by Philo Gabriel

Created on: August 13, 2010   Last Updated: November 25, 2010

Unemployment compensation is a temporary benefit provided to eligible unemployed workers while they seek a new job.  As a result of legislation passed in July 2010, many unemployed workers whose benefits were about to run out were able to receive benefits for several additional weeks.  Applying for extended benefits is generally a simple process similar to applying for the initial benefits.

Unemployment compensation programs are administered by states, and are a product of both federal and state law, so it is important to seek specific information from the state in which you reside.

What one can say in general terms is that to be eligible for unemployment compensation, the unemployed worker has to have been working full time, not been self-employed, and have lost their job through no fault of their own.  That is to say, they cannot have quit or been fired with cause, but must have been terminated through layoffs unrelated to job performance, for instance.  The standard limit for benefits is 26 weeks, with the payments typically being between one quarter and one half of what the person was making on average before becoming unemployed.  The worker must provide some form of evidence that they are actively looking for work while receiving benefits.

The rules on standard unemployment compensation vary state to state, but the rules on extended unemployment benefits (also called emergency unemployment compensation) differ even more.  Usually extended benefits come and go in a state, depending on the economic conditions.  If the unemployment rate is above a certain percentage that the state designates, the extended benefits program comes into effect, and if it is not, then no extensions beyond the original 26 weeks are granted.  Most often the extensions are for 13 weeks, though this too can vary.

At times the federal government will step in to provide emergency funds for extended unemployment benefits, such as was done with the aforementioned July 2010 legislation.

You may not apply for extended unemployment benefits until your standard benefits run out and you receive an official notification that extended benefits are available.  Of course, even though you have to wait to apply, you needn’t wait in suspense to find out if your state does have an active extended unemployment benefits program and what its eligibility requirements are.  In fact, you can and should make inquiries about this well before your benefits run out, so you’ll know where you stand when the time comes.

Most often what you will need to do to be eligible for the extended benefits is basically just continue doing what kept you eligible for the standard unemployment benefits.  That is, you need to fill out your weekly forms, actively look for work, document any jobs you attempted to get, and report any income you received.

Besides these continuing obligations, most states will also require you to fill out and submit additional paperwork specifically requesting extended unemployment compensation.

If you are denied extended benefits, there is an appeal process, but it can be time-consuming, and especially if you hire a lawyer to handle it for you, it can be quite expensive.  So only in rare cases does it make sense to pursue it.

Sources:

"Extended Unemployment Benefits." Employee Issues.

"How to Get Extended Unemployment Benefits." eHow.

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