U.S. Department of Labor announced the allocation of $15 million of American Rescue Plan Act (ARPA) funds to pilot a program to help workers apply for unemployment insurance benefits. The Department will select five states for the UI Navigator pilot, each receiving $3 million. The states will use that money to partner with labor unions…
Kentucky Auditor Mike Harmon’s office released a report identifying nine issues with Kentucky’s unemployment insurance program, including problems with security and the state’s auto-pay system. The report also found that the state paid over $195 million to over 28,000 out-of-state claimants between June 2020 and June 2021. Unemployment insurance refers to a joint federal and…
In testimony before the House Labor and Industry Committee on Feb. 10, 2022, Pennsylvania Secretary of Labor and Industry Jennifer Berrier estimated that the state paid $570 million of fraudulent unemployment insurance benefits from March 1, 2020, through Sept. 30, 2021. The fraudulent payments represented about 6.3% of the total unemployment insurance payments made during…
The Alabama Legislature passed a plan for spending American Rescue Plan Act (ARPA) funds on Jan. 27, 2022, directing $79.5 million of the state’s $2.1 billion ARPA allocation to replenish the state’s unemployment trust fund. Following the bill’s passage, Alabama Department of Labor Secretary Fitzgerald Washington announced the state dropped to a lower tax schedule…
The Michigan House of Representatives on Jan. 27 approved a package of bills proposing changes to the state’s system of unemployment insurance benefits administration. The legislation comes after an audit discovered the UIA paid at least $8.5 billion in improper benefits between March 2020 and December 2021. The package includes bills prohibiting the Michigan Unemployment…
The Iowa Department of Workforce Development issued a rule on January 10, 2022, that doubled the number of work search activities claimants have to conduct weekly from two to four. Work search activity refers to the requirement that an individual engages in documented efforts to search for work while receiving benefits through unemployment insurance. The…
Michigan Gov. Gretchen Whitmer (D) on Dec. 29, 2021, signed Executive Order 2021-16, which established an unemployment fraud response team to recommend actions to the director of the Michigan Department of Labor and Economic Opportunity and the heads of other executive departments for reducing the number of fraudulent unemployment insurance claims the state pays. The…
The Illinois Department of Employment Security (IDES) announced on Nov. 22, 2021, that unemployment insurance payments through state-issued debit cards would end starting Dec. 27, 2021. IDES said payments would continue through paper checks and direct deposit. Claimants will still be able to access the funds on their debit cards after December 27 until their…
State unemployment taxes are employment taxes employers must pay to support the joint federal-state unemployment insurance program. State unemployment taxes are also known as SUTA taxes, state unemployment insurance (SUI) taxes, or reemployment taxes. Employers usually pay a percentage of an employee’s salary in SUTA taxes up to the wage base (the maximum amount of…
Two states ended statewide public mask requirements for vaccinated and unvaccinated people between June 18-24. Michigan Gov. Gretchen Whitmer (D) ended most remaining statewide coronavirus restrictions, including the statewide mask mandate, on June 22. Vaccinated and unvaccinated people still have to wear masks on public transportation and at public transportation hubs (like bus stations and…