ABSTRACT
This chapter explains the basic objectives of unemployment compensation, and the eligibility requirements that must be met to receive weekly unemployment compensation benefits. Primary objectives of unemployment compensation are to provide cash payments during involuntary unemployment, to help maintain the worker's standard of living, to provide time to find employment, and to help unemployed workers find jobs. The chapter explains the major provisions of unemployment compensation laws, and illustrates the states to develop their own unemployment compensation programs. Each state determines coverage, benefit amounts, qualifying wages, and duration of benefits. The chapter identifies the major situations that can disqualify unemployed workers from receiving benefits and describes the permanent extended-benefits (EB) unemployment insurance program. It discusses how state unemployment compensation programs are financed, and explains the major arguments for and against experience rating in the financing of benefits. The chapter also reviews the basic features of temporary disability insurance laws that exist in five states and Puerto Rico.
