Casting A Wider Unemployment Safety Net
It's no secret that underemployment has been a growing trend both here in Illinois and across the country. Employers have increasingly eschewed full-time positions in favor of
part-time workers to reduce the burden of providing health care and
other benefits. Many workers, ...
It's no secret that underemployment has been a growing trend both here in Illinois and across the country. Employers have increasingly eschewed full-time positions in favor of part-time workers to reduce the burden of providing health care and other benefits. Many workers, particularly those with families (PDF), have dealt with these changes by juggling several part-time jobs to make ends meet. But skyrocketing unemployment and a tight job market have exposed a major flaw in Illinois' outdated unemployment system: The safety net isn't always available to those part-timers who find themselves laid-off.
Encouragingly, labor and business leaders in Illinois are now rethinking those rules. Spurred by $7 billion worth of stimulus money available to states that "modernize" their unemployment systems, an overhaul could be in place as early as spring. If a deal is struck, Illinois stands to gain $200 million for its unemployment trust fund. The catch is striking an agreement that incorporates at least two of four modernization elements. The National Employment Law Project spells them out (PDF):
(1) eligibility for part time workers who have a history of part time work, (2) permitting individuals to leave work without disqualification when they have compelling family reasons for quitting, (3) providing at least 26 weeks of additional UI benefits for individuals participating in approved training, and (4) paying dependents’ allowances of at least $15 a week per dependent.
The AFL-CIO and Illinois Chamber of Commerce are leading the current round of negotiations. John Bouman of the Sargent Shriver National Center on Poverty Law tells us that those involved are leaning towards extending benefits to part-timers and people pulled from their jobs because of compelling family reasons. We'll be keeping you updated on those negotiations.
Fortunately, Illinois already has one modernization element in place: the alternative base period (PDF), which modifies the eligibility requirements to make unemployment benefits available to many part-time and low-wage workers who previously failed to meet the criteria. As a result, the state's unemployment insurance program received an additional $100 million in stimulus funds this week.
Comments
Great news, great news. I think Oregon has also recently approved a bill that would, as you say, cast a wider unemployment safety net. I hope other states would follow suit.
I was on the extended benefits extension and my weekly benefit was based on my previous full time job. I became a substitue teacher and worked to supplement my income without going over half of my weekly benefit amount. After I made $1600 and over $440 outside my highest quarter using the alternate base period, I was alerted that I qualified for regular unemployment benefits, for 26 weeks. I was told that I must be taken off the extension and put on regular unemployment thus reducing my weekly benefit amount by $350.
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