Evening star., 1946-03-17
Jobless Benefit System
Undergoes Many Changes
District Setup Functions Smoothly After 10 Years
of Improvement, Easing Burden on
Employers and Speeding Payments
By C.. a. Wharton


ployment Compensation Board has re-
Gently completed its first 10 years of ad-
ministration and can verify the truth of
that saying. The original District of
Columbia Unemployment Compensation
Act was supposed to be model act but
short period Of benefit experience dis
closed that it was cluttered with so
many cumbersome provisions that it
was well-nigh unadministrable. Since
the beginning there have been many
legislative and procedural changes so
that now the board is able to operate in
very expedient and efficient way.
Unemployment compensation was in
effect in numerous European countries
for varying periods prior to 1885, but
little publicity of this reached our
shores. At that time, except in the
progressive State of Wisconsin, in which
it was mere infant, it was unknown in
the United States.
President Roosevelt urged the inaugu-
ration of social security program in
1885. On the 14th of August in that
year Congress passed the Social Security
Act which was supported by Senator
Wagner and Representative Lewis tof
MarylanO. This paved the way for the
passage of the District of Columbia Un-
employment Compensation Act on Au-
gust %, 1895.
Start on Voluntary Basis.
Administration under the District act
commenced in very modest way. The
act required contributions to be paid on
the 18th day of February, 1886, and at
that time no administrative expenses
we're forthcoming from the Social Sc
curity Board. The late John A. Mar
shall, then superintendent of insurance
for the District of Columbia, was ap-
pointed director. He continued as SUI
perintendent of insurance until admins
of March, 1896. Until these funds were
available he collected contributions,
with the help of couple of voluntary
helpers, at the Office of the superin-
tendent of insurance.
There was widespread skepticism as
to the constitutionality of the act and
because of this, many employers chose
to ignore it. The Supreme Court of the
United States dispelled all doubt on this
score on May 27, 1887, however, when it
rendered an opinion upholding the con-
stitutionality of the Alabama Unem-
ployment Compensation Act, in the case
of Carmichael VS.. Southern Coal and
Coke Co.
In the beginning the District act had
a more complete coverage than any of
the other State acts, in that it and 1t
alone covered employers of one or more
individuals. Many of these small en-
ployers were not in the habit of keeping
records. Often, as matter of fact.
their sole records consisted of the
money in their pockets and usually this
money was used to defray both their
business and family expenses. When
the time came to pay their unemploy-
ment compensation contributions this
money was often missing from their
pockets. Because of these conditions
the board had to carry out an educa-
tional program. These employers haG
to be advised of their obligations under
the act and instructed how to keep
proper books. This proved to be a
tedious job and almost impossible in
the case of many employers who were
unable to speak English.
Exemption List Broadened.
The act was first amended on Febru-
ary IS, 1886. At this time all religious
institutions and nonprofit schools, COL
leges and universities were granted an
exemption from the coverage of the
act. On June %, 1886, this exemption
was broadened to include service per-
formed in the employ of corporation,
Community Chest fund, or foundation,
organized and operated exclusively for
religious, charitable, scientific, literary
or educational purposes, or for the pre-
vention of cruelty to children or ami
mails, no part of the net earnings of
which inures to the benefit of any pri-
vate shareholder or individual"
After collecting contributions for two
years the board commenced to paw
benefits to eligible claimants in 1888.
Most acts have what is known as flag
period but the District act did not
have one. A 'slag period" is set period,
Immediately prior to the day on which
claimant files his initial claim for
benefits, which is not used in COM
putting the individuals claim for bene-
hts. Thus, when an act contains a lag
period all information necessary for
the computation of claim should be in
the files of the board.
The lack of flag period" in the
District act delayed the payment of
benefits as the board invariably had to
obtain wage and separation report
from the claimants last employer in
order to determine his claim In un-
usual cases wage and separation reports
were needed from more than one of a
Claimants employers. However, the
boards difficulty only commenced when
a claimants employment record was
complete. 1t then had to compute his
claim in accordance with the compli-
Gated benefit provisions of the act.
First. the average weekly wage was
figured by averaging the wages in all
Of the 30-hour weeks, which occurred
in the last 104 weeks. However, If the
claimant did not have 26 3O-hour weeks
during that period, all weeks of en-
ployment were used in determining
his average weekly wage.
The claimants weekly benefit amount
varied from 40 per cent to IS per cent
OF his average weekly wage, based on
his dependency status. The claimant
received ordinary benefits at ratio of
one benefit week for every three weeks
OF employment during the past 104 weeks
and additional benefits at the rate of