Unemployment Compensation

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April 3, 2013

IMPORTANT NEWS ABOUT FEDERAL EXTENDED UNEMPLOYMENT COMPENSATION (EUC08)

Effective for weeks beginning April 28, 2013, EUC08 weekly benefit payments will be reduced by 12.8%. This reduction will be in addition to any other decreases caused by federal withholding tax, overpayment offsets, child support or other deductible income such as wages or pensions. Because EUC08 is a 100% federally funded benefit program and has not been specifically exempted by legislation, it will be affected by sequestration. The expected duration of the sequestration is through September 30, 2013.

“Sequestration” is the process of automatic spending cuts where budgetary resources are permanently canceled to reach certain budget policy goals. It was first authorized by the Balanced Budget and Emergency Deficit Control Act of 1985 (BBEDCA, Title II of P.L. 99-177, commonly known as the Gramm-Rudman-Hollings Act). Sequestration was included as an enforcement tool in the more recent Budget Control Act of 2011 (BCA, P.L. 112-25).

For additional information about sequestration, click here. Information concerning EUC08 is on page 18 of the document.


April 4, 2013

Tier 3 EUC08 Benefits Triggers Off

When the unemployment rate for Alabama was announced on March 18, 2013, the average rate for the last three months was below the level required for Tier 3 EUC08 benefits to be payable under federal law. Therefore, claimants exhausting Tier 2 benefits with a payment for any week ending after 4/13/13 will have no further entitlement to EUC08 benefits.

Individuals who have remaining Tier 3 benefits on 4/13/13 will be allowed to receive Tier 3 benefits for subsequent weeks until the balance is exhausted - as long as all other eligibility requirements are met.

Unemployed citizens receiving extended/emergency unemployment compensation benefits are still required to participate in mandatory reemployment activities at the Career Centers and conduct an active work search which is documented on the required form EUC 17. Claimants must bring their completed work search forms to these interviews or supply them to the Central Office when requested.