— Posts About Unemployment Benefits

Republican Senator Blocking Unemployment and COBRA Benefits

Inexplicably, Republican Senator Jim Bunning has held up a much-needed extension of unemployment and COBRA benefits.  Bunning has single-handily blocked a vote on a 30-day extension by being the only senator to oppose a unanimous consent motion to vote on the bill, which was passed earlier by the House. The extended benefits are scheduled to expire today.  Thousands may lose benefits because of Bunning — how many depending on how quickly Democrats can force a vote on the bill.  This callous disregard of the needs of working class Americans is outrageous, as are Senate rules which allow a single Senator to hold up such essential legislation.

The stress of losing a job is hard enough, and has been shown to create adverse health effects, but the least the government can do is provide unemployment benefits in a timely manner.  More coverage here and here.

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President Signs Bill Extending COBRA and Unemployment Benefits

On December 21, 2009, President Obama signed a Defense Appropriations Bill, which also included two-month extensions for unemployment benefits and the 65% COBRA subsidy that was in the stimulus package.   Specifically, the act extended the COBRA premium reduction eligibility period for two months until February 28, 2010, and increased the maximum period for receiving the subsidy for an additional six months (from nine to 15 months). The Department of Labor has this useful fact sheet regarding the COBRA subsidy and its extension.

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Genetic Information Nondiscrimination Act Now in Effect; Extension for Unemployment Still Needed

The Genetic Information Nondiscrimination Act (GINA), which was passed last year, goes into effect this weekend with regard to its ban on employment discrimination.  GINA prohibits employers from requesting genetic testing or considering someone’s genetic background in hiring, firing or promotions.  The EEOC’s new website is a good source of information on the Act.

While Congress did well in enacting GINA, its effort to extend unemployment benefits was apparently poorly executed.  Although Congress lengthened the period for extended benefits, it failed to renew the extended benefit program beyond the end of the year.  Hopefully Congress will act quickly, because North Carolina’s unemployment rate is now 11%, but the Senate has been anything but speedy as of late.

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Unemployment Extension Finally Passed

The Senate finally passed the extension for unemployment insurance last week, and it was promptly signed by President Obama on Friday.  The extension was originally passed by the House in September, but it had been held up in the Senate by Republicans.  The extension will provide 20 additional weeks of benefits for unemployed workers in North Carolina.  Some basic details are here, but more concrete information should posted on the ESC’s site shortly.

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Labor Market Continues to Worsen

As our clients continue to tell us, the current labor market is an incredibly brutal environment for workers seeking work.  Nationally, the number of job openings per person looking for a job is at a record low.  Hopefully, the Senate will soon pass the 13-weeek unemployment extension that recently passed in the House.

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Today’s Employment Decision by the NC Supreme Court

Carolina Power & Light Company v. Employment Security Commission: At issue was whether an employee who accepts a voluntary early retirement package, offered by the employer as part of a company-wide downsizing, is eligible for unemployment insurance benefits.  In a unanimous opinion, the Court held that the employee was not entitled to benefits because he still had a position, and thus had left his employment “without good cause attributable to the employer.”  The opinion summarizes the existing case law on “good cause” in the unemployment context.

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Unemployment Benefits Expansion Signed by Governor

House Bill 1090, which allows workers receiving severance pay to also receive benefits, was signed by the governor on July 27, 2009.  This act becomes effective October 1, 2009, and expires July 1, 2011.  Further regulatory guidance from the ESC may be forthcoming.  The text of the bill can be found here.

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Unemployment Legislation passed by NC Legislature

Two important unemployment bills have passed.

The first allows NC to receive over a quarter billion in needed funds from the federal government to pay benefits and help the ESC with its administrative costs, and also liberalizes eligibility for benefits for those who work part time, for those who leave work to accompany a spouse who relocates, and for those who leave work due to illness or illnesses in their immediate families.

The second bill changed the current law that required an unemployed worker to exhaust his or her severance before being eligible for benefits (unless involved in ESC approved retraining).  Now unemployed workers may start drawing immediately (after their waiting week) without regard to severance payments.  The bill becomes effective Oct. 1 and sunsets in July of 2011.  Because an unemployed worker must still exhaust “separation pay,”  some work will be required inside the agency to distinguish the two.

Mike Okun assisted in the legislative effort.

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Unemployment Data

Although there’s lots of happy talk about the economy turning around, and the big banks are apparently minting money, the situation for ordinary workers is still perilous.   The long-term unemployment rate — the proportion of the labor force that has been out of work for at least 15 weeks — is at the highest level since the depression.  And the broad measure of unemployment plus under-employment is over 20% in some states, and is at 17% in North Carolina.  So extended unemployment benefits are more important than ever.  See here for for more info on how to apply.

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