What You Need to Know About Unemployment Insurance

Reports say the unemployment rate has hit a sixteen-year high. Record numbers of people are jobless and more are being laid off every day. Earlier this month, President Bush signed a new law, The Unemployment Extension Act of 2008, which would extend the length of time for unemployment benefits.

Typically, workers are able to receive 26 weeks of unemployment. The new law could extend that time by up to 13 weeks in states with the highest unemployment rates. All other states would extend the benefit period by seven weeks. Nine states currently have unemployment rates that exceed the national average: Michigan, Rhode Island, California, South Carolina, Nevada, Illinois, Ohio, Oregon, and Florida.

Who qualifies for unemployment?

Unemployment requirements are different from one state to the next. In general, you cannot have lost your job through something you’ve done (e.g. quit, show up late, etc.) and you must be actively looking for a new job. You may be able to receive unemployment benefits in some states if you were fired or quit because of medical reasons. Your income and time on the job are also considered in determining whether you’ll receive unemployment assistance and how much you need.

How much will you receive?

Again, it varies by state, but generally you receive half of your last paycheck for 26 weeks up to a maximum of the state’s average income. In Ohio, for example, the maximum weekly benefit amount is $493. In Nevada, it’s $365.

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How to file?

Contact your state’s Unemployment Insurance agency after you’ve become unemployed. You may be able to file your claim over the phone or using the internet. You’ll typically receive your first benefit check between two and three weeks after you’ve filed your claim. You can locate contact information for your state’s Unemployment Insurance agency via the U.S. Department of Labor’s website.