Posted by marykeating on May 7, 2010 under Economic situation, Unemployment compensation | 
Maryland just became the first state to be entitled to receive $126,750,124 from the United States Department of Labor for unemployment insurance modernization incentive funds. Maryland was the first state to amend the law to become entitled to these funds. The state can use the money for benefits, to administer the program, or add employment services to the unemployed.
The federal program gave an incentive to states to assist part-time workers, people just entering the workforce, and those seeking to upgrade skills. Rather than simply providing job lists and benefits, for example, the funds will help people adjust to changing economies. Though Baltimore has been classified as part of the rust belt for some time, other types of jobs are going overseas, and Marylanders with certain skills find that their old skills are not wanted on this continent any longer. New training programs will help people figure out what skills are still in demand, and how to get them.
In the short term, of course, the money is a boon to a nearly bankrupt fund. As employers know, the rate of unemployment contributions has grown enormously, and this grant from the federal government may at least stop future increases in the tax rate.
Posted by marykeating on July 30, 2009 under Unemployment compensation |
The federal government announced today that it was sending more relief to the states, in the form of supplements to their unemployment services.
Maryland will receive $1,019,462 to begin a Re-employment and Eligibility Assessment (REA) Initiative. The funding will pay for counseling, assessment, and crafting individual work-search plans for unemployed people whose industries may have dwindled or disappeared.
Posted by marykeating on July 18, 2009 under Unemployment compensation |
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assumption, that an unemployed worker looking for work should be able to find a new position within a half year is no longer valid.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assumption, that an unemployed worker looking for work should be able to find a new position within a few months is no longer valid.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.
