Timeline of unemployment insurance
| Unemployment insurance |
|---|
|
| • Terms and definitions • Court cases • Unemployment insurance programs in the states • Reform proposals related to unemployment insurance • Reform activity in the states related to unemployment insurance • Index of articles about unemployment insurance |
| Click here for more coverage of unemployment insurance on Ballotpedia |
Unemployment insurance is a term that refers to a joint federal and state program that provides temporary monetary benefits to eligible laid-off workers who are actively seeking new employment. Qualifying individuals receive unemployment compensation as a percentage of their lost wages in the form of weekly cash benefits while they search for new employment.[1][2]
The federal government oversees the general administration of state unemployment insurance programs. The states control the specific features of their unemployment insurance programs, such as eligibility requirements and length of benefits.[2]
Although the word insurance is in the term, a few key differences distinguish unemployment insurance from private insurance plans such as home insurance, car insurance, or health insurance. In most states, employers—rather than individuals themselves—pay unemployment taxes that fund state unemployment insurance programs. When an individual loses their employment (and meets eligibility requirements), state-administered unemployment insurance programs provide temporary monetary benefits to the former employee. Unemployment insurance compensation is not intended to replace lost wages; it is designed to replace a portion of the individual's lost wages with the goal of providing financial support as an individual searches for a new job.[3]
This page features a timeline of selected events in the developments of the joint federal-state unemployment insurance program.
Timeline
- See also: Unemployment insurance
The following timeline features selected events in the development of the joint federal-state unemployment insurance program.
- 1932: Wisconsin creates first state unemployment insurance program
- Wisconsin became the first state to pass a law establishing an unemployment insurance program. California, Massachusetts, New Hampshire, New York, Utah, and Washington followed suit.[4]
- 1935: Social Security Act creates joint federal-state unemployment insurance program
- President Franklin Delano Roosevelt (D) signed the Social Security Act, which established the joint federal-state unemployment insurance program.[4]
- 1936: First unemployment insurance benefits issued
- Neils B. Ruud of Madison, Wisconsin, received the first unemployment insurance compensation check for a total of $15.[4]
- 1937: All states enact unemployment insurance laws
- By 1937, all states and the District of Columbia had enacted unemployment insurance laws.[4]
- 1945: States narrow unemployment insurance eligibility
- Twenty-six states as of 1945 had implemented stricter eligibility requirements for unemployment insurance. These criteria limited compensation to individuals who had been laid off or lost employment through no fault of their own. All states as of 2022 had similar requirements.[4]
- 1952: States require work search activity to receive unemployment insurance benefits
- Twelve states by 1952 required unemployment insurance recipients to actively engage in work search activities in order to receive benefits. All states as of 2022 had similar requirements.[4]
- 1970: Federal legislation allows for extended unemployment insurance benefits
- The Employment Security Amendments of 1970 created the first permanent system for allowing states to extend unemployment insurance benefits for up to 13 weeks after regular benefits expire during times of high national or state unemployment. The legislation also expanded unemployment insurance coverage to more workers, including employees of state hospitals and universities, small businesses, and nonprofit institutions.
- 2012: Federal legislation alters unemployment insurance qualifications
- The federal Middle Class Tax Relief and Job Creation Act of 2012 clarified that unemployment insurance recipients must actively seek work, be able to work, and accept reasonable job offers. States under the act must also provide reemployment services to unemployment insurance recipients, among other provisions.[5]
- 2020: Federal government expands unemployment insurance benefits in response to pandemic
- The federal Coronavirus Aid, Relief, and Economic Security (CARES) Act (2020) expanded benefits through the joint federal-state unemployment insurance program during the coronavirus (COVID-19) pandemic.
- 2021: Federal government extends unemployment insurance programs related to pandemic
- The American Rescue Plan, signed by President Joe Biden (D) on March 11, 2021, extended federal unemployment insurance programs related to the coronavirus (COVID-19) pandemic, including the federal government's $300 per week add-on to state unemployment benefits, through September 6, 2021.[6] The legislation also extended unemployment benefits for self-employed and gig workers, extended benefits for unemployed mixed earners (people who earned money through employment and self-employment), and extended the number of weeks individuals could receive unemployment.
- 2023: Unemployment insurance solvency
See also
External links
Footnotes
- ↑ The Wall Street Journal, "How Does Unemployment Work?" February 22, 2021
- ↑ 2.0 2.1 Employment Law Firms, "How Unemployment Works," accessed May 18, 2021
- ↑ Foundation for Government Accountability, "What is 'Unemployment Insurance?'" December 30, 2020
- ↑ 4.0 4.1 4.2 4.3 4.4 4.5 Eligibility, "History of Unemployment Insurance," February 5, 2016
- ↑ Unemployment Insurance Info, "History of Unemployment Benefits," accessed February 13, 2022
- ↑ Forbes, "New Stimulus Package: Unemployment Benefits, $300 Per Week Extended Until September," March 12, 2021
- ↑ U.S. Department of Labor, "State Unemployment Insurance Trust Fund Solvency Report 2023," March 2023
| |||||||||||
