38  Monthly Labor Review • January 2011

Unemployment Insurance, 2010

Changes in Federal and State unemployment 

insurance legislation in 2010

Federal enactments extend benefits and provide Federal funding 

to the States to cover costs, and additional enactments include 

other provisions affecting the unemployment insurance program; 

State enactments include provisions regarding extended benefits, 

work sharing, tax schedules, and taxable wage bases

Loryn Lancaster

Loryn Lancaster is an 

unemployment insurance

program specialist in the

Division of Legislation,

Office of Unemployment

Insurance, Employment

and Training Administration, U.S. Department of

Labor. Email: Lancaster.

Loryn@dol.gov

During 2010, there were six Federal 

legislative enactments and one rule 

that affected the Federal–State unemployment compensation program. 

Temporary Extension Act of 2010 (P.L. 111-

144), enacted March 2, 2010

Emergency Unemployment Compensation. The 

ending date for the Emergency Unemployment Compensation (EUC) program is extended for new entrants from February 28, 

2010, to April 5, 2010, and the ending date 

for phaseout for current beneficiaries is extended from July 31, 2010, to September 4, 

2010.

The funding of EUC benefits from the 

general fund of the Treasury and of administrative costs from the employment security 

administration account has been authorized 

to continue.

Extended benefits. The ending dates for the 

100-percent Federal funding of extended 

benefits and the provision expanding extended benefit eligibility are extended from February 28, 2010, to April 5, 2010, and the ending date for phaseout for current beneficiaries 

is extended from July 31, 2010, to September 

4, 2010.

The ending date of the provision for the 

Federal funding of the first week of extended 

benefits in States with no waiting week is extended from July 31, 2010, to September 4, 

2010.

Federal Additional Compensation. The ending 

date for the Federal Additional Compensation program increasing the weekly benefit 

amount by $25 is extended from February 28, 

2010, to April 5, 2010, and the ending date for 

phaseout for current beneficiaries is extended 

from August 31, 2010, to October 5, 2010.

Continuing Extension Act of 2010 (P.L. 

111-157), enacted April 15, 2010

These provisions take effect as if included in 

the Temporary Extension Act of 2010 (P.L. 

111-144).

Emergency Unemployment Compensation. The 

ending date for the EUC program is extended 

for new entrants from April 5, 2010, to June 

2, 2010, and the ending date for phaseout for 

current beneficiaries is extended from September 4, 2010, to November 6, 2010.

Extended benefits. The ending dates for the 

100-percent Federal funding of extended 

benefits and the provision expanding extended benefit eligibility are extended from April 

5, 2010, to June 2, 2010, and the ending date 

for phaseout for current beneficiaries is extended from September 4, 2010, to November 

6, 2010.

The ending date of the provision for the 

Federal funding of the first week of extended 

benefits in States with no waiting week is extended from September 4, 2010, to November 

6, 2010.
Monthly Labor Review • January 2011  39

Federal Additional Compensation. The ending date for 

the Federal Additional Compensation program increasing the weekly benefit amount by $25 is extended from 

April 5, 2010, to June 2, 2010, and the ending date for 

phaseout for current beneficiaries is extended from October 5, 2010, to December 7, 2010.

Unemployment Compensation Extension Act of 

2010 (P.L. 111-205), enacted July 22, 2010 

Emergency Unemployment Compensation. The ending 

date for the EUC program is extended for new entrants 

from June 2, 2010, to November 30, 2010, and the ending date for phaseout for current beneficiaries is extended 

from November 6, 2010, to April 30, 2011.

The funding of EUC benefits from the general fund of 

the Treasury and of administrative costs from the employment security administration account has been authorized 

to continue.

The EUC agreement will no longer apply, and EUC

benefits will not be payable in a State if the method of 

computing regular compensation has been modified and 

results in the average weekly benefit amount payable of 

regular compensation (disregarding any Federal Additional Compensation payable) being lower than it was on 

June 2, 2010. 

Modification of EUC requirement regarding regular compensation entitlement. The EUC requirement that individuals 

exhaust all regular compensation entitlement before receipt of EUC entitlement was modified. It now provides 

that if

• a claimant was determined to be entitled to EUC with 

respect to a benefit year, 

• that benefit year expired,

• the claimant has remaining entitlement to EUC with 

respect to that benefit year, and

• his or her weekly benefit amount of regular compensation in a new benefit year would be at least either 

$100 or 25 percent less than his or her initial weekly 

benefit amount,

then the State will take one of the following four actions:

1. establish a new benefit year for the individual but defer payment of regular compensation until the EUC

claim has been exhausted; 

2. defer the establishment of the new benefit year and 

“freeze” the base-period wages currently available 

for use in establishing a benefit year when the EUC

claim has been exhausted; 

3. establish the new benefit year, commence regular 

compensation payments, and augment the new 

weekly benefit amount with funds from the claimant’s EUC account equal to the difference between the 

new regular compensation weekly benefit amount 

and the old EUC claim’s weekly benefit amount; or

4. continue to pay the EUC claim if the individual elects 

not to file a claim for regular unemployment insurance benefits in the new benefit year.

Taking one of these four actions determines whether an 

individual will receive EUC or regular compensation. This 

provision is applicable to claimants whose benefit year expires after July 22, 2010.

Extended benefits. The ending dates for the 100-percent 

Federal funding of extended benefits and the provision 

expanding extended benefit eligibility are extended from 

June 2, 2010, to December 1, 2010, and the ending date 

for phaseout for current beneficiaries is extended from 

November 6, 2010, to May 1, 2011.

The ending date of the provision for the Federal funding of the first week of extended benefits in States with 

no waiting week is extended from November 6, 2010, to 

April 30, 2011.

Claims Resolution Act of 2010 (P.L. 111-291), enacted 

December 8, 2010

Unemployment compensation debts. The following are 

some of the provisions of the Claims Resolution Act of 

2010:

• to amend the Internal Revenue Code of 1986 regarding collection of past-due, legally enforceable State 

debts

• to remove the requirement that an offset for an overpayment of Federal income taxes be permitted only 

against residents of the State seeking the offset; the 

offset now applies to residents of any State

• to remove the requirement to notify the taxpayer, by 

certified mail with return receipt, of the covered unemployment compensation debt

• to modify the definition of “covered unemployment 

compensation debt” to include a past-due debt for 

the person’s failure to report earnings

• to modify the definition of “covered unemployment 

compensation debt” to mean contributions due to the 
Unemployment Insurance, 2010

40  Monthly Labor Review • January 2011

unemployment fund of a State that has determined 

the person to be liable (no longer limited to liability 

due to fraud)

• to provide that “covered unemployment compensation debt” may be collected beyond 10 years (under 

prior law, the debt was uncollectable after 10 years)

Reporting of first day of earnings to the National Directory of 

New Hires. The Claims Resolution Act of 2010 amends 

the Social Security Act to require employers to report to 

the National Directory of New Hires the date on which 

services for remuneration were first performed by the 

newly hired employee. The amendment also provides that 

each required report furnished to the National Directory 

of New Hires shall, to the extent practicable, be made on 

a W-4 form. (Previously, the report had to be furnished 

on a W-4 form.)

Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (P.L. 111-

312), enacted December 17, 2010

Emergency Unemployment Compensation. The ending 

date for the EUC program is extended for new entrants 

from November 30, 2010, to January 3, 2012, and the 

ending date for phaseout for current beneficiaries is extended from April 30, 2011, to June 9, 2012.

The funding of EUC benefits from the general fund of 

the Treasury and of administrative costs from the employment security administration account has been authorized 

to continue.

Extended benefits. The ending dates for the 100-percent 

Federal funding of extended benefits and the provision 

expanding extended benefit eligibility are extended from 

December 1, 2010, to January 4, 2012, and the ending 

date for phaseout for current beneficiaries is extended 

from May 1, 2011, to June 11, 2012.

New extended benefit provisions permit States to 

amend their laws to temporarily modify the provisions 

concerning “on” and “off ” indicators on the basis of the 

insured unemployment rate and the total unemployment rate. States are permitted to make determinations 

of whether there is an “on” or “off ” indicator by comparing current unemployment rates with the unemployment 

rates for the corresponding period in the 3 preceding years 

(known as the “look back” period), effective with respect 

to compensation for weeks of unemployment beginning 

after December 17, 2010, or if later, the date established 

pursuant to State law, and ending on or before December 

31, 2011. Prior law limited the “look back” period to the 2 

preceding years.

A technical correction to Section 6402(f ) of the Internal Revenue Code of 1986 provides that any covered 

unemployment compensation debt may be collected via 

the Treasury Offset Program.

Omnibus Trade Act of 2010 (P.L. 111-344), enacted December 29, 2010

This act extended for 6 weeks, through February 12, 2011, 

the Trade Adjustment Assistance program created under 

the Trade Act of 1974 and the American Recovery and 

Reinvestment Act of 2009. The Trade Adjustment Assistance program had been set to expire December 31, 2010.

Final rule regarding funding goals for interestfree Title XII advances

The U.S. Department of Labor issued a final rule (effective 

October 18, 2010) implementing Federal requirements 

conditioning a State’s receipt of interest-free Title XII 

advances from the Federal Government for the payment 

of unemployment compensation upon the State meeting 

“funding goals” established under regulations issued by the 

Secretary of Labor. The final rule requires that States meet 

a solvency criterion in 1 of the 5 calendar years preceding 

the year in which advances are taken, and also meet two 

tax-effort criteria for each calendar year after the solvency 

criterion is met, up to the year in which an advance is 

taken.

Following is a summary of some significant changes in 

State unemployment insurance laws that occurred in 2009 

and 2010:

Base periods. The following States amended their unemployment compensation laws to provide for the use of the 

most recently completed calendar quarter under certain 

circumstances, in either the regular base period or an alternative base period: Maryland, Nebraska, South Carolina, Utah, and Virgin Islands (2009). The effective dates 

vary among the States.

Following are some of the modified or new provisions 

in State unemployment compensation laws, regulations, or 

policies, along with a list of States that clarified, amended, 

interpreted, or added each provision:

• Individuals will not be denied benefits under provisions relating to availability for work, active search for 

work, or refusal to accept work solely because of seeking 
Monthly Labor Review • January 2011  41

only part-time work. (Colorado (2009), District of Columbia, Nebraska, Nevada, South Carolina, South Dakota, and Virgin Islands (2009).) 

• An individual will not be disqualified from receiving benefits due to separation from employment if that 

separation is because of (1) a compelling family reason 

such as domestic violence or illness or disability of the 

individual’s immediate family, or (2) the need to accompany one’s spouse—because of a change in the location 

of the spouse’s employment—to a place from which it is 

impractical for the individual to commute. (Alaska, Nevada, Rhode Island, South Carolina, and Virgin Islands 

(2009).)

• Individuals who are entitled to receive benefits and 

who have a dependent will receive a dependents’ allowance of $15 per dependent per week, and the total dependents’ allowance payable to any claimant is capped at $50 

or 25 percent of the individual’s weekly benefit amount, 

whichever is greater. (Rhode Island.)

• Individuals exhausting rights to regular unemployment compensation who are enrolled in an approved 

training program or in a job training program authorized 

under the Workforce Investment Act of 1998 will be 

entitled to an additional amount of benefits equal to 26 

times their average weekly benefit amount for the most 

recent benefit year. Such training programs will prepare 

individuals for entry into a high-demand occupation 

who have been separated from a declining occupation or 

who have been involuntarily separated from employment 

because of a permanent reduction in operations at their 

place of employment. (Maryland, Nebraska, and South 

Dakota.)

The effective dates of the provisions vary among the 

States. 

Alabama 

Extensions and special programs. The expiration date for paying extended benefits based 

upon the seasonally adjusted total unemployment rate (TUR) to establish an “off ” indicator 

was changed to the end of the week ending 

4 weeks prior to the last week for which the 

Federal Government pays 100 percent of most 

extended benefits (EB) costs. The alternative 

expiration date of on or before December 5, 

2009, is removed.

Financing. The quarterly 0.06-percent special assessment used to fund the Employment 

Security Enhancement Fund was extended 

from September 30, 2010, to September 30, 

2011.

The current tax rate structure for determining an employer’s contribution rate was 

extended from September 30, 2010, to September 30, 2011.

Arizona

Financing. Benefits paid to individuals 

whose employment was terminated because 

their employer was called to active duty in the 

military will not be charged to employers’ accounts.

Benefits paid to individuals whose employment was terminated because a former 

employee of the employer returned to work 

for the employer after being called to active 

duty in the military will not be charged to 

employers’ accounts.

California

Administration. The Employment Development Department is required to submit a 

report to the Governor and legislature on the 

effectiveness of the California Training Benefits Program no later than September 1, 2016.

The Department is required to revise current language in the California Employer’s 

Guide to make clear that an elected official 

is not eligible to collect unemployment insurance benefits on the basis of income earned 

while serving as an elected official.

Coverage. The director of the Employment 

Development Department is required to 

adopt regulations no later than July 1, 2011, 

clarifying that service performed as an elected 

official is excluded from coverage for purposes 

of unemployment insurance benefit eligibility.

Monetary entitlement. The effective date 

for implementing an alternative base period 

changed from as soon as possible, but no later 

than April 3, 2011, to as soon as possible, but 

no later than September 3, 2011.

Nonmonetary eligibility. An individual may 

be deemed to have left his or her most recent 

work with good cause if he or she leaves employment to protect his or her family (previously, children), or himself or herself, from 

domestic violence.

The eligibility requirements for training/

retraining benefits are revised by establishing 

the California Training Benefits Program, effective January 1, 2011, or, if not feasible, no 

later than July 1, 2011. Individuals eligible 

for unemployment benefits who apply under 

the Training Benefits Program will be issued a determination of automatic eligibility 

for a period of training/retraining benefits 

if certain criteria are met, including that the 

training be authorized by the Workforce Investment Act of 1998 or by the Trade Act of 

1974, as amended. If automatic eligibility for 

a period of training/retraining benefits is not 

authorized, individuals eligible for unemployment benefits will be issued a determination 

of potential eligibility for a period of training/

retraining benefits if certain criteria are met. 

(Previously, eligible individuals could receive 

retraining benefits pursuant to the Trade Act 

of 1974, as amended, until January 1, 2015; 

and the law authorized individuals eligible for 

unemployment benefits to apply for training/

retraining benefits and required that a determination of potential eligibility for specified 

training/retraining benefits be issued if specified conditions apply.)

Colorado

Extensions and special programs. The director of the Colorado Department of Labor 

and Employment is required to establish a 
Unemployment Insurance, 2010

42  Monthly Labor Review • January 2011

voluntary work-share program allowing the 

payment of unemployment compensation 

benefits to employees whose wages and hours 

have been reduced by at least 10 percent but 

not more than 40 percent. The maximum 

number of weeks payable is 18 weeks. A 

negative-excess employer is not eligible to 

participate in the work-share program. Workshare benefits paid shall be charged to the 

account of the participating employer in the 

same manner as regular benefits. Participation 

in the work-share program requires that the 

employer not eliminate or diminish health 

insurance, retirement benefits received under 

a pension plan, paid vacation or holidays, sick 

leave, or any other similar employee benefits 

provided, immediately prior to submitting the 

work-share plan. The period of an approved 

plan is 12 months. The work-share plan may 

be modified to meet changed conditions, if 

the modification meets certain requirements. 

If the director finds that the work-share program causes the unemployment insurance 

cash fund to accelerate towards insolvency, 

the work-share provisions will be repealed effective July 1, 2013.

Connecticut

Financing. Both the State and Indian 

tribes, towns, cities and other political and 

governmental subdivisions of the State shall 

pay 100 percent of all extended benefits paid 

that are attributable to service in their employ.

District of Columbia

Appeals. The period for filing an appeal is 

extended from 10 calendar days to 15 calendar days after the mailing of the notice or 

the actual delivery of such notice. The 15-day 

appeal period is extended if the claimant or 

any party to the proceeding shows excusable 

neglect or good cause.

Extensions and special programs. The director of the District of Columbia Department 

of Employment Services is required to establish a voluntary shared work unemployment 

compensation (short-time compensation) 

program applicable when the normal weekly 

hours of work are reduced by not less than 20 

percent and not more than 40 percent. The 

maximum number of weeks payable is 50 calendar weeks during the 12-month period of 

the shared work plan, provided that 2 weeks 

of additional benefits shall be payable when 

regular benefits and any other Federal or State 

extended benefits are exhausted. A plan may 

be approved if 

• a participating employer has filed all past 

and present required reports, and has paid 

all contributions and benefit cost payments, or if a reimbursing employer has 

made all past and current payments in lieu 

of contributions; 

• the shared work plan applies to and identifies a specific affected unit; 

• the employer has at least two employees; 

• the employees in the affected unit are 

identified by name and Social Security 

number; 

• the shared work plan describes the manner 

in which the participating employer treats 

the fringe benefits of each employee in the 

affected unit; and 

• the employer certifies that the shared work 

plan will not be used to reduce the fringe 

benefits offered to employees. 

A shared work plan shall not be implemented to subsidize seasonal employers during the off-season or to subsidize employers 

who have traditionally used part-time employees.

A shared work plan may be modified to 

meet changed conditions, if the modification 

does not substantially change the basic provisions of the plan. 

The term “fringe benefits” is defined to 

mean health insurance, a retirement benefit 

received under a pension plan, a paid vacation 

day, a paid holiday, sick leave, and any other 

analogous employee benefit provided by an 

employer.

The voluntary shared work unemployment compensation program expires March 

6, 2011.

All individuals who have exhausted all 

rights to regular unemployment compensation, and who are enrolled in and making 

satisfactory progress in a State-approved 

training program or a job training program 

authorized under the Workforce Investment 

Act of 1998, will be entitled to a training 

extension of benefits equal to 26 times their 

average weekly benefit amount for the most 

recent benefit year, less any deductible income. Such training programs will prepare 

individuals for entry into a high-demand 

occupation. These people will be individuals 

who have been separated from a declining 

occupation or who have been involuntarily 

separated from employment because of a permanent reduction of operations at their place 

of employment.

Financing. The quarterly 0.2-percent administrative funding assessment expiration 

date is extended from December 31, 2008, to 

December 31, 2013.

The amount of dependents’ allowance paid 

will not be charged to the individual accounts 

of the employers.

The training extension of benefits paid will 

not be charged to the individual employer accounts.

Monetary entitlement. Each individual who 

is entitled to receive benefits and has at least 

one dependent will receive an additional $15 

per dependent per week, subject to an aggregate limitation on the total dependents’ allowance of $50 per week or 50 percent of the 

individual’s weekly benefit amount, whichever 

is lesser. The dependents’ allowance provision 

is applicable to claims for benefit years beginning August 10, 2009, through December 31, 

2010.

Nonmonetary eligibility. Individuals will not 

be disqualified from receiving benefits due to 

separation from employment if that separation is for a “compelling family reason.” Two 

compelling family reasons are the following:

• the illness or disability of a member of the 

individuals’ immediate family

• the need for the individuals to accompany 

their spouse—because of a change in the 

location of the spouse’s employment—to a 

place from which it is impractical for them 

to commute 

The domestic violence provision is amended 

by providing that an individual will not be 

disqualified from receiving benefits due to 

separation from employment if that separation is for the compelling family reason of domestic violence against the individual or any 

member of the individual’s immediate family, 

unless the individual was the perpetrator of 

the domestic violence.

Florida

Administration. Lawmakers have deleted 

the provision stating that the tax collection 

service provider may grant a waiver from electronic reporting only if the employer timely 

files by TeleFile unless the employer wage 

detail exceeds the service provider’s TeleFile 

system capabilities.

The process for filing claims must incorporate the process for registering for work, and a 
Monthly Labor Review • January 2011  43

claim for benefits may not be processed until 

the work registration requirement is satisfied.

Liens securing the payment of unemployment tax obligations lapse 10 years after the 

date of the original filing of the notice of lien. 

An action to collect amounts due may not be 

commenced after the expiration of the lien 

securing the payment of the amounts owed.

An employing unit that files an erroneous, 

incomplete, or insufficient report shall pay a 

penalty of $50 or 10 percent of any tax due, 

whichever is greater, but no more than $300 

per report. The penalty will be added to any 

tax, penalty, or interest otherwise due and 

shall be waived if the employing unit files an 

accurate, complete, and sufficient report within 30 days after a penalty notice is issued. The 

penalty may not be waived more than once 

during a 12-month period. 

The penalty on employers for failing to file 

the Employer’s Quarterly Report by approved 

electronic means increased from $10 to $50 

plus $1 for each employee. The penalty does 

not apply if the tax collection service provider 

waives the electronic filing requirement in 

advance.

The penalty for failing to remit contributions or reimbursements by approved electronic means increased from $10 to $50.

The penalty on individuals who prepare 

and report for 100 or more employers for failing to file the Employer’s Quarterly Report 

by approved electronic means increased from 

$10 to $50 plus $1 for each employee. The 

penalty does not apply if the tax collection 

service provider waives the electronic filing 

requirement in advance.

Liens securing the payment of unemployment tax obligations will lapse 10 years after 

the date of the original filing of the notice of 

lien. An action to collect amounts due may 

not be commenced after the expiration of 

the lien securing the payment of the amounts 

owed.

The Agency for Workforce Innovation 

may revoke all certificates of registration, permits, or licenses issued by the agency to a taxpayer when the agency files a warrant, notice 

of lien, or judgment lien certificate against the 

property of a taxpayer, provided that certain 

procedures are followed.

Coverage. Single-member limited liability 

companies will be treated as employers.

Extensions and special programs. The expiration date of an “on” indicator week based on 

the seasonally adjusted total unemployment 

rate (TUR) for the Federal–State Extended 

Benefits (EB) Program changed from December 12, 2009, to January 30, 2010.

The expiration date of a “high unemployment period” based on the seasonally adjusted TUR for the Federal–State EB program 

changed from December 12, 2009, to January 

30, 2010.

The EB provisions are applicable to claims 

for weeks of unemployment in which the 

“exhaustee” establishes entitlement to EB for 

weeks between February 22, 2009, and February 27, 2010 (previously, between February 22, 

2009, and January 2, 2010).

The expiration date of an “on” indicator 

week based on the seasonally adjusted TUR

for the Federal–State EB program changed 

from January 30, 2010, to May 8, 2010.

The expiration date of a “high unemployment period” based on the seasonally adjusted TUR for the Federal–State EB program 

changed from January 30, 2010, to May 8, 

2010.

The expiration date of an “on” indicator 

week based on the seasonally adjusted TUR

for the Federal–State EB program changed 

from May 8, 2010 to November 6, 2010.

The expiration date of an “on” indicator 

week based on the seasonally adjusted TUR

for the Federal–State EB program changed 

from November 6, 2010 to December 10, 

2011.

The EB provisions are applicable to claims 

for weeks of unemployment in which the 

exhaustee establishes entitlement to EB for 

weeks between February 22, 2009, and June 2, 

2010 (previously, between February 22, 2009, 

and February 27, 2010).

The following definition and work search 

requirement are applicable to the Federal–

State EB program: 

“Good job prospects”: An individual has 

good job prospects if he or she has a definite 

return-to-work date within 4 weeks of the 

determination notice of eligibility for EB. 

If, after 4 weeks of EB, an individual having 

good job prospects remains unemployed, the 

individual is required to fill out and return 

the Unemployment Compensation Extended 

Benefits Eligibility Review Questionnaire 

within 10 days of the mailing date. Failure to 

comply will result in disqualification from receiving EB until 4 weeks have passed and the 

individual has earned wages equal to 4 times 

his or her weekly benefit amount.

It is required for any individual who applies for unemployment insurance benefits to 

conduct at least two work-search activities on 

separate days per week, unless the individual’s 

situation meets the definition of “good job 

prospects.”

Financing. The taxable wage base remains 

at $7,000 for calendar years 2010 and 2011 

(supersedes previous legislation increasing it 

to $8,500). 

The taxable wage base increases to $8,500 

for calendar years 2012, 2013, and 2014.

The taxable wage base decreases from 

$8,500 to $7,000 for calendar year 2015 and 

each year thereafter, and increases to $8,500 

in any calendar year in which repayment of 

the principal amount of a Title XII advance is 

due to the Federal Government.

The positive adjustment factor for when 

the trust fund balance is less than 4 percent 

of taxable payrolls is effective January 1, 2012.

To calculate the employer tax rate effective on January 1, 2012, and January 1, 2013, 

use taxable-payroll data available for 2009 

based on the $7,000 taxable wage base, and 

use taxable-payroll data available for 2010 and 

2011 based on the $8,500 taxable wage base.

An additional rate is assessed on contributing employers to pay for interest due on 

Title XII advances. The additional rate will 

be assessed no later than February 1 in each 

calendar year in which an interest payment 

is due. The amount of such interest shall be 

estimated no later than December 1 of the 

calendar year preceding the calendar year in 

which an interest payment is due. The basis 

for the estimate includes the following at a 

minimum:

• the amounts actually advanced to the trust 

fund,

• the amounts expected to be advanced to 

the trust fund on the basis of current and 

projected unemployment patterns and 

employer contributions,

• the interest payment due date, and

• the interest rate that will be applied by the 

Federal Government to any accrued outstanding balances.

For an annual administrative fee not to 

exceed $5 each year, contributing employers 

may pay their 2010 and 2011 quarterly contributions due for wages paid in the first three 

quarters of 2010 and 2011 in equal installments if those contributions are paid under 

certain specific conditions.

September 30 (previously, June 30) is the 

date that the Unemployment Compensation 

Trust Fund balance is determined for purpos-
Unemployment Insurance, 2010

44  Monthly Labor Review • January 2011

es of computing a positive adjustment factor, 

beginning January 1, 2012. If a contributing 

employer fails to respond within 20 days after 

the delivery of the notice of claim, the employer’s account under certain circumstances 

may not be relieved of benefit charges. 

Nonmonetary eligibility. To be eligible to receive benefits, individuals (except non-Florida residents, persons on a temporary layoff, 

union members hired through a union hiring 

hall, and persons claiming benefits under an 

approved short-time compensation plan) 

must register with the Agency for Workforce 

Innovation for work and subsequently report 

to the one-stop career center as directed for 

reemployment services.

Overpayments. Nonfraud overpayments are 

nonrecoverable (through repaying or deduction of future benefits payable) if benefits were 

received to which a person was not entitled 

as a result of an employer’s failure to respond 

to a claim notice within the established timeframe.

Hawaii

Financing. Whenever the State requests 

a Title XII advance to pay expected benefit 

claims during a specified period, the director 

of the Hawaii Department of Labor and Industrial Relations may assess all employers the 

amount that is sufficient to pay the principal 

and interest costs on the advance, provided 

that the director develops a mechanism of 

distributing these payments among employers in a fair and equitable manner. 

The calculation of the taxable wage base 

changed for calendar years 2010 and 2011 

only. “Wages” do not include remuneration 

in excess of the wages paid with respect to 

employment to an individual by an employer 

during the calendar year that exceeds 90 percent (previously, 100 percent) of the average 

annual wage (retroactive to January 1, 2010). 

Thereby, the taxable wage base increased from 

$13,000 to $34,900 for 2010 and decreased to 

$34,200 for 2011.

For calendar year 2011 (previously, for calendar 2011 and thereafter) “adequate reserve 

fund” means an amount equal to the amount 

derived (previously, equal to 11⁄2 times the 

amount derived) by multiplying the benefit 

cost rate by the total remuneration paid by all 

employers.

Notwithstanding the ratio of the current 

reserve fund to the adequate reserve fund, 

contribution rate schedule D shall apply for 

calendar year 2010 and contribution rate 

schedule F shall apply for calendar year 2011 

(retroactive to January 1, 2010). For schedule 

D, the minimum contribution rate is 0.20 

percent and the maximum rate is 5.4 percent, 

and for schedule F the minimum rate is 1.20 

percent and the maximum is 5.4 percent.

Monetary Entitlement. The maximum weekly 

benefit amount (MWBA) for calendar years 

2010 and 2011 shall be calculated at 75 percent of the average weekly wage. (For 2010 

the MWBA is $559, and in 2011 it decreases 

to $549.) Beginning with calendar year 2012, 

the MWBA shall be calculated at 70 percent 

of the average weekly wage. (Previously, the 

reduction to 70 percent was to begin with calendar year 2011.)

Indiana

Administration. The provision establishing 

an unemployment claims compliance center 

and required procedures for the center is deleted (effective January 1, 2010). 

The deadline for employer response for 

information changed from within 10 days 

after the date a request is delivered to within 

10 days after the date it is mailed (effective 

January 1, 2010). 

An interim study committee is established 

to study the feasibility of indexing unemployment benefits and the taxable wage base. A 

final report is required before November 1, 

2010. The provision expires January 1, 2011.

The Helping Indiana Restart Employment 

(HIRE) program is established to provide employer subsidies for hiring (applicable upon 

approval of reimbursement available from 

the TANF emergency fund), and the commissioner of the Department of Workforce Development is required to determine whether 

expenditures by an eligible employer allocated 

to the State match money for the program 

may be credited under State or Federal law 

toward the eligible employer’s unemployment 

insurance contributions. A report is due to the 

budget committee no later than June 1, 2010. 

The provision expires June 30, 2010.

Appeals. Effective July 1, 2010, each administrative law judge employed or used by the 

Department of Workforce Development is 

required to be an attorney who is licensed to 

practice law in Indiana. 

Coverage. The Indiana Department of Labor has the power to investigate questions and 

complaints concerning the classification of 

employees, effective July 1, 2010. The department is directed to establish guidelines and 

procedures that must include mechanisms 

to share data with appropriate State agencies 

and recoup contributions owed, recordkeeping requirements for contractors, investigative procedures, and penalties for violations. 

The definition of “employee” found in section 3401(c) of the Internal Revenue Code 

of 1986 and the 20-factor test conducted by 

the Internal Revenue Service are required 

to be used. Recommendations for legislative 

changes, including budgetary recommendations, shall be provided before November 1, 

2010, to the legislative council. After the consideration of any recommendations from the 

pension management oversight commission, 

guidelines and procedures shall be converted 

to rules by August 1, 2011.

Financing. The taxable wage base for calendar year 2010 has been reduced to $7,000 

(previously, $9,500). Beginning with calendar 

year 2011, the taxable wage base increases to 

$9,500.

The standard contribution rate was reduced to 5.6 percent for calendar year 2010 

(previously, 12.0 percent). Beginning with 

calendar year 2011, the standard contribution rate is 12.0 percent. (Effective January 1, 

2010.)

The new employer rate increased to 2.7 

percent from 2.5 percent for calendar year 

2010. Beginning with calendar year 2011, the 

new employer rate decreases to 2.5 percent. 

(Effective January 1, 2010.) 

During calendar year 2010, employers are 

required to pay a rate of not less than 5.6 percent if (1) the required contribution and wage 

reports are not filed within 31 days following 

the computation date, and (2) all contributions, penalties and interest due have not been 

paid within the specified timeframe. Beginning with calendar year 2011, an employer’s 

rate shall be increased by 2 percent if (1) the 

required contribution and wage reports are 

not filed within 31 days following the computation date and (2) all contributions, penalties 

and interest due have not been paid within 

the specified timeframe. (Effective January 2, 

2010.)

The contribution rate for governmental 

entities decreased to 1 percent for calendar 

year 2010. Beginning with calendar year 2011, 

the new employer rate for State and political 

subdivisions increases to 1.6 percent. (Effective January 1, 2010.)

For the calculation of 2010 employer contribution rates, one of four schedules (A, B, 
Monthly Labor Review • January 2011  45

C, or D) will be used. Rates range from 1.1 

percent to 5.6 percent under Schedule A, to 

0.1 percent to 5.4 percent under Schedule 

D. New fund ratio schedules and new rate 

schedules (which include additional schedules 

and different ranges of rates for accounts with 

credit or debit balances) are established for 

calendar years after December 31, 2010. Rates 

for new schedules range from 0.75 percent 

to 10.2 percent for Schedule A and from 0.0 

percent to 5.4 percent for Schedule I. Schedule B is required to be used for calendar year 

2011 to assign each employer’s contribution 

rate. 

Monetary entitlement. Payments made by a 

court system for jury service are not deductible income. 

Nonmonetary entitlement. The requirement 

for claimants to submit one application for 

work in each week for which they claim benefits is deleted (effective July 1, 2010).

An individual may not be denied benefits for any week or determined not able to 

work, available for work, or actively seeking 

work because the individual is responding to 

a summons for jury service. Court proof of 

jury service must be provided to the Indiana 

Department of Labor (effective July 1, 2010).

Iowa

Extensions and special programs. The maximum duration of a shared work plan increases 

from 26 weeks to 52 weeks. The language 

stating that an employing unit is eligible for 

approval of only one plan during a 24-month 

period is deleted.

Financing. The experience rating account 

of both contributory and reimbursable employers is not charged for benefits paid to individuals who leave because of the relocation 

of a military spouse.

Nonmonetary eligibility. Individuals who 

voluntarily quit because of the relocation of 

a military spouse will not be disqualified from 

receiving unemployment compensation.

Kansas

Financing. Each employer’s experience rate 

will be calculated for the 2010 and 2011 tax 

years, and each employer will be assigned to 

an appropriate rate group on the basis of that 

calculation, and assigned a rate based on the 

tax table used in 2010.

The exception to the due date for paying 

quarterly contributions for calendar years 

2010 and 2011 is that contributing employers 

or their officers or agents shall have up to 90 

days past the due date for any of the first three 

calendar quarters in a calendar year without 

being charged any interest; however, when the 

90-day period has passed, employers failing to 

timely pay shall pay a penalty and shall pay 

contributions by the last day of the month following the close of the calendar quarter.

Kentucky

Extensions and special programs. The expiration date of an “on” indicator week based on 

the seasonally adjusted total unemployment 

rate (TUR) for the Federal–State Extended 

Benefits (EB) Program changed to cease to 

be effective at the end of the week ending 4 

weeks (previously 3 weeks) prior to the last 

week for which the Federal Government pays 

100 percent of most EB costs (previously to 

cease to be effective on or before December 

12, 2009). 

Financing. Effective for calendar year 2012, 

the taxable wage base increases from $8,000 

to $9,000 and shall increase by an additional 

$300 on January 1 of each subsequent year to 

2022, but will not exceed $12,000.

The trust fund trigger date (the date that 

the fund’s balance is determined) changed 

from December 31 to September 30.

The computation date (the end of the 

period used to determine the employer’s experience with unemployment) changed from 

October 31 to July 31.

The date the reserve ratio will be determined changed from September 30 to June 

30 and now immediately precedes the computation date.

The applicable rate schedule for the year is 

based on the trust fund balance as of September 30 (previously December 31).

The amount of money required in the trust 

fund to effectuate Schedules A, B, and C of 

Table A changes as follows. If the trust fund 

balance

• equals or exceeds $500,000,000 (previously 

$350,000,000) but is less than the amount 

required to trigger the trust fund adequacy 

rates, the rates in Schedule A shall be in 

effect;

• equals or exceeds $350,000,000 (previously $275,000,000) but is less than 

$500,000,000 (previously $350,000,000), 

the rates listed in Schedule B shall be in 

effect;

• equals or exceeds $250,000,000 but 

is less than $350,000,000 (previously 

$275,000,000), the rates listed in Schedule C shall be in effect.

Reimbursable nonprofit organizations 

and reimbursable governmental entities are 

charged, on a quarterly basis or on the basis 

of any other period determined by the secretary of the Department of Workforce and 

Employment Services, the interest due on the 

total amount billed for regular benefits and 

extended benefits, which shall be credited to 

the unemployment insurance fund.

Effective January 1, 2012, any employer 

subject to paying contributions that has a 

negative reserve account balance may make 

voluntary payments to the fund every other 

calendar year, in addition to the contributions 

required. (Previously, employers with a negative reserve account could make voluntary 

contributions annually.)

Monetary entitlement. A waiting week is 

established, applicable to initial claims made 

on or after January 1, 2012, that is required for 

each benefit year, whether or not consecutive. 

The waiting week becomes compensable once 

the remaining balance on the claim is equal to 

or less than the compensable amount for the 

waiting week.

The weekly benefit rate, except as otherwise provided, is calculated as 1.3078 percent 

of base-period wages, (previously, 1.185 percent of base-period wages), except that no 

weekly benefit amount shall be less than $39 

or more than the maximum rate. Effective 

with claims on or after January 1, 2012, the 

calculation of the weekly benefit rate, except 

as otherwise provided, shall be 1.1923 percent 

of base-period wages, except that no weekly 

benefit amount shall be less than $39 or more 

than the maximum rate.

The amount required in the trust fund to 

determine the maximum weekly benefit rate 

(MWBR) changes as follows. If the trust fund 

balance as of September 30 immediately preceding the benefit year

• equals or exceeds $120,000,000, but 

is less than $200,000,000 (previously 

$150,000,000), the MWBR shall not exceed the prior year’s MWBR by more than 

6 percent.

• equals or exceeds $200,000,000 (previously $150,000,000) but is less than 

$300,000,000, (previously $250,000,000), 
Unemployment Insurance, 2010

46  Monthly Labor Review • January 2011

the MWBR shall not exceed the prior 

year’s MWBR by more than 8 percent.

• equals or exceeds $300,000,000 (previously $250,000,000), but is less than 

$400,000,000 (previously $275,000,000), 

the MWBR shall not exceed the prior 

year’s MWBR by more than 10 percent.

• equals or exceeds $400,000,000 (previously $275,000,000), but is less than 

$500,000,000 (previously $350,000,000), 

the MWBR shall not exceed the prior 

year’s MWBR by more than 12 percent.

• equals or exceeds $500,000,000, the 

MWBR shall not exceed the prior year’s 

MWBR by more than 15 percent. 

Maine

Coverage. Services performed by a worker 

on an H-2A visa are excluded from the term 

“employment.”

Monetary entitlement. In computing the 

weekly benefit for an individual who is partially unemployed, it is now the case that, up 

to an amount equal to the individual’s most 

recent weekly benefit amount, the earnings 

for the week received as a result of participation in full-time training under the Trade 

Act of 1974 as amended by the Trade and 

Globalization Adjustment Assistance Act of 

2009 are not considered wages.

Nonmonetary eligibility. Vacation pay is 

deleted from the definition of disqualifying 

income.

Maryland

Extensions and special programs. All individuals who have exhausted all rights to 

regular unemployment compensation, and 

who are enrolled in and making satisfactory 

progress in a job training program approved 

by the Maryland Department of Labor or 

authorized under the Workforce Investment 

Act of 1998, shall be entitled to a training 

extension of benefits equal to 26 times their 

average weekly benefit amount for the most 

recent benefit year. Such training programs 

shall prepare individuals for entry into a 

high-demand occupation. These people will 

be individuals who have been separated from 

a declining occupation or who have been 

involuntarily separated from employment 

because of a permanent reduction in operations at their place of employment. Individuals may not be denied additional training 

benefits under the available-for-work and 

actively-seeking-work provisions. The payment of additional training benefits is limited 

to 1 year following the end of the benefit year. 

(Effective March 1, 2011, and applicable to all 

claims filed establishing a new benefit year on 

or after March 6, 2011.)

Financing. Contributing employers’ accounts are not charged for additional training 

benefits paid to claimants (effective March 1, 

2011, and applicable to all claims filed establishing a new benefit year on or after March 

6, 2011).

The taxable wage base remains at $8,500 

for calendar years 2011 and 2012.

Notwithstanding the 1.5-percent interest 

rate, and except as otherwise provided, for any 

calendar year in which Table F is applicable, a 

contribution or reimbursement payment due 

and unpaid shall accrue interest at the rate 

of 0.5 percent per month or part of a month 

from the date due until the contribution or 

payment in lieu of contribution and the interest are received. The 0.5-percent interest rate 

is applicable for calendar years 2010 and 2011. 

(Applicable to contributions on taxable wages 

for covered employment beginning on or after 

January 1, 2012.)

The department is required during calendar years 2010 and 2011 to offer a variety 

of payment-plan options to employers. These 

options must allow contributions due on taxable wages for the first 9 months of the calendar year to be paid through December. The 

department is to implement regulations offering employers payment plans for any calendar 

year after 2011 in which employer contributions are to be calculated by use of Table F. 

These payment plans must allow payments for 

contributions due during the first 6 months of 

the year to be spread through August of that 

year.

Monetary entitlement. If a person would not 

be eligible for benefits because of the use of a 

base period consisting of the first four of the 

last five completed calendar quarters, then his 

or her eligibility shall be determined by use 

of a base period that includes the last four 

completed calendar quarters (effective March 

1, 2011, and applicable to claims filed establishing a new benefit year on or after March 

6, 2011). 

The minimum weekly benefit amount increases from $25 to $50, the minimum wages 

needed in the base period to qualify for the 

minimum weekly benefit amount go up from 

$900 to $1,800, and the high-quarter wages 

(that is, the wages in the quarter with the highest wages) needed in the base period to qualify 

for the minimum weekly benefit amount go 

up from $576.01 to $1,176.01. The maximum 

weekly benefit amount increases from $410 to 

$430; the minimum qualifying wages needed 

in the base period to qualify for the maximum 

weekly benefit amount rise from $14,760 to 

$15,480; and the high-quarter wages needed 

in the base period to qualify for the maximum 

weekly benefit amount rise from $9,816.01 

to $10,296.01. (Effective March 1, 2012, and 

applicable to claims filed establishing a new 

benefit year on or after March 4, 2012.) 

Any wages exceeding $50 (previously, 

exceeding $100) per week will be subtracted 

from the claimant’s weekly benefit amount 

(effective March 1, 2011, and applicable to 

claims filed establishing a new benefit year on 

or after March 6, 2011). 

Nonmonetary eligibility. The definition of 

“part-time worker” changes from an individual whose availability for work is restricted 

to part-time work and who works predominantly on a part-time basis throughout the 

year for at least 20 hours per week to an individual whose availability for work is restricted 

to part-time work and who worked at least 20 

hours per week in part-time work for a majority of the weeks of work in the base period 

(effective March 1, 2011, and applicable to 

claims filed establishing a new benefit year on 

or after March 6, 2011).

A part-time worker may not be ineligible 

to receive benefits for a week in which the 

part-time worker is available for and seeking 

only part-time work if the part-time worker is 

actively seeking part-time work and is in a labor market in which a reasonable demand exists for part-time work. An individual is seeking only part-time work if the individual is 

aiming to work hours that are comparable to 

the individual’s work at the time of the most 

recent separation from part-time employment, and to work at least 20 hours per week. 

Previous legislation required that a part-time 

worker be able to work, available for work, 

and actively seeking work, and be eligible to 

receive benefits if eligibility is based on wages 

predominantly earned from part-time work 

done at the previous employment. The legislation also required that that the worker not 

impose any other restrictions on the ability to 

work or availability for work and be in a labor 

market in which a reasonable demand exists 

for part-time work. (Effective March 1, 2011, 

and applicable to claims filed establishing a 

new benefit year on or after March 6, 2011.)
Monthly Labor Review • January 2011  47

The disqualification for gross misconduct 

continues until the claimant has earned wages 

in covered employment equal to at least 25 

(previously 20) times the claimant’s weekly 

benefit amount (effective March 1, 2011, and 

applicable to claims filed establishing a new 

benefit year on or after March 6, 2011).

The disqualification for misconduct continues for a total of at least 10 to 15 weeks 

(previously 5 to 10 weeks). The length of time 

is based on the seriousness of the misconduct. 

(Effective March 1, 2011, and applicable to 

claims filed establishing a new benefit year on 

or after March 6, 2011.)

There was a provision allowing an individual who is eligible for unemployment insurance benefits and who has registered for 

work but subsequently becomes ill or disabled 

after filing for benefits to continue to receive 

unemployment insurance benefits if the individual is unable to work or to seek work because of the illness or disability; this provision 

has been deleted (effective March 1, 2011, 

and applicable to all claims filed establishing 

a new benefit year on or after March 6, 2011).

Massachusetts

Financing. The minimum and maximum 

experience rates are 1.26 percent and 12.27 

percent, respectively (column E) for calendar 

year 2010. 

Minnesota

Administration. An employer is penalized 

if that employer or any employee, officer, or 

agent of that employer offered employment to 

an applicant when, in fact, employment was 

unavailable, but only if the employer’s action 

was taken in order to prevent or reduce payment of unemployment benefits, to reduce or 

avoid any payment required from an employer, 

or to cause an overpayment of unemployment 

benefits. The penalty is $500 or 50 percent of 

the value of the overpaid or reduced unemployment benefits or any payment required, 

whichever is greater.

Coverage. Employment in a personal care 

assistance provider agency by an immediate 

family member of a recipient of personal care 

assistance who provides the direct care to the 

recipient through the personal care assistance 

program is excluded from coverage.

The term “staffing service” is defined as an 

employer whose business involves employing individuals directly for the purpose of 

furnishing temporary-assignment workers to 

clients of the staffing service.

Contracts obtaining a taxpaying employer’s workforce must include coverage of corporate officers for the duration of the contract 

(effective May 16, 2010).

Extensions and special programs. A special 

State extended unemployment insurance 

program is established that pays benefits to 

applicants not qualifying under the Federal–

State Extended Benefits (EB) Program solely 

because of not meeting the earnings requirement of at least 40 times the applicants’ weekly benefit amount. All other requirements 

under the Federal–State EB program must 

be met for a person to be eligible for special 

State extended unemployment insurance benefits. Special State extended unemployment 

insurance benefits are payable in the same 

amounts, for the same duration, and for the 

same period as provided for under the Federal–State EB program, except the maximum 

amount is reduced by the amount of the special State emergency unemployment compensation. Special State extended unemployment 

insurance benefits are payable from the trust 

fund. The special State extended unemployment insurance program is effective June 30, 

2010, and expires on March 26, 2011, and no 

benefits may be paid under this program for a 

week that begins after that date.

Notwithstanding the June 30, 2010, expiration of the special State extended unemployment compensation program, if an 

applicant has filed for special State extended 

unemployment compensation for a week beginning prior to June 30, 2010, but has not 

exhausted the maximum amount available, 

the applicant may continue to receive special 

State extended unemployment compensation 

up to the determined maximum. This provision expires March 26, 2011, and no benefits 

may be paid under this program for a week 

that begins after that date.

Financing. The special State extended unemployment insurance benefits must not be 

used in computing the future unemployment 

insurance tax rate of a taxpaying employer, 

and they must not be charged to the reimbursing account of government or nonprofit 

employers (effective June 30, 2010, and expires March 26, 2011).

The tax rate provisions have been amended 

by providing that the base tax rate of 0.4 percent will be applicable if the trust fund is less 

than 0.55 percent but has a positive balance. 

Additionally, a new base tax rate of 0.5 percent will be applicable if the trust fund has 

a negative balance and is borrowing from the 

Federal unemployment trust fund in order to 

pay unemployment benefits.

The provisions regarding the falling trust 

fund adjustment to the base tax rate have been 

deleted. 

The computation of the tax rate changed 

for new taxpaying employers in an industry 

with a high experience rating who do not 

qualify for an experience rating from 8.0 percent plus the applicable base tax rate and any 

additional assessments to the tax rate for new 

taxpaying employers not in a high-experience-rating industry or the tax rate computed 

to the nearest one-hundredth of a percent for 

all employers in an industry with a high experience rating plus the applicable base tax rate 

and any additional assessments, whichever is 

greater.

The 25-percent surcharge on voluntary 

contributions is cancelled for calendar years 

2011, 2012, and 2013.

The requirement that a State or political 

subdivision file a notice of election to become 

a taxpaying employer within 30 calendar days 

following January 1 of a calendar year is removed. The requirement that a State or political subdivision file a notice terminating the 

election to become a taxpaying employer no 

later than 30 calendar days before the beginning of the calendar year is removed. Instead, 

after the notice has been filed, the election or 

termination is effective at the beginning of 

the next calendar quarter. (Effective November 30, 2010.)

The requirement that a nonprofit organization file a notice of election to become a 

taxpaying employer no later than 30 calendar 

days before January 1 of any calendar year is 

removed. Instead, once a notice of election is 

filed, the election is effective at the beginning 

of the next calendar quarter. A nonprofit organization electing to become a reimbursing 

employer will continue to be liable for reimbursements until it files a notice terminating 

its election. The termination notice must be 

filed before the beginning of the calendar 

quarter during which the termination is to be 

effective. (Effective November 30, 2010.)

Monetary entitlement. If an applicant establishes a new benefit account within 39 weeks 

of the expiration of the benefit year on a prior 

benefit account, notwithstanding other provisions of law, the weekly benefit amount on the 

new benefit account will not be less than 80 

percent of the weekly benefit amount on the 

prior benefit account (applicable to benefit ac-
Unemployment Insurance, 2010

48  Monthly Labor Review • January 2011

counts effective on or after May 16, 2010, and 

expires on (1) the effective date of any Federal 

legislation allowing continued collection of 

Federal emergency unemployment compensation, notwithstanding the applicant qualifying for a new regular State benefit account, or 

(2) June 30, 2011, whichever is earlier).

Nonmonetary eligibility. Employment is not 

considered suitable if the employment is with 

a staffing service and less than 45 percent of 

the applicant’s wage credits are from a job assignment with the client of a staffing service. 

A job assignment with a staffing service is 

considered suitable only if 45 percent or more 

of the applicant’s wage credits are from job 

assignments with clients of a staffing service 

and the job assignments meet the definition 

of suitable employment. Actively seeking a 

suitable job assignment or other employment 

with a staffing service is considered actively 

seeking suitable employment.

Overpayments. Individuals who received 

unemployment benefits in 2009 shall not be 

determined overpaid because of receipt of vacation pay in 2009 that was earned in 2008 

under a collective bargaining agreement with 

an employer located in Hibbing that had a 

layoff in May 2009 of over 400 workers (effective May 16, 2010).

Mississippi

Financing. The computation of the “cost 

rate criterion” will be adjusted only through 

annual computations and additions of future 

economic cycles.

For calendar-year 2010, no employer’s 

unemployment contribution rate shall be less 

than 0.4 percent (previously 0.1 percent). Beginning with calendar-year 2011, the general 

experience rate in no event shall be less than 

0.2 percent. For any year that the general experience rate computes as an amount less than 

0.2 percent, the general experience rate shall 

be established at 0.2 percent.

During years that the Workforce Enhancement Training contribution is in effect, 

instead of paying a 2.7-percent tax rate, each 

employer newly subject to the contribution 

shall be assigned a tax rate of 2.4 percent, to 

which will be added the 0.3-percent Workforce Enhancement Training contribution. 

Workforce Enhancement Training contributions must be deposited into the Mississippi 

Department of Employment Security clearing account and transferred within 2 business 

days to the Workforce Enhancement Training 

Fund holding account. Any Workforce Enhancement Training contribution transaction 

not honored by a financial institution will be 

transferred back to the clearing account out of 

funds in the Workforce Enhancement Training contribution holding account.

Beginning January 1, 2010, the required 

Workforce Enhancement Training contribution is suspended if the insured unemployment rate (IUR) exceeds an average of 5.5 

percent for the 3 consecutive months immediately preceding the effective date of the 

new rate year, and shall remain suspended 

throughout the duration of that rate year. 

Such suspension shall continue until such 

time as the 3 consecutive months immediately 

preceding the effective date of any subsequent 

rate year have an average IUR of less than 4.5 

percent. All collections due or accrued prior 

to any suspension of the Workforce Enhancement Training Fund will be collected on the 

basis of the law at the time the contributions 

accrued, regardless of when they are actually 

due or collected.

New employers and employers meeting 

certain criteria are permitted to participate in 

the Mississippi Level Payment Plan. Employers electing to participate pay contributions 

according to the Mississippi Level Payment 

Plan pay schedule instead of doing so on or 

before the last day of the month after each 

calendar quarter.

The taxable wage base increases from 

$7,000 to $14,000 for calendar-year 2011 and 

thereafter.

The contribution rate for new employers decreases from 2.7 percent to 2.4 percent 

through December 31, 2010. Beginning January 1, 2011, the new employer rate shall be 

1.0 percent for the first year of liability, 1.1 

percent for the second year of liability, and 1.2 

percent for the third and subsequent years of 

liability; however, once an employer’s experience rating account has been chargeable for 

12 consecutive calendar months ending on 

the most recent computation date, the employers’ rates shall be determined on the basis 

of their experience.

Beginning on January 1, 2010, the 

0.3-percent reduction in contribution rates 

for employers whose assigned contribution 

rate equals or is less than 5.4 percent is eliminated. The table used to reduce contribution 

rates is removed.

The Workforce Enhancement Training 

contribution shall be assessed at a rate of 0.3 

percent through December 31, 2010. In calendar year 2011, and each year thereafter, the 

Workforce Enhancement Training contribution shall be assessed at a rate of 0.15 percent. 

Training contributions shall be reduced as 

necessary to prevent any employer from having a combined rate greater than 5.4 percent. 

For rate years beginning January 1, 2010, 

Workforce Enhancement Training contributions are suspended if the IUR exceeds an 

average of 5.5 percent for the 3 consecutive 

months immediately preceding the effective 

date of the new rate year, and shall remain 

suspended throughout the duration of that 

rate year. The suspension continues until the 

3 consecutive months immediately preceding 

the effective date of any subsequent rate year 

have an average IUR of less than 4.5 percent.

The definition of “size of fund index” 

(SOFI) is modified and, beginning January 1, 

2010, the target SOFI will be fixed at 1.0. If 

the IUR exceeds a 4.5-percent average for the 

most recent completed July-to-June period, 

the target SOFI will be 0.8 and remain at 0.8 

until the computed SOFI equals 1.0 or the 

average IUR falls to 4.5 percent or less for any 

July-to-June period. If the IUR falls below 2.5 

percent for any July-to-June period, the target 

SOFI shall be 1.2 until the computed SOFI

is equal to or greater than 1.0, or the IUR is 

equal to or greater than 2.5 percent, at which 

point the target SOFI returns to 1.0.

After calendar year 2010, the general experience rate shall in no event be less than 0.2 

percent. For any year that the general experience rate is computed as an amount less than 

0.2 percent, such rate shall be established at 

0.2 percent.

The amount that a reimbursing political 

subdivision may elect to pay the fund shall 

equal 0.25 percent of taxable wages, effective 

January 1, 2011 (previously, 0.5 percent) in 

order that the political subdivision be relieved 

of benefit charges that would not have been 

charged had the political subdivision opted to 

be contributory.

The rate that political subdivisions electing 

to pay contributions shall pay changes from 

2.0 percent of taxable wages to 1.0 percent, 

effective January 1, 2011.

The amount of the surety bond that a nonprofit organization electing to reimburse the 

fund must file shall be equal to 1.35 percent 

of the organization’s taxable wages paid for 

employment (previously, 2.7 percent), effective January 1, 2011.

Missouri

Extensions and special programs. The expiration date of an “on” indicator week based on 

the seasonally adjusted total unemployment 
Monthly Labor Review • January 2011  49

rate (TUR) for the Federal–State Extended 

Benefits (EB) Program is changed from December 5, 2009, to the week ending 4 weeks 

prior to the last week of unemployment for 

which 100-percent Federal sharing is available under the Recovery Act, or March 3, 

2011, whichever should occur first.

The expiration date of a “high-unemployment period” based on the seasonally adjusted 

TUR for the Federal–State EB program is 

changed from December 5, 2009, to the week 

ending 4 weeks prior to the last week of unemployment for which 100-percent Federal 

sharing is available under the Recovery Act, 

or March 3, 2011, whichever should occur 

first.

The maximum number of calendar weeks 

payable under the work-sharing program increases from 26 to 52.

Nebraska

Administration. Each professional employer 

organization (PEO) currently operating in the 

State must register with the Nebraska Department of Labor by June 28, 2012. As of January 

1, 2012, any PEO not operating in the State 

must register with the department prior to 

initiating operation within the State. Within 

180 days after the end of the PEO’s fiscal year, 

the PEO must renew its registration with the 

department. Any PEO registered in another 

State that becomes aware that an existing client not based in Nebraska has employees and 

operations in Nebraska shall either decline 

to provide professional employer services for 

those employees or notify the department 

within 5 business days of its knowledge of this 

fact and file a limited registration application, 

or a full registration if there are more than 50 

covered employees. 

The department must maintain a list of 

registered PEOs and make it available to the 

public. Other than the list, all records, reports, 

and other information regarding the PEOs are 

not open to public inspection.

Financial requirements for PEOs have 

been established.

A majority of client employees must be 

covered employees in the State before a PEO

can enter into an agreement, and before requirements for the agreement are established.

The Nebraska Department of Labor must 

prepare, maintain and publish a list of delinquent taxpayers who owe in excess of $20,000 

for which a notice of lien has been filed. The 

list will not include any taxpayer who has 

not exhausted or waived appeal rights from a 

final balance of tax liability. The list will include the name and address of the delinquent 

taxpayer, the type of tax or fee due, and the 

amount of tax or fee due, including interest, 

penalties, and cost. The list will be updated 

quarterly. The delinquent taxpayer’s name will 

be removed from the list within 15 days after 

entering a payment agreement or upon full 

payment of debt. A 30-day written notice to 

delinquent taxpayers must be provided prior 

to the taxpayers’ disclosure on the list.

Coverage. The term contractor is defined, and 

an individual performing construction labor 

is presumed to be an employee and not an 

independent contractor unless the individual 

meets certain specific criteria.

It is a violation for a contractor to designate an individual as an independent contractor who would be properly classified as 

an employee. The Nebraska Department of 

Labor must

• establish a hotline and Web site to report 

suspected violations;

• timely investigate all credible reports of 

suspected violations;

• upon finding that a contractor has violated 

the Employee Classification Act, have 

the Commissioner share any violations 

with the Department of Revenue and the 

Workers’ Compensation Court; and

• provide an annual report to the legislature.

A $500 fine is assessed for each misclassified individual for the first offense; subsequent offenses are $5,000 per misclassified 

individual. 

The contractor of any contract with the 

State or political subdivision must follow the 

provisions of the act; violations are subject to 

contract rescission. Contractors must post a 

notice containing Employee Classification 

Act information at the jobsite or place of 

business.

Extensions and special programs. Notwithstanding any other provisions of the law, during an extended benefits period, the Governor 

may provide for the payment of emergency 

unemployment compensation pursuant to the 

Recovery Act, as amended, or any substantially similar Federal unemployment compensation paid entirely from Federal funds to 

individuals prior to the payment of extended 

benefits.

All individuals who have exhausted all 

rights to regular unemployment compensation, and who are enrolled in and making 

satisfactory progress in a State-approved 

training program or in a job training program 

authorized under the Workforce Investment 

Act of 1998, will be entitled to an additional 

amount of benefits equal to up to 26 times 

their average weekly benefit amount for the 

most recent benefit year. Such training programs will prepare individuals for entry into 

a high-demand occupation who have been 

separated from a declining occupation or who 

have been involuntarily separated from employment because of a permanent reduction 

in operations at their place of employment.

Financing. Benefits paid for the extension 

of training will not be charged to the experience account of any employer.

Monetary entitlement. “Base period” is defined to mean the first four of the last five 

completed calendar quarters immediately preceding the first day of an individual’s benefit 

year. (Previously, “base period” meant the last 

four completed calendar quarters immediately preceding the first day of an individual’s 

benefit year, except that the commissioner 

could prescribe by rule and regulation that 

“base period” means the first four of the last 

five completed calendar quarters immediately 

preceding the first day of an individual’s benefit year.)

For benefit years beginning on or after July 

1, 2011, if individuals would not be monetarily 

eligible for benefits on the basis of wages paid 

during the first four of the last five completed 

calendar quarters, then their eligibility will be 

determined on the basis of an alternative base 

period consisting of the last four completed 

calendar quarters immediately preceding the 

first day of the individuals’ benefit year.

Effective with benefit years beginning 

on or after July 1, 2011, the minimum baseperiod wages needed to monetarily qualify 

change from $2,761 in the base period, $800 

in each of two quarters, and $800 in the high 

quarter, to $3,770 in the base period, $1,850 in 

the high quarter, and $800 in a second quarter.

Nonmonetary eligibility. Individuals will not 

be deemed unavailable for work, deemed to be 

failing to engage in an active search for work, 

or disqualified from receiving benefits for refusing to apply for available, full-time work or 

accept full-time work solely because they are 

seeking only part-time work if a majority of 

the weeks of work in their base period include 

part-time work.

“Seeking only part-time work” means 

seeking less than full-time work having com-
Unemployment Insurance, 2010

50  Monthly Labor Review • January 2011

parable hours to the individual’s part-time 

work in the base period, except that the individual must be available for work at least 20 

hours per week.

There was an increase in the disqualification period for leaving work voluntarily without good cause, and the period is now defined 

as the week in which the individual left work 

and the 13 weeks (previously, 12 weeks) immediately following such week. 

For a person who leaves work voluntarily 

for the sole purpose of accepting a better job 

but does not actually accept that job, the disqualification period changed to the week the 

individual left and the 2 weeks (previously, 

not more than 1 week) immediately following 

such week.

New Hampshire

Extensions and special programs. A worksharing program is created. Employers are 

required to submit an agreement that meets 

specific criteria in order to be approved by 

the commissioner of the New Hampshire 

Department of Employment Security. The 

criteria are the following:

• The reduction of hours may not be less 

than 10 percent or more than 50 percent 

and must be spread equally among employees in the unit.

• Health benefits must continue to be provided, retirement contributions shall be 

made on the basis of hours worked, and 

the effect of reduction on other fringe benefits must be identified.

• The agreement shall not last more than 

26 weeks and must include start and end 

dates. 

The amount of the work-sharing benefit 

shall be the weekly benefit amount multiplied by the percentage of the work reduction, rounded down; it will be reduced by the 

amount of any remuneration received from 

any work for a non-work-sharing employer 

that exceeds 30 percent of the maximum 

benefit rate in effect, and may not exceed the 

maximum benefit amount. Individuals meeting the criteria will be eligible for extended 

benefits.

Financing. Work-sharing benefits shall 

be charged to the employer. Benefits paid to 

individuals for a compelling family reason, 

such as voluntarily leaving to accompany a 

spouse—because of a change in the location 

of the spouse’s employment—to a place from 

which it is impractical to commute, or leaving 

because of the illness or disability of a member of the individuals’ immediate family, shall 

be charged against the fund and shall not be 

charged to the account of an individual employer.

Nonmonetary eligibility. No later than the 

last day of school each year, the superintendent is required to notify in writing the educational support personnel and noncertified 

school district employees who have completed 

their probationary period of the intent to continue or not to continue that employment into 

the next school year. “Educational support 

personnel” means teacher’s aides; food-service 

staff; custodial and maintenance staff; security 

staff; health care staff; library, computer, and 

audiovisual staff; clerical and administrative 

staff; and transportation staff employed by a 

school district.

New Jersey

Appeals. The period for filing an appeal to 

the Board of Review is extended to 20 (previously 10) days after the date of notification or 

mailing of the tribunal’s decision (applicable 

for decisions made on or after December 2, 

2010).

Beginning on December 2, 2010, the 

regulations may provide for a schedule of 

registration fees for agents representing parties, except that, if a schedule of fees is set, 

the amount collected in fees shall not exceed 

the amount determined by the director of the 

Division of Unemployment and Temporary 

Disability Insurance to be necessary for the 

implementation of certain related provisions.

When a client or agent fails to appear at a 

hearing without requesting a postponement, 

no further hearings will be scheduled, unless it 

is satisfactorily demonstrated that such failure 

to appear was due to circumstances beyond 

the control of the client or agent.

Financing. Nonfraud unemployment benefit overpayments shall not be charged to the 

employer’s account if caused by an error of the 

division and not by any error of the employer. 

The fine changes to $100 or 25 percent of the 

amount fraudulently withheld for employers, 

their officers or agents, or any other person 

for knowingly making false statements/representations or knowingly failing to disclose a 

material fact to prevent or reduce payment of 

benefits, whichever is greater. (Previously, the 

fine was $100.)

Overpayments. If an employer fails to timely respond to the request for information, the 

representative designated by the director, or 

“deputy,” shall rely on information from an affidavit with respect to wages and time worked, 

and if such affidavit is nonfraudulently erroneous, the claimant shall be liable for any 

refund that resulted in benefit overpayments 

prior to the receipt of the employer’s reply. 

(Previously, a refund liability was not imposed 

on the claimant.)

Persons are now liable for any nonfraud 

unemployment benefit overpayments that occurred before the finding of the overpayment. 

(Previously, persons were not liable for such 

overpayments.)

The period for filing an appeal from an 

overpayment determination notice is extended to 20 (previously 10) calendar days after 

delivery or mailing of the determination notification to the last known address (applicable 

to any determination other than an initial 

determination made on or after December 2, 

2010). 

Notwithstanding any other provisions of 

law and notwithstanding the actual fund reserve ratio, for fiscal year 2011, column C of 

the Experience Rating Tax Table is required 

to be used to determine the contribution rate 

for employers liable to pay contributions. 

Column C provides that rates range from 

0.5 percent to 3.6 percent for positive-reserve 

employers and from 5.1 percent to 5.8 percent 

for deficit-reserve employers. During fiscal 

year 2011, the tax rate for new employers shall 

be 2.8 percent.

New Mexico

Financing. The use of Contribution Schedule 0 (zero) is required for assigning each employer’s contribution rate from July 1, 2010, 

through December 31, 2010. The use of Contribution Schedule 1 is required for assigning 

each employer’s contribution rate from January 1, 2011, through December 31, 2011. The 

use of one of Contribution Schedules 0–6 is 

required for each calendar year after 2011, 

except as otherwise provided, to assign each 

employer’s rate. Use

• Contribution Schedule 0 if the fund 

equals at least 2.3 percent of the total payrolls (this is the most favorable schedule: 

its rates range from 0.03 percent to 5.40 

percent),
Monthly Labor Review • January 2011  51

• Contribution Schedule 1 if the fund equals 

less than 2.3 percent but not less than 1.7 

percent of the total payrolls,

• Contribution Schedule 2 if the fund equals 

less than 1.7 percent but not less than 1.3 

percent of the total payrolls,

• Contribution Schedule 3 if the fund equals 

less than 1.3 percent but not less than 1.0 

percent of the total payrolls,

• Contribution Schedule 4 if the fund equals 

less than 1.0 percent but not less than 0.7 

percent of the total payrolls,

• Contribution Schedule 5 if the fund equals 

less than 0.7 percent but not less than 0.3 

percent of the total payrolls, and

• Contribution Schedule 6 if the fund equals 

less than 0.3 percent of the total payrolls 

(the least favorable schedule, with rates 

ranging from 2.7 percent to 5.40 percent).

The balance of the State unemployment 

trust fund, including all accrued earnings 

credited to such fund, is transferred to the 

unemployment compensation fund.

Monetary entitlement. The weekly benefit 

amount is changed to 53.5 percent (previously, 60.0 percent through June 30, 2011) of the 

average weekly wage for insured work in the 

base-period quarter in which total wages were 

highest. The weekly benefit amount may not 

be more than 53.5 percent (previously, 10.0 

percent through June 30, 2011) of the State’s 

average weekly wage for all insured work.

New York

Financing. The $750-per-employee penalty 

collected from employers that do not permit 

the return of employees to their prior position 

upon conclusion of an industrial-controversy 

strike and to which the employer has certified in writing are permitted to return shall 

be paid into the unemployment insurance 

control fund.

Nonmonetary eligibility. In the case of an 

industrial-controversy strike, unemployment 

compensation benefits shall not be suspended 

if the commissioner of the New York State 

Department of Labor determines that the 

claimants are not participating in the industrial controversy and

• are not employed by an employer that is 

involved in the industrial controversy that 

caused their unemployment, or 

• are not in a bargaining unit involved in the 

industrial controversy that caused their 

unemployment.

North Carolina 

Nonmonetary eligibility. No substitute 

teacher or other substitute school personnel will be considered unemployed for days 

or weeks when not called to work unless the 

individual is or was employed as a full-time 

substitute during the period for which the 

individual is requesting benefits. For the purposes of this provision, “full-time substitute” 

is defined as a substitute employee who works 

more than 30 hours a week on a continual 

basis for a period of 6 months or more. (Previously, the law excluded from the definition 

of “employment” service performed by a substitute teacher or other substitute employee 

for a public, charter, or private school unless 

the individual was employed as a full-time 

substitute. An individual was employed as a 

full-time substitute when employed to work 

at least 30 hours per week over at least 6 consecutive months of a school year.)

Lawmakers have repealed the provision 

excluding from the definition of “employment” the performance of extra duties for 

a public, charter, or private school, such as 

coaching athletics, acting as a choral director, 

or performing other extra duties.

Ohio

Extensions and special programs. The effective dates of the optional extended benefits 

(EB) “on” indicator based on the seasonally 

adjusted total unemployment rate (TUR) have 

been modified by providing that the provisions cease to be effective on the close of the 

last day of the week ending 4 weeks prior to 

the last week for which 100-percent Federal 

sharing is authorized by Federal law. (Previous language stated that the provisions cease 

to be effective either on December 6, 2009, or 

at the close of the last day of the week ending 3 weeks prior to the last week for which 

Federal sharing is authorized by Federal law, 

whichever is later; it also stated that EB were 

not payable beyond May 29, 2010.)

Oklahoma

Extensions and special programs. The Shared 

Work Unemployment Compensation Program is created. An approved shared work 

plan is required to reduce the normal weekly 

hours of work for an employee in an affected 

unit by not less than 20 percent and not more 

than 40 percent. An employer is required to 

maintain the fringe benefits of each employee 

in the affected unit at the benefit level in effect before implementation of the shared 

work plan. An employer is prohibited from 

implementing a shared work plan to subsidize 

seasonal workers or employees who work less 

than 32 hours per week. Employers with an 

experience tax rate of 5.4 percent or greater 

for a calendar year are ineligible to participate 

in the Shared Work Unemployment Compensation Program for that calendar year. 

Shared work benefits are limited to 26 weeks 

during the 12 consecutive calendar months 

that the shared work plan is in effect. The 

Oklahoma Employment Security Commission is permitted to terminate a shared work 

plan for good cause. The expiration date is the 

last day of the 12th full calendar month after 

the effective date of the shared work plan. No 

shared work benefit payment shall be made 

under any shared work plan for any week that 

commences before January 1, 2011. 

Pennsylvania

Coverage. The Construction Workplace 

Fraud Act is renamed the Construction 

Workplace Misclassification Act and specifies 

criteria for the determination of independent 

contractors in the construction industry for 

unemployment compensation and workers’ 

compensation. An individual performing services in the construction industry for remuneration is an independent contractor only if

• the individual has a written contract to 

perform such services,

• the individual is free from control or direction over performance of such services 

both under the contract of service and in 

fact, and

• the individual is customarily engaged in 

an independently established trade, occupation, profession, or business rendering 

such services.

An employer, or an officer or agent, is in 

violation of the Construction Workplace 

Misclassification Act and will be subject to 

penalties, remedies, and other action if the 

employer, officer, or agent fails to properly 

classify individuals as employees for the purposes of the unemployment compensation 

law and fails to pay contributions, reimbursements or other amounts required to be paid 

under such law. Criminal penalties include a 

misdemeanor of the third degree for a first 
Unemployment Insurance, 2010

52  Monthly Labor Review • January 2011

offense and a misdemeanor of the second 

degree for any subsequent offense. Negligently failing to properly classify individuals 

is a summary offense and, upon conviction, a 

fine of not more than $1,000 must be paid. 

The secretary of the Department of Labor 

and Industry may assess and collect civil penalties of not more than $1,000 for the first 

violation and not more than $2,500 for each 

subsequent violation for persons violating 

the act, which will be paid into the special 

administration fund of the unemployment 

compensation law.

Rhode Island

Financing. Lawmakers have removed the 

provision requiring that a surtax of 0.3 percent of taxable wages be levied during years 

when the amount in the employment security 

fund available for benefits, net of obligations 

owed to the Federal Government, is less than 

zero at the end of the second month of any 

calendar quarter.

The job development assessment increases 

from 0.21 percent to 0.51 percent beginning 

with the 2011 tax year.

Beginning January 1, 2011, 0.02 percent 

of the job development assessment will be 

used to support necessary core services in the 

unemployment insurance and employment 

services programs, and 0.3 percent of the job 

development assessment will be deposited 

into a restricted receipt account to be used 

solely to pay the principal and/or interest due 

on Title XII advances; however, if the Title 

XII advances are repaid through a State revenue bond or other financial mechanism, the 

funds in the account may be used to pay the 

principal and/or interest that has accrued on 

the debt.

Monetary entitlement. The minimum dependents’ allowance increases from $10 to $15 

per dependent, and the total dependents’ allowance payable to any claimant is capped at 

$50 or 25 percent of the individual’s weekly 

benefit amount, whichever is greater. (Effective January 1, 2011.)

Nonmonetary eligibility. Effective January 1, 

2011, no individuals will be disqualified from 

receiving benefits due to separation from employment if the individuals quit

• because of the need to accompany their 

spouse to a place from which it is impractical for them to commute (because of a 

change in the location of their spouse’s 

employment); or

• because of the need to care for a member 

of the individuals’ immediate family because of illness or disability.

South Carolina

Administration. The Division of Employment Service and the Division of Unemployment Compensation are created within the 

Department of Employment and Workforce.

Appeals. A mandatory retirement age of 72 

is established for members of the Employment and Workforce Appellate Panel, and 

limitations are placed on candidates seeking 

positions on the panel.

Financing. The employer experience rating 

system is changed from a reserve-ratio to a 

benefit-ratio system. For the period of January 1, 2011, through December 31, 2013, the 

benefit ratio is calculated annually to the sixth 

decimal place on July 1 by dividing the average 

of all benefits charged during the 40 calendar 

quarters (10 years) preceding the calculation 

date by the employer’s average taxable payroll during the same period. Beginning with 

calendar year 2014, the benefit ratio will be 

determined by using 12 calendar quarters (3 

years) of data or with any available data if the 

employer has fewer than 12 quarters of data. 

(Previously, all prior benefits and wages were 

used.)

The average required rate needed to pay 

benefits and achieve solvency targets is determined by dividing the income needed to pay 

benefits plus the income needed to reach the 

solvency target by the estimated taxable wages 

for the calendar year. This rate will be used in 

determining each employer’s base rate.

For each calendar year the trust fund is 

in debt status, the Department of Employment and Workforce is required to estimate, 

with specified procedures, the amount of income needed to pay benefits for that year, the 

amount necessary to avoid automatic FUTA

(Federal Unemployment Tax Act) credit reductions, and the amount necessary to repay 

all outstanding Federal loans within 5 years; 

interest costs are required to be determined 

concurrently. After the trust fund returns to 

solvency, the department is required to promulgate regulations regarding the income 

needed to pay benefits each year and to return 

the trust fund to an adequate target level. (An 

adequate target level for the fund means an 

average high-cost multiple of 1.) 

A system is established to group employers 

into a 20-class array on the basis of their benefit ratios. The department must list all employers by order of benefit ratio, from the lowest benefit ratio to the highest benefit ratio. 

The employers must be grouped into classes 

ranked 1 through 20. Each class must contain 

approximately 5 percent of the total taxable 

wages (excluding reimbursable wages) that 

were paid in covered employment during the 

four completed calendar quarters immediately 

preceding the computation date. The rate for 

class 1 must be zero and that for class 20 must 

be at least 5.4 percent. If the benefit rate for 

class 20 exceeds 5.4 percent, the rate for each 

preceding class shall be equal to 90 percent 

of the rate calculated for the succeeding class, 

except that class 12 shall be set at 25 percent 

of the rate calculated for class 20. If the computed rate for class 20 is less than 5.4 percent, 

the rate for class 20 shall be 5.4 percent and

• the contribution rate for class 12 must be 

calculated by multiplying by 20 the average required rate needed to pay benefits 

and to achieve solvency, subtracting 5.4 

percent, and then dividing by 19;

• the contribution rate for classes 11 through 

1 must be equal to 90 percent of the rate 

for the succeeding class, provided the rate 

for class 1 shall be 0;

• the contribution rate for class 13 must be 

equal to 120 percent of the rate calculated 

for class 12; and

• the contribution rate for class 19 must be 

set at an amount that allows for average 

contributions, beginning at class 18 and 

ending with class 14, that are equal to 90 

percent of the preceding class. 

If an employer qualifies for two classes, the 

employer will be afforded the lower rate. Employers with identical ratios will be assigned 

to the same class. Employers with less than 12 

consecutive months of coverage must have a 

base rate of at least class 13.

In any calendar year in which the trust 

fund is insolvent, the State shall impose additional surcharges on all employers to pay interest on the outstanding debt. The surcharge 

is calculated by dividing the estimated interest 

by the taxable payroll rounded up to the next 

one-hundredth of one percent.

The taxable wage base changes from 

$7,000 to $10,000 for calendar year 2011. For 

calendar years 2012–14, the wage base will be 

$12,000. Beginning with calendar year 2015, 

the wage base will be $14,000. 
Monthly Labor Review • January 2011  53

Monetary entitlement. The requirement for 

qualifying monetarily (see the definition of 

“insured worker”) changes to $4,455 in the 

base period and $1,092 in the high quarter 

(from $900 in the base period and $540 in the 

high quarter). 

The minimum weekly benefit amount increases from $20 to $42. 

Effective June 1, 2010, if individuals 

would not be eligible for benefits because of 

the use of a base period consisting of the first 

four of the last five completed calendar quarters, then their eligibility shall be determined 

by use of a base period that includes the last 

four completed calendar quarters. 

Nonmonetary eligibility. Individuals shall 

not be denied from receiving benefits under 

provisions relating to availability for work, active search for work, or refusal to accept work 

solely because they are seeking only part-time 

work if a majority of the weeks of work in 

their base period include part-time work.

Individuals shall not be disqualified from 

receiving benefits due to separation from 

employment if that separation is for a “compelling family reason.” “Compelling family 

reason” means 

• domestic violence, verified by documentation, that causes the individuals to reasonably believe that continued employment 

would jeopardize their safety or any immediate family member’s safety; 

• the illness or disability of a member of the 

individuals’ immediate family; or 

• the need for the individuals to accompany 

their spouse—because of a change in location of the spouse’s employment—to 

a place from which it is impractical for 

them to commute. 

South Dakota

Extensions and special programs. Claimants 

who have exhausted all rights to regular unemployment benefits and are unemployed, 

and who are enrolled in and making satisfactory progress in a State-approved training 

program or a job training program authorized 

under the Workforce Investment Act of 1998, 

will be entitled to an additional amount of 

benefits equal to 26 times their average weekly benefit amount for the most recent benefit 

year, less any deductible earnings. Such training program must prepare claimants for entry 

into a high-demand occupation who have 

been separated from a declining occupation 

or have been involuntarily and indefinitely 

separated from employment because of a permanent reduction of operations at the claimants’ place of employment.

Financing. The taxable wage base increases 

from $9,500 to $10,000 for calendar year 

2010. It is $11,000 for calendar year 2011, 

$12,000 for calendar year 2012, $13,000 for 

calendar year 2013, $14,000 for calendar year 

2014, and $15,000 for calendar year 2015 and 

thereafter.

For calendar year 2010 and thereafter, the 

maximum contribution rate increases from 

8.50 percent to 9.50 percent. The minimum 

contribution rate remains at 0.00 percent. The 

increased contribution rates apply to and are 

retroactive to taxable wages paid on and after 

January 1, 2010.

Employer’s rates will incrementally increase if on the last day of any calendar quarter the amount in the unemployment compensation fund, including amounts receivable 

as Federal reimbursements that are due to the 

State for shareable benefit payments, is less 

than $11 million. The rate increases range 

from 0.1 percent when the balance is greater 

than or equal to $10.5 million but less than 

$11 million, to 1.5 percent when the balance 

is less than $5.5 million.

When tax rates increase because of a reduction in the unemployment compensation 

fund, the maximum contribution rate payable 

by any employer, including the adjustment 

percentage, is 12 percent (previously, 10.5 

percent). The increased contribution rates may 

not exceed 1.0 percent for taxable wages paid 

for calendar year 2010 and may not exceed 

0.75 percent for taxable wages for calendar 

year 2011. Effective January 1, 2012, any rate 

increase based on the reduction of the unemployment compensation fund will remain in 

effect for four consecutive calendar quarters. 

The rate for the second, third, and fourth 

quarters may increase on the basis of the fund 

balance on the last day of the immediately 

prior quarter, but may not decrease from the 

prior quarter during the aforementioned four 

consecutive quarters. The contribution rates 

apply to and are retroactive to taxable wages 

paid on and after January 1, 2010.

Benefits paid under the provision for parttime workers and the provision for additional 

benefits for “exhaustees” are excluded from 

being charged. 

Nonmonetary eligibility. A claimant shall 

not be denied regular unemployment benefits 

relating to availability for work, active search 

for work, or refusal to accept work, solely because of seeking only part-time work, if it is 

determined that a majority of the weeks of 

work in his/her base period were for less than 

full-time work. The term “seeking only parttime work” is defined to mean seeking work 

that has hours comparable to the individual’s 

part-time work experience in the base period. 

Tennessee

Administration. A refund of State taxes 

claimed by a taxpayer in the amount of $200 

or more may be used to offset the taxpayer’s 

debts of an overpayment of unemployment 

compensation benefits or amounts owed to 

the unemployment compensation fund (applies to any claim for a refund filed with the 

Department of Revenue on or after July 1, 

2009, that has not been finally determined).

Nonmonetary eligibility. Benefits will not 

be reduced for or denied to any otherwise 

eligible claimant because of such claimant’s 

enrollment in an institution of higher education.

Utah

Administration. The Utah Department 

of Workforce Services must submit an annual report to the Workforce Employment 

Advisory Council and to the legislature’s 

Workforce Services and Community and 

Economic Development Interim Committee 

by November 30, 2010, and annually thereafter. The report must address the impact of 

the amendment regarding the use of the base 

period consisting of the last four completed 

calendar quarters and the amendment regarding the unemployment insurance trust 

fund. The Interim Committee must make 

recommendations to the legislature from the 

annual report that may include modifications 

or the repeal of those amendments.

Some of the penalties for persons and officers or agents of an employing unit who are 

guilty of unemployment insurance fraud are 

as follows:

• class B misdemeanor when the value of 

the money is less than $500 (previously 

$300),

• class A misdemeanor when the value of 

the money is or exceeds $500 (previously 

$300) but is less than $1,500 (previously 

$1,000), and

• third-degree felony when the value of the 

money is or exceeds $1,500 (previously 

$1,000) but is less than $5,000.
Unemployment Insurance, 2010

54  Monthly Labor Review • January 2011

Monetary entitlement. If individuals would 

not be eligible for benefits because of the use 

of a base period consisting of the first four of 

the last five completed calendar quarters, then 

their eligibility will be determined by use of a 

base period consisting of the last four completed calendar quarters (applicable for benefit years effective on or after January 2, 2011). 

Wages from the base period used to establish eligibility cannot be used to qualify a person for benefits in any subsequent benefit year.

The formula calculating the weekly benefit amount changed from one-twenty-sixth, 

disregarding any fraction of $1, of insured 

wages paid in the quarter of the base period 

with the highest wages to one-twenty-sixth 

minus $5, disregarding any fraction of $1 of 

insured wages paid in the quarter of the base 

period with the highest wages (applicable to 

benefit years beginning on or after December 

12, 2010).

The formula calculating the maximum 

weekly benefit amount payable changed from

62.5 percent of the insured average fiscal year 

weekly wage during the preceding fiscal year, 

disregarding any fraction of $1, to 62.5 percent of the insured average fiscal year weekly 

wage during the preceding fiscal year minus 

$5, disregarding any fraction of $1 (applicable 

to benefit years beginning on or after December 12, 2010).

Nonmonetary eligibility. The offset for receipt of Social Security benefits against unemployment compensation changed from 50 

percent to 0.0 percent (applicable to benefit 

years beginning on or after December 12, 

2010). (Previously, the 50-percent offset applied to benefit years ending on or before July 

1, 2011.)

Vermont

Administration. The Vermont Department 

of Labor is required to implement reemployment services and a policy that prioritizes 

claimants for such services, effective July 1, 

2010.

Extensions and special programs. An individual who has exhausted all rights to regular 

unemployment compensation, and who is 

enrolled in and making satisfactory progress 

in a State-approved training program or a job 

training program authorized under the Workforce Investment Act of 1998, shall be entitled 

to an additional amount of benefits equal to 

26 times his or her average weekly benefit 

amount for the most recent benefit year. Such 

training programs shall prepare individuals 

for entry into a high-demand occupation who 

have been separated from a declining occupation or who have been involuntarily separated 

from employment because of a permanent 

reduction in operations at their place of employment.

Financing. The taxable wage base increased 

from $10,000 to $13,000 for calendar year 

2011 and increases to $16,000 for calendar 

year 2012. After January 1, 2012, whenever 

the unemployment compensation fund has 

a positive balance and all Title XII advances 

to the State unemployment compensation 

fund have been repaid as of June 1, the taxable 

wage base shall be adjusted on January 1 of 

the following year by the same percentage as 

any increase in the State annual average wage. 

When contribution rate schedule I or III is in 

effect, the taxable wage base shall be reduced 

by $2,000 the following January 1 and shall be 

adjusted annually thereafter on January 1 of 

the following year by the same percentage as 

any increase in the State annual average wage. 

(Effective July 1, 2010.)

An employing unit failing to submit 

separation information is not relieved of 

charges for benefits before the week following the receipt of such information, effective 

July 1, 2010. Previous law provided that, if 

an employing unit fails to submit separation 

information, an employer’s experience-rating 

record shall not be relieved of charges unless 

within 30 days after notice the employer files 

an appeal from the determination and the determination is ultimately reversed. 

Monetary entitlement. The $425 maximum 

weekly benefit amount adjusts on the first day 

of the first calendar week of July by a percentage equal to the percentage change during the 

preceding calendar year in the State average 

weekly wage when the State unemployment 

compensation fund has a positive balance 

and all Title XII advances to such fund have 

been repaid as of December 31 of the last 

completed calendar year. When contribution 

rate schedule III is in effect, the maximum 

weekly benefit amount shall be adjusted on 

the first day of the first calendar week of July 

to an amount equal to 57 percent of the State 

annual average weekly wage. The maximum 

weekly benefit amount shall not increase in 

any year that Title XII advances remain unpaid. (Effective July 1, 2011.)

Individuals who elect to have Federal income tax deducted and withheld from unemployment insurance benefits shall have State 

income tax withheld at 24 percent of the 

Federal rate.

The maximum total amount of benefits 

payable (benefit entitlement) changes from 26 

times an individual’s weekly benefit amount 

to 26 times an individual’s weekly benefit 

amount or 46 percent of the total base-period 

wages paid, whichever is lesser. When an individual is discharged by the last employing 

unit for misconduct connected with work, the 

benefit entitlement is limited to the amount 

computed in the previous sentence or 23 

times the individual’s weekly benefit amount, 

whichever is lesser, provided that the individual has not already received more than 23 

weeks of benefits in the benefit year. (Effective 

July 1, 2011.) 

To be eligible to receive benefits (including short-time compensation benefits) a totally or partially unemployed individual must 

serve a 1-week waiting period during the benefit year and any extended eligibility period, 

effective July 1, 2012. The 1-week waiting period is repealed effective July 1, 2017, or when 

the unemployment compensation fund has a 

positive balance, whichever is later.

Nonmonetary eligibility. Those wages in the 

base period paid by an employing unit from 

which an individual was separated because of 

gross misconduct are cancelled (effective July 

1, 2011).

In determining if one is available for 

work during any week, an individual may be 

required to participate in reemployment services.

When discharged for misconduct from 

their last employer, individuals are disqualified 

for 6–15 (previously 6–12) weeks immediately 

following the filing of a claim (in addition to 

the waiting period).

The term “gross misconduct” means conduct directly related to the employee’s work 

performance that demonstrates a flagrant, 

wanton, and intentional disregard of the employer’s business interest, and that has a direct 

and significant impact upon the employer’s 

business interest, including but not limited to 

theft, fraud, intoxication, intentional serious 

damage to property, intentional infliction of 

personal injury, any conduct that constitutes 

a felony, or repeated incidents after written 

warning of either unprovoked insubordination or public use of profanity.

Virginia

Monetary entitlement. For claims effective 

on or after July 6, 2008, but before July 3, 
Monthly Labor Review • January 2011  55

2011 (previously July 4, 2010), the minimum 

weekly benefit amount remains at $54 and the 

maximum weekly benefit amount remains at 

$378; a total of $2,700 in the two high quarters of the base period remains the amount 

needed to monetarily qualify, and $18,900.01 

remains the minimum amount required for 

the maximum weekly benefit amount.

For claims effective on or after July 3, 

2011, the minimum weekly benefit amount 

increases from $54 to $60 and the maximum 

weekly benefit amount remains at $378, a total of $3,000 (previously $2,700) in the two 

quarters of the base period with the highest 

wages is needed to monetarily qualify, and 

$18,900.01 remains the minimum amount 

required for the maximum weekly benefit 

amount.

Overpayments. The commissioner of the 

Virginia Employment Commission is allowed 

to negotiate repayments of overpayments. The 

repayment terms may include

• deductions up to 50 percent of payable 

benefits (previously only 50 percent),

• the ability to forego the collection of the 

payable amount until the recipient has 

found employment, or

• the ability to determine and institute an 

individualized repayment plan.

Overpayments caused by administrative 

error will be collected only by an offset against 

future benefits or a negotiated repayment 

plan. However, if the individual fails to enter 

into or comply with the terms of the repayment plan, the commissioner of the Virginia 

Employment Commission may institute any 

other method of collection.

Wisconsin

Administration. Professional employer 

organizations must be registered with the 

Department of Regulation and Licensing (effective September 1, 2010).

The department must be named as a party 

in the complaint when an employing unit files 

for judicial review.

Fees and expenses assessed by the U.S. 

Secretary of the Treasury for use of the Treasury Offset Program may be withdrawn from 

the Unemployment Reserve Fund.

The maximum fine is increased from $500 

to $1,000 for anyone who

• makes a deduction from the wages of an 

employee because of liability for contributions or payments in lieu of contributions;

• refuses or fails to furnish an employee any 

notice, report, or information required by 

the statute; 

• promises to reemploy, threatens not to employ, or threatens to terminate an employee, or induces an employee to refrain from 

claiming benefits, from participating in an 

audit or investigation by the Department 

of Regulation and Licensing, or from testifying at a hearing; or

• discriminates or retaliates against an individual because the individual claims 

benefits, participates in an audit or investigation by the department, or testifies at 

a hearing.

Coverage. Neither members of an elective 

legislative body nor the judiciary of an Indian 

tribe will be considered employees.

Service by an individual to care for an ill 

or disabled family member is not considered 

employment. The term “family member” as 

defined in this provision means a spouse, parent/stepparent, child/stepchild, grandparent, 

grandchild (by birth or adoption), or domestic 

partner. (Effective December 31, 2010, with 

respect to contribution requirements, and effective for benefit years beginning on or after 

January 2, 2011, with respect to benefit eligibility.) 

Full-time work is defined as 32 or more 

hours per week, and part-time work as less 

than 32 hours per week (effective with weeks 

of unemployment beginning on or after July 

3, 2011).

Extensions and special programs. Claimants 

may receive an additional amount of benefits 

of not more than 26 times their weekly benefit 

amount for the most recent benefit year while 

enrolled in a training program. Such training 

programs will prepare individuals for entry 

into a high-demand occupation who have 

been separated from a declining occupation or 

who have been involuntarily separated from 

employment because of a permanent reduction in operations at their place of employment.

Financing. An employer that suffers physical damage to its business caused by a catastrophic event for which the employer is not 

primarily responsible, and that incurs benefit 

charges to its account for layoffs because of 

the damage, may make a voluntary contribution to increase the employer’s reserve percentage to no greater than it would have been 

had the damage not caused the employer to 

lay off its employees.

Any excess interest assessment will be 

credited to the balancing account. (Previously, 

the excess was retained in the administrative 

account.) 

Nonmonetary eligibility. Training that is approved under the Trade Act of 1974 and the 

Federal Workforce Investment Act of 1998 

has been added to the definition of approved 

training.

The department shall not deny benefits 

for any of the following reasons: (1) An individual voluntarily quits unsuitable work to 

enter training under the Trade Act of 1974. 

(2) The work being quit was engaged in on a 

temporary basis during a break in the training 

or a delay in the commencement of the training. (3) The individual left on-the-job training 

not later than 30 days after commencing the 

training because the individual did not meet 

the requirements of the Trade Act of 1974.

A bonus or profit-sharing payment is considered to be earned in the week the bonus or 

payment is made by the employer.

When a pension payment is actually or 

constructively received on other than a periodic basis, the department will allocate the 

payment to the week in which it was received.

Overpayments. Overpayments resulting from 

fraud may be offset by intercepting the individual’s Federal income tax refund.

Wyoming

Administration. The Wyoming Department of Employment is allowed to conduct 

and publish statistical analyses of payroll and 

employment in State agencies within the executive branch that may reveal the identity of 

State agency employing units.

Financing. The department is required to 

consolidate the separate accounts and benefit experience of an employer that acquires 

the trade, the business, the organization, or 

substantially all the assets of an employer. The 

new contribution rate will be effective the first 

day of the calendar quarter following the date 

of acquisition.

The penalty for failure to make required 

payments, pay assessments of interest, and pay 

penalties within 90 days of the receipt of a 

bill is expanded to all reimbursing employers. 

(Previously, it applied only to Indian tribes.) 
Unemployment Insurance, 2010

56  Monthly Labor Review • January 2011

The department is allowed to enter into an 

agreement for installment payments for delinquent tax and interest liabilities when repayment requirements are met and a lump-sum 

payment would cause severe inconvenience to 

the taxpayer.

Certain employers with a construction 

cost equal to or greater than the threshold 

construction cost defined by the industrial 

sitting council (previously, a construction cost 

of $100 million) are required to be assessed 

payments for an incremental bond. 

Overpayments. The alternative start date 

for the 52-week disqualification period for 

fraud is changed from the date that notice of 

the overpayment determination or decision is 

mailed to the claimant to beginning the week 

following the date that notice of the overpayment is mailed to the claimant.

Individuals are allowed to repay overpaid 

benefits through a voluntary reimbursement 

agreement, and the department may accept 

repayment without civil action pursuant to an 

approved payment schedule. 

The period for cancellation of overpayments or penalties is changed to 8 years from 

the effective date of the claim resulting in 

overpayment (previously, 5 years) when certain conditions are met.