UNEMPLOYMENT COMPENSATION UP FOR CALIFORNIA EMPLOYEES
Have your unemployment benefits dried up? Are you buried under a mountain of debt? If that’s the case, the federal government may help to dig you out. On November 6, 2009, President Obama signed into law HR 3548 (PL 111-92), which provides for the temporary availability of additional Emergency Unemployment Compensation (EUC) to those unemployed workers whose benefits have expired or will expire before the end of the year. In states with unemployment over 8.5%, benefits will be extended by 14 weeks with the potential for an additional six weeks, for a total of 20 weeks.
According to the Bureau of Labor Statistics, the California unemployment rate in September 2009 was 12.2% and ranked the fourth highest in the nation; therefore, the new law will have a direct impact on the state. The California Employment Development Department (EDD) has estimated that 285,000 residents may be eligible for the new extension. Unfortunately, workers are not likely to see benefits for several weeks. The law is confusing and will be difficult for the state to implement.
One obstacle is the adjustment to the tiers of unemployment benefits. Prior to enactment of the new law, there were only two extensions available to qualified workers. Tier 1 provided for a maximum of 20 additional weeks of EUC in all states and Tier 2 offered an additional 13 weeks of EUC in states with an unemployment rate of more than 6% for 3 consecutive months.The new legislation bolstered Tier 2 and added Tiers 3 and 4. Tier 2 now provides up to 14 weeks of EUC in all states regardless of the unemployment rate. Tier 3 offers 13 weeks of EUC in states with an unemployment rate of at least 6%. Finally, Tier 4 provides an additional 6 weeks of benefits in states with an unemployment rate of at least 8.5%.
Another difficulty with the new legislation is that while it extends the availability of EUC, it does not extend the filing deadline. All claims under any tier must be filed by December 31. This deadline is problematic because the 14 weeks of EUC available under Tier 2 must be exhausted before one can apply for the additional six weeks of benefits available under Tier 4.Since there are less than 14 weeks left in the year, it is impossible for anyone to apply for Tier 4 benefits. Consequently, these benefits will only be available if Congress passes additional extension legislation before the December 31 deadline.
Strategy:
If you are one of the 100,000 California workers who have exhausted previously available unemployment benefits, you may be eligible for an extension under the new legislation. Over the next couple weeks, the EDD will be notifying employees of their potential eligibility via mail or a message on their last unemployment check. The EDD will also automatically file extensions for eligible employees. If you do not receive notification or confirmation of an extension, contact the EDD. In the event that you believe you are entitled to an extension and have been denied this extension or your unemployment benefits all together, consult a California labor law attorney to determine your rights.
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