therefore, terminated the EUC08 agreement between North Carolina and the Secretary of the U.S. Department of Labor. All tiers of EUC08 ended in North Carolina as of June 29, 2013.27 With the expiration of the EUC08 program as of the week ending on or before January 1, 2014 (i.e., December 28, 2013; or December 29, 2013, in New York State), the "nonreduction" rule is no longer effective.
Any state UC benefit reductions also reduce weekly amounts for EB benefits (and EUC08 benefits when authorized), which are paid out in the same amount. Only individuals filing new state UC claims after the effective date for reduced UC durations, however, would experience reductions in UC, EUC08 (when authorized), or EB benefits.
Footnotes
1.
|
Or, in the case of the states described in the report section on "State Law Changes to UC Benefit Duration," UC currently pays fewer than up to 26 weeks.
|
2.
|
See report section on "Calculation of Benefit Duration for EB Payable Periods" for the calculation of EB benefit durations in states that have reduced regular UC benefit duration.
|
3.
|
See report section on "Calculation of Benefit Duration for EUC08 Tiers" for the calculation of EUC08 benefit durations prior to EUC08 expiration in states with reduced regular UC benefit durations. In states without UC duration reductions up to 47 weeks of total EUC08 benefits was generally available prior to EUC08 expiration in certain states with high unemployment. For more details on the structure and availability of EUC08 benefits, see CRS Report R42444, Emergency Unemployment Compensation (EUC08): Status of Benefits Prior to Expiration, by [author name scrubbed] and [author name scrubbed].
|
4.
|
The District of Columbia, Puerto Rico, and the Virgin Islands are considered to be states in UC law.
|
5.
|
Puerto Rico is an exception to this pattern of state convergence on 26 weeks as the maximum UC benefit duration in the 1960s. When it originally entered the federal-state UC system in 1961, Puerto Rico provided a lower maximum UC benefit duration (i.e., up to 16 weeks in 1961 and then up to 20 weeks for most of the 1970-1990 period). Puerto Rico did not provide up to 26 weeks of UC benefits until 1991. For more information on state UC benefit duration, including changes over time, see DOL's "Significant Provisions of State UI Laws," available at http://www.workforcesecurity.doleta.gov/unemploy/statelaws.asp#sigprouilaws.
|
6.
|
The other programs became effective in 1958, 1961, 1972, 1975, 1982, 1991, and 2002. See CRS Report RL34340, Extending Unemployment Compensation Benefits During Recessions, by [author name scrubbed] and [author name scrubbed].
|
7.
|
The EUC08 program has been amended 11 times (P.L. 110-449, P.L. 111-5, P.L. 111-92, P.L. 111-118, P.L. 111-144, P.L. 111-157, P.L. 111-205, P.L. 111-312, P.L. 112-78, P.L. 112-96, and P.L. 112-240). For more details on EUC08, including its legislative history, see CRS Report R42444, Emergency Unemployment Compensation (EUC08): Status of Benefits Prior to Expiration, by [author name scrubbed] and [author name scrubbed].
|
8.
|
Effective on or after July 1, 2013, EUC08 benefits were no longer available in North Carolina. North Carolina enacted legislation in February 2013 that included a provision to actively reduce UC weekly benefit amounts in the state. This state law provision violated the "nonreduction" rule and, therefore, terminated the EUC08 agreement between North Carolina and the Secretary of the U.S. Department of Labor.
|
9.
|
See previous footnote. North Carolina terminated its EUC08 agreement on July 1, 2013.
|
10.
|
The TUR (the total unemployment rate) is the seasonally-adjusted, three-month average of the ratio of unemployed workers to all workers (employed and unemployed) in the labor market.
|
11.
|
The IUR (the insured unemployment rate) is the ratio of UC claimants divided by individuals in UC-covered jobs.
|
12.
|
DOL's weekly trigger notices for the EB program are available online at http://www.workforcesecurity.doleta.gov/unemploy/claims_arch.asp.
|
13.
|
Alaska was the only state to pay EB benefits first when this option was available under P.L. 110-252, as amended.
|
14.
|
This temporary 100% federal financing of EB benefits did not include "non-sharable" benefits (generally, these are former state and local employees' EB benefits).
|
15.
|
Ibid.
|
16.
|
For more details on revenues and expenditures associated with UC benefits, see CRS Report RL33362, Unemployment Insurance: Programs and Benefits, by [author name scrubbed] and [author name scrubbed].
|
17.
|
For more details on federal loans to states to pay UC benefits, see CRS Report RS22954, The Unemployment Trust Fund (UTF): State Insolvency and Federal Loans to States, by [author name scrubbed].
|
18.
|
For a fuller discussion of this issue, including details on states that have been able to reduce weekly UC benefit amounts, see the report section on "States with Reduced Weekly Benefit Amounts."
|
19.
|
Prior to program expiration, the duration of benefits for each tier of EUC08 (as well as any EB payable period) was set through calculations based on the lesser of (1) the state benefit criteria, which is a set percentage of the duration of regular UC benefits (e.g., 54% of the individual's total regular UC duration in a benefit year for Tier I of EUC08 prior to expiration) or (2) the maximum weekly amount criteria, which is the multiple of an individual's average weekly benefit amount under the UC program (e.g., 13 times an individual's average weekly benefit amount in a benefit year for Tier I of EUC08 prior to expiration). In the event of state reduction in UC benefit durations, the former calculation—the state benefit criteria—would be lower and, thus, applicable. Therefore, this report's discussion of the benefit duration calculation for all tiers of EUC08 (when authorized) and all payable periods of EB focuses on this state benefit criteria formula in its explanations and illustrations of duration calculations.
|
20.
|
These EUC08 benefit duration formulas were effective for EUC08 tiers prior to expiration. The structure and availability of EUC08 tiers changed several times since the initial EUC08 program authorization. For more details on this legislative history, see CRS Report R42444, Emergency Unemployment Compensation (EUC08): Status of Benefits Prior to Expiration, by [author name scrubbed] and [author name scrubbed].
|
21.
|
The average weekly benefit amount was $315—or roughly $300—across all states as of July 2014 (DOL). Michigan, Missouri, and South Carolina have enacted state laws to reduce their maximum UC benefit duration to 20 weeks.
|
22.
|
See footnote 19 for more technical details.
|
23.
|
See footnote 21 for rationale behind these data points.
|
24.
|
This "nonreduction" rule was put into place when P.L. 111-205 amended P.L. 110-252. There was a similar, but programmatically distinct "nonreduction" rule in P.L. 111-5, as amended, which prevented states from actively changing the method of calculation of the UC weekly benefit amount to pay UC benefit amounts less than what would have been paid under state law prior to December 31, 2008. No states acted to decrease UC benefit amounts between December 31, 2008, and June 2, 2010, when the federal authorization for this earlier "nonreduction" rule expired.
|
25.
|
The 36 states that calculate benefit amounts using automatic adjustments under prior state law are Arkansas, Colorado, Connecticut, District of Columbia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Montana, Nevada, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virgin Islands, Washington, West Virginia, Wisconsin, and Wyoming.
These 36 states could experience reductions in UC weekly benefit amounts under the "nonreduction" rule if (1) the average weekly wages in states declined and the corresponding methods of calculation formula resulted in a benefit decrease (for specific information regarding these state-specific methods of benefit calculation, see DOL's "Comparison of State Unemployment Laws, 2013," Chapter 3: Monetary Eligibility, Table 3.6, pp. 13-15, available at http://www.workforcesecurity.doleta.gov/unemploy/pdf/uilawcompar/2013/monetary.pdf) and (2) the state did not otherwise prevent this benefit amount reduction through enactment of new state legislation.
|
26.
|
See DOL's "Significant Provisions of State UI Laws," available at http://www.workforcesecurity.doleta.gov/unemploy/statelaws.asp.
|
27.
|
See U.S. Department of Labor, EUC08 Trigger Notice No. 2013-24, effective June 30, 2013, http://www.workforcesecurity.doleta.gov/unemploy/euc_trigger/2013/euc_063013.html; and North Carolina Department of Commerce, Division of Employment Security, "Unemployment Insurance Law Changes—Claimants Questions and Answers," http://www.ncesc1.com/individual/2013LawChangeQA.asp.
|