Tough Times Put Unemployment Insurance to the Test
Legislators Make Key Changes to Improve the Program
Maine’s unemployment rate—8.3% in May—is higher than it’s been in more than twentyfive
years. More than 55,000 Maine people are out of work and nearly 2,000 more are
signing up for unemployment benefits each week. Thousands have exhausted their
state unemployment benefits and are now getting federal benefit extensions.
In February, Congress responded to these
tough times with passage of the American
Recovery and Reinvestment Act (ARRA).
Among many other key provisions, ARRA
gave states new resources to close major
gaps in their unemployment insurance (UI)
programs. For years these gaps let many low
wage and women workers fall through a safety
net intended to protect them.
Maine lawmakers, like those in most other
states, were quick to act to take advantage of
these new federal opportunities. Two pieces
of legislation were passed in 2009 with strong
bi-partisan support. Here’s a brief summary of
what each means for Maine workers.
UI benefits extended: Key changes
in benefits for workers who lose their job for “compelling personal reasons.”
This bill, LD 1454, was sponsored by Senate
President Elizabeth Mitchell (D – Kennebec.)
These changes to UI benefits are in effect now.
They include:
- UI benefit extension. Extends unemployment benefits for
an additional 13 or 20 weeks depending on our state unemployment rate. For
example, beginning on Sunday, July 5th, Maine workers are eligible for a total
of up to 79 weeks of unemployment benefits depending on their work history.
However, this number may drop to 72 if Maine’s unemployment rate declines
over the next few weeks or months.
- Benefits available to those who must leave work because of their
own illness or disability or that of an immediate family member.
Maine has long given UI benefits for people who had to leave work because
of illness, but this bill makes some key improvements in that law.
Workers may now qualify for UI if they have to:
- Leave work;
- Change or reduce their hours at work; OR
- Change their work shift because they, or an immediate family
member, become ill or disabled.
To qualify, a worker must tell their employer that they
need the time off or change in hours. If their employer refuses their request
and they lose their job, they will not be denied UI for leaving the job.
However, when the worker does sign up for UI after leaving the job, he or
she must be able to work.
For example: Susan asks to change her hours to care for a sick child
and her employer says no. She therefore leaves her job so she can take care
of her sick child. Once Susan is able to get back to work because her child
gets well or she finds someone else to help care for her child, she will
be able to get unemployment benefits. She can not be denied because she
left her job.
- Benefits available to victims of domestic violence. Maine
has long given UI benefits to workers who must leave their job to protect
themselves from domestic abuse. The law now extends that protection to workers
who must leave a job to protect any member of their immediate family from
domestic abuse. In both cases, the worker must have made all reasonable efforts
to maintain their employment. However if the family’s safety can not be assured,
the worker will not be denied UI for leaving their job.
- Benefits for workers who leave their job to follow their spouse
to a new location. Workers who leave a job to move to a new location
with their spouse may collect unemployment benefits at the new location. Under
the old law they were required to begin looking for work within 14 days of
moving or be denied benefits. That 14-day requirement has been lifted. Now
a worker can take more time after relocating to begin looking for work. The
worker can begin to collect UI benefits once he or she begins a job search
in the new location.
UI benefits available to unemployed
workers in a retraining program.
LD 1474, sponsored by House Speaker Hannah Pingree (D. North Haven),
will go into effect on September 12, 2009. This bill increases access to
extended UI benefits for dislocated workers in retraining programs.
Maine’s Dislocated Worker Benefit Program
(DWB) provides up to an additional 26 weeks
of UI benefits for workers who are in an
“approved” education or training program.
These workers can go to school while collecting
UI without also having to look for work.
Rep. Pingree’s legislation expands the definition
of “dislocated worker.” Up until now, a
“dislocated worker” was someone who lost a
job because their employer closed down. This
legislation now makes DWB benefits available
to workers who are laid off from employment
(or those with a layoff notice) as a result of a
reduction of operations at their workplace.
Workers must be eligible for UI to qualify for DWB. Workers qualify for DWB
benefits once they have used up all other state and federal UI benefits for
which they are eligible. You can find a list of “approved” training programs
on the Maine Department
of Labor website, or contact your local Career
Center.
LD 1474 also requires a review of why more
Maine workers don’t qualify for UI.
Speaker Pingree’s legislation also requires the
Maine Department of Labor to find out why so
many fewer Maine workers receive UI benefits
than in most other states. Only 3 out of 10
unemployed Maine workers who need help
from the unemployment system get it.
If a worker earned low wages, or is a single
parent, or worked in the service or retail
industry, his or her chances of qualifying are
even lower.
Low-wage workers are twice as likely to
be unemployed, but only half as likely to
collect unemployment benefits as higher
wage workers. The Commissioner of Labor
is required to report her findings to the
Legislature’s Labor Committee in January
2010.
Cindy, a worker from Hancock County who
was laid off this spring, testified in support of
LD 1474. Cindy told the Legislature’s Labor
Committee that:
“Today at 49 I find myself with few job
options. I have applied for other jobs but
without success. I want to work. I need to
work. Many much more qualified people
are looking for jobs nowadays. In order to
compete in this job market, I have applied
to a medical laboratory technology
program. This two-year degree will open
up job opportunities…I’m willing to put
in the time and effort, but I know that I’ll
need some help. Knowing that [DWB]
is available would make a world of
difference to me and my family.”
Steve Husson from Food and Medicine in the
Bangor area also testified in support of this
bill. He told the Committee about a fellow
named Mike:
“Mike worked most of his life in shoe
shops. He liked that kind of work but
it doesn’t exist any more. Then he went
to work driving vans delivering stuff.
Of course there was no insurance, no
pension plan, and the pay was a little
over minimum wage. Next he became a
minimum wage day worker doing some of
the crummiest jobs you can imagine. When that work ran out he went on
unemployment benefits. He doesn’t qualify
for re-training under the current law. He’s
stuck in the vicious cycle, a lousy resume,
low income and no future.”
Thanks to Speaker Pingree, people like Mike
now have the hope of a better future. We also
want to thank Cindy, Steve, the Maine AFLCIO,
the Maine Women’s Lobby, Kathy
Moore - former Director of Student Services
at Kennebec Valley Community College, the
Maine Center for Economic Policy and many
others. Because of them, this bill won the
unanimous support of the Labor Committee.
It then passed easily through the House and
Senate.
At a ceremonial bill signing Governor
Baldacci said: “Maine workers and
businesses are hurting. No sector is immune
from the impact of the global recession. This
bill is important because it makes training
more accessible to people who have been
laid off.”
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