New Unemployment Bill to Provide Relief

Posted by marykeating on February 6, 2010 under Pending legislation, Unemployment compensation | Be the First to Comment

We get occasional glimpses of hope in the economic news, but the unemployment rate remains high.  The latest projection I heard projected unemployment remaining above ten percent all year.  To deal with the prolonged unemployment of so many workers, the government has extended the maximum weeks of unemployment benefits.  It also has increased the unemployment tax payable by employers.

This sets the stage for the classic clash of interests in Annapolis.  Some business interests are asking for a reduction of benefits, while others are urging higher weekly benefits and more weeks.  An emergency bill is pending this session, and has made it past the first stage.  According to the bill, some of the changes to the law are necessary to qualify for the federal stimulus funds.

One of the more employee friendly provisions changes the formula for calculating the weekly unemployment benefit, by looking at the most recent four quarters of pay rates.  This provision would help workers who had been earning increased amounts in their fields before becoming unemployed.

In addition, the law provides for extended benefits and training for unemployed workers who have been unemployed for an extended period, and are in a declining occupation, or were laid off in a permanent reduction in force.  Employers’s rating experience is not charged for unemployed individuals receiving the additional training benefits.