Unemployment Insurance: Consequences of
Changes in State Unemployment
Compensation Laws
Katelin P. Isaacs
Analyst in Income Security
August 5, 2011
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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 maximum UC weekly benefit amount; and
(3) the enactment into state law of two trigger options for the Extended Benefit (EB) program.
In 2011, several states 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, Missouri, and South Carolina have made state UC law
changes that are already in effect. Michigan, Illinois, and Florida legislated state law changes that
will be effective in January 2012.
Changes in UC benefit duration have consequences for the duration of federal unemployment
benefits that may be available to unemployed workers. State UC benefit duration is an underlying
factor in the calculation of duration for additional federal unemployment benefits. Thus, the
reduction of the maximum duration of regular UC benefits 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 prohibited from actively changing their methods of calculation for UC
benefits if it would decrease weekly benefit amounts (under P.L. 111-205, as amended). Some
states, however, make automatic adjustments to weekly benefit amounts under existing state law.
Consequently, if 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. Two states—New Jersey and Oklahoma—have recently experienced
this type of reduction in their weekly UC benefit amounts. Such a benefit reduction also translates
into reduced EUC08 and EB weekly benefit amounts as they are based upon the weekly benefit
amount calculated by the regular state UC benefits.
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 and P.L. 111-5, as
amended)—that states may opt to enact under their state UC laws. Currently, 12 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 26 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-three states have adopted a
three-year lookback for this optional TUR trigger (temporarily authorized under P.L. 111-312) to
continue to meet the trigger criteria and continue to pay EB benefits. In general, only states who
have enacted at least one of these EB trigger options (i.e., the TUR trigger or the three-year
lookback) are currently able to pay EB benefits.
Overall, these three 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.

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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
States with UC Benefit Duration Changes Currently in Effect ................................................. 6
States with UC Benefit Duration Changes in Effect in January 2012 ....................................... 6
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.................................................... 8
States with Reduced Maximum Weekly Benefit Amounts ............................................................ 12
State Law Enactment of EB Trigger Options ................................................................................ 13

Tables
Table 1. States with Unemployment Compensation (UC) Law Changes in 2011 That
Decrease Benefit Duration............................................................................................................ 5
Table 2. Adjusted Maximum EUC08 and EB Benefit Duration Resulting from Changes to
State Maximum UC Benefit Duration ......................................................................................... 9
Table 3. Extended Benefit (EB) Trigger Components Enacted by States...................................... 14


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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 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 maximum UC weekly benefit amount.
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 January 4, 2012, 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) for up to 53 weeks by the temporarily authorized Emergency
Unemployment Compensation (EUC08) program;2 and (2) for up to 13 or 20 weeks by the EB
program 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
on the financing of each type of unemployment benefit, see CRS Report RL33362,
Unemployment Insurance: Programs and Benefits, by Katelin P. Isaacs and Julie M. Whittaker.

1 Or, in the case of the six states described in the report section on “State Law Changes to UC Benefit Duration,” UC
pays fewer than up to 26 weeks—either currently or beginning in January 2012.
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.
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.
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Consequences of Changes in State Unemployment Compensation Laws

Unemployment Compensation Program
UC, authorized by the Social Security Act of 1935 (SSA; P.L. 74-271), 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 in states had been paying
unemployment benefits for up to a maximum duration of at least 26 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 In 2010, the only exceptions to the 26 week UC benefit
maximum were states that provided more than 26 weeks of UC benefits (Montana: up to 28
weeks; Massachusetts: up to 30 weeks).
Emergency Unemployment Compensation Program
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. This was
the eighth time Congress had created a federal temporary program to extend the number of
potential weeks of unemployment compensation available to eligible, unemployed individuals
during an economic slowdown.6 State UC agencies administer the EUC08 benefit along with
regular UC benefits. The authorization for this program continues until January 3, 2012.7 EUC08
benefits are currently financed through general revenue from the U.S. Treasury.

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 Julie M. Whittaker and Katelin P. Isaacs.
7 The EUC08 program has been amended eight 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, and P.L. 111-312). For more details on EUC08, including its legislative history, see
CRS Report RS22915, Temporary Extension of Unemployment Benefits: Emergency Unemployment Compensation
(EUC08), by Katelin P. Isaacs and Julie M. Whittaker.
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Consequences of Changes in State Unemployment Compensation Laws

The EUC08 benefit amount is equal to the eligible individual’s weekly regular UC benefits. There
are four tiers of EUC08 benefits, which are all temporary and scheduled to expire the week
ending on or before January 3, 2012. There will be no new entrants into the EUC08 program after
December 31, 2011.8 Those unemployed individuals who had qualified for a tier I, II, III, or IV
EUC08 benefit by December 31, 2011, may be “grandfathered” for their remaining weeks of
eligibility for only that specific tier, and would continue to receive payments for the number of
weeks they were deemed eligible within that tier. No EUC08 benefits—regardless of tier—are
payable for any week after June 9, 2012.
EUC08 benefits are paid out through four different tiers. The duration of EUC08 benefits from
each tier is based on the duration of regular UC benefits. The consequences of recent state law
changes to UC duration is discussed below. But, currently, for most states (i.e., those states with a
UC maximum duration of up to 26 weeks), the duration of EUC08 benefit tiers is as follows:
• Tier I of the EUC08 program provides up to 20 additional weeks of
unemployment benefits to certain workers who have exhausted their rights to
regular UC benefits.
• Tier II provides up to an additional 14 weeks of benefits (for a total of 34 weeks
of EUC08 benefits for all unemployed workers).
• Tier III is available in states with a total unemployment rate (TUR)9 of at least
6% and provides up to an additional 13 weeks of EUC08 benefits (for a total of
47 weeks of EUC08 benefits in these states).
• Tier IV is available in states with a TUR of at least 8.5% and provides up to an
additional six weeks of EUC08 benefits (for a total of 53 weeks of EUC08
benefits in theses states).10
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 insured unemployment rate
(IUR)11 or TUR12 reaches certain levels.13 For full details on state triggers for the EB program, see
CRS Report RL33362, Unemployment Insurance: Programs and Benefits, by Katelin P. Isaacs
and Julie M. Whittaker.
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

8 January 1, 2012, for New York state.
9 The TUR (the total unemployment rate) is the ratio of unemployed workers to all workers (employed and
unemployed) in the labor market.
10 Each week the U.S. Department of Labor (DOL) posts trigger notices for tiers III and IV of the EUC08 program,
which are available online, at http://www.workforcesecurity.doleta.gov/unemploy/claims_arch.asp.
11 The IUR (the insured unemployment rate) is the ratio of UC claimants divided by individuals in UC-covered jobs.
12 The TUR (the total unemployment rate) is the ratio of unemployed workers to all workers (employed and
unemployed) in the labor market.
13 DOL’s weekly trigger notices for the EB program are available online at http://www.workforcesecurity.doleta.gov/
unemploy/claims_arch.asp.
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Consequences of Changes in State Unemployment Compensation Laws

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. P.L. 110-252 allows states to determine which extended unemployment benefit—
EUC08 or EB—is paid first. States balance the decision of which benefit to pay first by weighing
the potential cost savings to the state against the potential loss of unemployment benefits for
unemployed individuals in the state. Currently, all states except Alaska are paying EUC08
benefits before EB (although states have the discretion to adjust this arrangement).
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 January 4, 2012.14 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 place15, 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.16 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.
As a result of the most recent recession and its accompanying prolonged and high unemployment,
states have paid out large amounts of UC benefits ($75.0 billion in FY2009 and $63.0 billion in
FY2010 versus $30.2 billion in FY2006 and $31.4 billion in FY2007).17 This increase in state
expenditures on UC benefits has also led to large outstanding federal loans in many states18 as
well as increased employer tax rates in most states.

14 This temporary 100% federal financing of EB benefits does not include “non-sharable” benefits (generally, these are
former state and local employees’ EB benefits).
15 For details on these EB triggers, see report section on “State Law Enactment of EB Trigger Options.”
16 Ibid.
17 For more details on revenues and expenditures associated with UC benefits, see CRS Report RL33362,
Unemployment Insurance: Programs and Benefits, by Katelin P. Isaacs and Julie M. Whittaker.
18 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.
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Consequences of Changes in State Unemployment Compensation Laws

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
law, however, most states are temporarily prohibited from reducing UC benefit amounts through
changes to benefit calculation19 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—each tier of
the EUC08 program and any EB periods—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.
Currently, six states have acted to decrease their maximum UC benefit durations. As elaborated
below, three of these states—Arkansas, Missouri, and South Carolina—adopted UC benefit
duration reductions that are currently in effect. The three other states—Michigan, Illinois, and
Florida—have effective dates for their UC benefit duration reductions in January 2012.20
Table 1 provides full details on these state changes to UC benefit duration.
Table 1. States with Unemployment Compensation (UC) Law Changes in 2011 That
Decrease Benefit Duration
Effective Date of New
State Bill or Act
Prior Maximum
New Maximum
Maximum UC
State
Number
UC Duration
UC Duration
Duration
Arkansas
Act 861, 88th
26 weeks
25 weeks
Currently effective
General Assembly
[Effective upon enactment
(March 30, 2011)]
Missouri
House Bill No. 163,
26 weeks
20 weeks
Currently effective
96th General
[Effective upon enactment
Assembly
(April 13, 2011)]
Michigan
Act No. 14, Public
26 weeks
20 weeks
Effective for individuals
Acts of 2011
filing an initial claim for
UC benefits on or after
January 15, 2012
Illinois
Public Act 097-0001,
26 weeks
25 weeks
Effective January 1, 2012
97th General
Assembly

19 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 Maximum Weekly Benefit Amounts.”
20 At least part of the significance of a January 2012 effective date is the expiration of two key federal unemployment
insurance program expirations: (1) the expiration of the authorization of the EUC08 program (week ending on or before
January 3, 2012) and (2) the expiration of the 100% federal financing of the EB program, which is authorized through
January 4, 2012.
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Consequences of Changes in State Unemployment Compensation Laws

Effective Date of New
State Bill or Act
Prior Maximum
New Maximum
Maximum UC
State
Number
UC Duration
UC Duration
Duration
Florida
Chapter 2011-235,
26 weeks
Variable duration
Effective January 1, 2012
Laws of Florida
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%
South Carolina
Act No. 63, South
26 weeks
20 weeks
Currently effective
Carolina General
[Effective upon enactment
Assembly, 119th
(June 14, 2011)]
Session
Source: Compiled by the Congressional Research Service.
States with UC Benefit Duration Changes Currently in Effect
• Arkansas decreased its state UC maximum duration from 26 weeks to 25 weeks.
This state UC law change is currently effective.
• Missouri decreased its UC maximum duration from 26 weeks to 20, effective
currently.
• South Carolina also decreased its UC maximum duration from 26 weeks to 20,
effective currently.
States with UC Benefit Duration Changes in Effect in January 2012
• 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%.21 This benefit reduction is effective January 1, 2012.
• Illinois decreased its UC maximum duration from 26 weeks to 25 weeks,
effective January 1, 2012.

21 The three-month average, seasonally adjusted unemployment rate for Florida in May 2011 is 11.1%, as determined
by the U.S. Department of Labor.
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Consequences of Changes in State Unemployment Compensation Laws

• Michigan decreased its UC maximum duration from 26 weeks to 20 weeks. This
change is effective for individuals filing an initial claim for UC benefits on or
after January 15, 2012.
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.22 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.
Specific formulas for the duration of each tier of EUC08 are presented below. 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: 80% of the duration of an 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
• 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: 50% of the duration of an individual’s total regular UC
benefits in benefit year

22 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., 80% of the individual’s total regular UC duration in a benefit year for Tier I of EUC08) 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., 20 times an individual’s average weekly benefit amount in a benefit year for Tier I of EUC08). 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.
23 The average weekly benefit amount is roughly $300 across all states for April 2011 (DOL). Michigan, Missouri, and
South Carolina have enacted state laws to reduce their maximum UC benefit duration to 20 weeks.
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• 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
• Tier IV of EUC08
• Duration formula: 24% 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)
• 24% of 20 weeks of UC=4.8 weeks; up to 4 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 reduction in regular UC benefit
duration are provided in Table 2.
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 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)25 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’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 reduction
in regular UC benefit duration.


24 See footnote 22 for more technical details.
25 See footnote 23 for rationale behind these data points.
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Consequences of Changes in State Unemployment Compensation Laws

Table 2. Adjusted Maximum EUC08 and EB Benefit Duration Resulting from Changes to State Maximum
UC Benefit Duration
Adjusted
Adjusted
Adjusted
Maximum EB
Effective
Benefit
Adjusted
Adjusted
Adjusted
Adjusted
Adjusted
Maximum EB
High
Date for
Duration
Maximum
Maximum
Maximum
Maximum
Maximum
Unemployment Unemployment
Adjusted
Maximum
UC
EUC08 Tier EUC08 Tier EUC08 Tier EUC08 Tier
Period
Period
UC
from All
State
Duration
I Duration
II Duration
III Duration
IV Duration
Duration
Duration
Durations
Programs
Arkansas
25 weeks
20 weeks
13 weeks and
12 weeks and
6 weeks
12 weeks and 1
20 weeks
Currently
97 weeks
1 week at
1 week at
week at
effective
0.5xWBA
0.5xWBA
0.5xWBA
Missouri
20 weeks
16 weeks
10 weeks and
10 weeks
4 weeks and
10 weeks
16 weeks
Currently
77 weeks and
1 week at
1 week at
effective
1 week at
0.8xWBA
0.8xWBA
0.6xWBA
Michigan
20 weeks
16 weeks
10 weeks and
10 weeks
4 weeks and
10 weeks
16 weeks
Effective for
77 weeks and
1 week at
1 week at
individuals
1 week at
0.8xWBA
0.8xWBA
filing initial
0.6xWBA
claims for UC
benefits on or
after 1/15/12
Illinois
25 weeks
20 weeks
13 weeks and
12 weeks and
6 weeks
12 weeks and 1
20 weeks
Effective
97 weeks
1 week at
1 week at
week at
1/1/12
0.5xWBA
0.5xWBA
0.5xWBA
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Consequences of Changes in State Unemployment Compensation Laws

Adjusted
Adjusted
Adjusted
Maximum EB
Effective
Benefit
Adjusted
Adjusted
Adjusted
Adjusted
Adjusted
Maximum EB
High
Date for
Duration
Maximum
Maximum
Maximum
Maximum
Maximum
Unemployment Unemployment
Adjusted
Maximum
UC
EUC08 Tier EUC08 Tier EUC08 Tier EUC08 Tier
Period
Period
UC
from All
State
Duration
I Duration
II Duration
III Duration
IV Duration
Duration
Duration
Durations
Programs
Florida
Variable
With 12
With 12
With 12
With 12
With 12 week
With 12 week
Effective
With 12
duration based week UC
week UC
week UC
week UC
UC duration: 6
UC duration: 9
1/1/12
week UC
on state
duration: 9
duration: 6
duration: 6
duration: 2
weeks at WBA
weeks at WBA
duration: 46
unemployment weeks and 1
weeks and 1
weeks
weeks and 1
and 1 week at
weeks and 1
rate:
week at
week at
week at

0.6xWBA
week at
0.6xWBA
0.48xWBA

0.88xWBA
WBAx0.56
(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 23
With 23
With 23
With 23
With 23
(3) 23 weeks if
With 23 week
week UC
week UC
week UC
week UC
With 23 week
week UC
state
UC duration: 11
duration: 18
duration: 12
duration: 11
duration: 5
UC duration: 18
duration: 89
unemployment
weeks at WBA
weeks and 1
weeks and 1
weeks and 1
weeks and 1
weeks at WBA
weeks and I
rate is at least
and 1 week at
week at
week at
week at
week at
and 1 week at
week at
10.5%
0.5xWBA
0.4xWBA
0.42xWBA
0.5xWBA
0.52xWBA
0.4xWBA
WBAx.0.24
South
20 weeks
16 weeks
10 weeks and
10 weeks
4 weeks and
10 weeks
16 weeks
Currently
77 weeks and
Carolina
1 week at
1 week at
effective
1 week at
0.8xWBA
0.8xWBA
0.6xWBA
Source: Compiled by Congressional Research Service.
Notes: WBA: weekly benefit amount. All weeks of benefits are paid out in terms of ful WBA unless a pro-rated WBA calculation is provided.
The adjusted maximum benefit durations listed in the table for EUC08 and EB (and the maximum duration from al programs, which had previously been 99 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.
CRS-10

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Consequences of Changes in State Unemployment Compensation Laws

Under current law, the authorization for the EUC08 program expires the week ending on or before January 3, 2012. Consequently, there will be no new entrants into any
tier of EUC08 after December 31, 2011 (January 1, 2012, in New York state). Individuals receiving EUC08 benefits prior to the program’s expiration may finish out their
current tier of EUC08 benefit only and may not enter another tier.
CRS-11

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Consequences of Changes in State Unemployment Compensation Laws

States with Reduced Maximum Weekly Benefit
Amounts
The Unemployment Compensation Extension Act of 2010 (P.L. 111-205), as amended,
temporarily prevents states from actively changing the method of calculation of the UC weekly
benefit amount in such a way as to decrease this average weekly benefit amount. This
“nonreduction” rule is a condition of the Emergency Unemployment Compensation (EUC08)
federal-state agreement, as amended by P.L. 111-205. States are 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, 2010.26 However, states may 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.
Thus, despite the “nonreduction” rule, two states—New Jersey and Oklahoma—have reduced the
maximum amount of their UC weekly benefits since the rule became law. The weekly benefit
reductions in these states do not violate the current federal prohibition as New Jersey and
Oklahoma are two of 36 states with prior state laws that calculate the maximum weekly UC
benefit via automatic adjustments based on the average weekly wage in a state.27
Because (1) the average weekly wage declined in both New Jersey and Oklahoma since the
“nonreduction” rule provision of P.L. 111-205 was enacted and (2) this UC benefit calculation
was already in state law, New Jersey and Oklahoma experienced the following UC benefit
decreases:
• New Jersey—decline in maximum weekly UC benefit from $600 as of July 1,
2010, to $598 as of January 1, 2011
• Oklahoma—decline in maximum weekly UC benefit from $430 as of July 1,
2010, to $358 as of January 1, 2011
These state UC benefit reductions also reduce weekly amounts for EUC08 and EB
benefits, which are paid out in the same amount.

26 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 other 34 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 Mexico, North Carolina, North Dakota, Ohio, Oregon,
Pennsylvania, Puerto Rico, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virgin Island,
Washington, West Virginia, Wisconsin, and Wyoming.
It is possible that these 34 states could also experience reductions in UC weekly benefit amounts similar to New Jersey
and Oklahoma 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,” Chapter 3: Monetary Eligibility, Table 3.6, pp. 13-14, available at
http://www.workforcesecurity.doleta.gov/unemploy/pdf/uilawcompar/2010/monetary.pdf) and (2) the state did not
otherwise prevent this benefit amount reduction through enactment of new state legislation.
Congressional Research Service
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Consequences of Changes in State Unemployment Compensation Laws

State Law Enactment of EB Trigger Options
The EB program is triggered and pays unemployment benefits when a state’s insured
unemployment rate (IUR)28 or total unemployment rate (TUR)29 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 two previous years (a two-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 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.
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, 2011.
With few exceptions, only states who have enacted the TUR trigger of these EB trigger options
(in either permanent or temporary law) and also have enacted the temporary three-year lookback
have an active EB program paying benefits.

28 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.
29 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
13

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Consequences of Changes in State Unemployment Compensation Laws

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, 27 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 January 4, 2012 (under P.L. 111-312):30,
• Alabama, Arizona, California, Colorado, Delaware, District of Columbia,
Florida, Georgia, Idaho, Illinois, Indiana, Kentucky, Maine, Massachusetts,
Michigan, Missouri, Nevada, New Mexico, New York, Ohio, Pennsylvania, South
Carolina, Tennessee, Texas, Virginia, West Virginia, and Wisconsin
As of August 7, 2011, there are 33 states that have enacted a three-year EB trigger lookback
option (as temporarily authorized under P.L. 111-312):31
• Alabama, California, Colorado, Connecticut, Delaware, District of Columbia,
Florida, Georgia, Idaho, Illinois, Indiana, Kansas, Kentucky, Maine,
Massachusetts, Michigan, Minnesota, Missouri, Nevada, New Jersey, New
Mexico, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island,
South Carolina, Tennessee, Texas, Washington, West Virginia, and Wisconsin
Table 3 compiles enactment information for all three EB trigger options described above by state.
Table 3. Extended Benefit (EB) Trigger Components Enacted by States
Permanent TUR
Temporary TUR
State
Trigger
Trigger
Three-Year Lookback
Alabama
X
X
Alaska X


Arizona
X

Arkansas


California
X
X
Colorado
X
X
Connecticut X X
Delaware
X
X
District of Columbia

X
X
Florida
X
X

30 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 January 4, 2012. Maryland has a temporary TUR trigger authorized under current state law,
but it does not go into effect until October 1, 2011. Therefore, Maryland is not counted in the list of 27 states with
effective, temporary TUR triggers.
31 Maryland also adopted a three-year lookback option, effective October 1, 2011. Since this three-year lookback is not
yet in effect, Maryland is not counted in the list of 33 states with active three-year lookback options.
Congressional Research Service
14

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Consequences of Changes in State Unemployment Compensation Laws

Permanent TUR
Temporary TUR
State
Trigger
Trigger Three-Year
Lookback
Georgia
X
X
Hawaii


Idaho
X
X
Illinois
X
X
Indiana
X
X
Iowa


Kansas X

X
Kentucky
X
X
Louisiana


Maine
X
X
Maryland
X

X
(effective 10/1/11)
(effective 10/1/11)
Massachusetts X X
Michigan
X
X
Minnesota X X
Mississippi
Missouri
X
X
Montana


Nebraska


Nevada
X
X
New Hampshire
X


New Jersey
X

X
New Mexico

X
X
New York

X
X
North Carolina
X

X
North Dakota



Ohio
X
X
Oklahoma
Oregon X

X
Pennsylvania X X
Puerto Rico



Rhode Island
X

X
South Carolina

X
X
South Dakota



Tennessee X
X
Texas
X
X
Utah


Congressional Research Service
15

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Consequences of Changes in State Unemployment Compensation Laws

Permanent TUR
Temporary TUR
State
Trigger
Trigger Three-Year
Lookback
Vermont X

Virgin Islands



Virginia
X

Washington X X
West Virginia

X
X
Wisconsin
X
X
Wyoming
Total Number of
11 27 33
States with EB
Trigger Component
Source: Compiled by Congressional Research Service based on U.S. Department of Labor, Extended Benefit
Trigger Notice No. 2011-30, effective August 7, 2011 (available at http://www.workforcesecurity.doleta.gov/
unemploy/trigger/2011/trig_080711.html).
Notes: Maryland has both a temporary TUR trigger and a three-year lookback option authorized under current
state law, but they do not go into effect until October 1, 2011. Therefore, Maryland is not counted in the list of
27 states with effective, temporary TUR triggers or in the list of 33 states with effective, three-year lookback
options.


Congressional Research Service
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