Changes to unemployment compensation benefits

Posted by marykeating on July 18, 2009 under Unemployment compensation | Be the First to Comment

Maryland’s unemployment compensation law was designed to tide over people who became involuntarily unemployed.  Until recently, the law applied only to formerly full-time employees, and had a limited time period of 20 weeks.  The original assumption, that an unemployed worker looking for work should be able to find a new position within a half year is no longer valid.

New legislation changed several aspects of the law, in an attempt to provide some relief from the economic crisis.  The original assumption, that an unemployed worker looking for work should be able to find a new position within a few months is no longer valid.  Claimants are now eligible to receive their benefits for 33 weeks.  The state maximum weekly benefit amount increased to $410, while federal stimulus money added $25 more per week to the benefits.  In addition, people receiving unemployment compensation during 2009 pay no taxes on the first $2,400 in benefits.

Part-time workers are now eligible for benefits.  Until recently, part-time workers were ignored in the unemployment compensation system.

The State Department of Labor, Licensing & Regulation has a good overview of the logistics of applying for benefits or registering as an employer, here.

An important revision to the unemployment law, effective June 1, 2009, eliminated the right of certain employees to receive both severance pay and unemployment benefits.  The former law provided that an employee whose job was abolished and whose severance package did not completely replace the salary and fringe benefits payable at the job could receive both the severance and the unemployment.  This provision was useful in negotiating severance packages; adding the provision that a job was abolished could help the employee earn more than the granted severance weeks, and also gave the employee a blame-free excuse for being unemployed.  This can be helpful in searching for new employment.  Now, severed employees are ineligible for unemployment compensation for the weeks for which severance is payable.