What is Unemployment Insurance?



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What is Unemployment Insurance?

The unemployment insurance (UI) system was designed by President Franklin Roosevelt’s Secretary of Labor Frances Perkins and enacted by Congress in 1935 as part of the Social Security Act, 42 U.S.C. §§ 501 et seq. , to stabilize the economy and to provide short-term relief to displaced workers. UI provides temporary cash benefits to workers with a recent attachment to the workforce who have become unemployed through no fault of their own and are currently capable of, available for, and actively seeking work. G.L. c. 151A, §§ 24 , 25 .

UI is administered by state agencies. The federal Department of Labor sets up certain guidelines and funds the states' administrative costs. In times of high unemployment, the federal government may also supplement state UI benefits with a federally funded extension. Individual states have wide discretion to determine UI benefit levels, the maximum duration of benefits, and the reasons for disqualification. The Department of Unemployment Assistance (DUA) administers the UI program in Massachusetts.

As of October 1, 2022 (and effective for new benefit years beginning October 3, 2022), the maximum benefit rate in Massachusetts is $1,015 per week (not including an additional allowance of $25 per dependent; the maximum benefit is adjusted annually on October 1, with an effective date for claimants whose benefit year begins on or after the 1st Sunday in October. G.L. c. 151A, § 29(a) . Generally, the benefit rate paid to qualified workers is one-half of the claimant's average weekly gross wages up to the weekly maximum, plus any dependency allowance to which the claimant is entitled. Massachusetts currently provides up to 30 weeks of coverage to each eligible claimant (reduced to 26 weeks when, as now, the insured unemployment rate in each of the state's 10 regions of the state is 5.1% or less, or when there is a federal extension in effect. G.L. c. 151A, § 30(a) ). Claimants who are in a DUA-approved training program, who have been laid off because of a plant closing, or who have lost their jobs due to NAFTA and other foreign competition may also be entitled to additional federal or state benefits. (See Question 53 .)

Unemployment insurance benefits are generally taxable income for both federal and Massachusetts tax purposes. Claimants can choose to have federal and/or state taxes automatically withheld from weekly benefits by so indicating on UI Online or by choosing that option by telephone . In January of each year, DUA provides claimants with tax related information based on the amount of UI received in the prior year on a 1099-G-Form, usually available on UI Online by the end of January along with copies of a claimant's 1099-G for the prior 6 years. Claimants needing information and assistance about their taxes can call the 1099-G Helpline at (617) 626-5647.

UI Introduction Who Is Covered By Unemployment Insurance? Print PDF

Table of Contents

About MLRI and GBLS, Acknowledgements, and Copyright UI Introduction What is Unemployment Insurance? Who Is Covered By Unemployment Insurance? Sources of Law Governing the UI Program What is the Role of the Department of Unemployment Assistance? What UI Taxes Do Employers Pay? UI Part I -- The UI Claims Process 1. How Does a Worker Apply for Benefits and What Are the Problems with UI Online? 2. What Information Does DUA Require? 3. What Is the Initial DUA Eligibility Process? 4. How Are UI Benefits Calculated? 5. When Does Eligibility for Benefits Begin? 6. What Does a Claimant Need to Do to Keep Getting UI Benefits or to Requalify for UI Benefits & End an Indefinite Disqualification? UI Part II -- Eligibility 7. What Are the Financial (Earnings) and Personal Eligibility Tests? 8. What Are the Capability, Availability, and Suitability Requirements of the Personal Eligibility Test? 9. Who Does DUA Consider to Be Totally or Partially Unemployed? 10. What Happens If Benefits Are Denied, Either Initially or After the Claimant Has Begun Receiving Them and When Can the Denial Be Reconsidered? UI Part III -- Separation from Work 11. Was the Discharge for Disqualifying Reasons? 12. Did the Claimant Engage in Deliberate Misconduct? 13. Was the Conduct in Willful Disregard of the Employer s Interest? 14. Was the Claimant Discharged for a Rule Violation? 15. Did the Claimant Commit a Knowing Violation? 16. Was the Rule Reasonable? 17. Was the Rule Uniformly Enforced? 18. Was the Claimant Incapable of Following the Rule? 19. How Does a Suspension Affect Eligibility? 20. Summary: What Questions Does DUA Ask in Discharge Cases? 21. Did the Claimant Quit Voluntarily and Without Good Cause Attributable to the Employer? 22. Was the Separation Voluntary? 23. Was the Separation Coerced or Required By the Employer? 24. Was the Separation For Good Cause? 25. Was There A Reasonable Concern Regarding Health or Safety? 26. Was the Claimant Being Discriminated Against or Harassed at Work? 27. Did the Claimant Take Reasonable Steps to Preserve Job? 28. Summary: What Questions Does DUA Ask in Voluntary Quit Cases? 29. Were There Urgent and Compelling Personal Reasons Causing the Claimant to Leave Work? 30. Did the Claimant Try Requesting a Leave of Absence First? 31. Was There a Transportation Problem? 32. Was There a Pregnancy/Parental or Illness Issue? 33. Did the Claimant Need to Leave Work or Was the Claimant Fired Due to Domestic Violence? 34. Did the Claimant Leave Work Due to Alcoholism or Substance Abuse? 35. When Does DUA Treat a Discharge As a Quit? 36. Did the Claimant Leave Work Due to a Felony or Misdeameanor Conviction? UI Part IV -- Special Situations 37. Employees of Educational Institutions 38. Employees of Temporary Help Agencies 39. Worker Misclassification Issues 40. On-Call Workers 41. UI Eligibility during a Labor Dispute 42. Persons Receiving Workers Compensation 43. Persons Receiving Social Security Disability or Retirement Benefits, or a Pension 44. Persons Receiving Severance Pay or Other Lump-Sum Payments Upon Separation From Employment 45. Working and Leaving Multiple Jobs 46. Combined Wage Claims (Interstate Claims) UI Part V -- Receiving Benefits 47. Are Claimants Entitled to Additional Benefits for Their Children? 48. For How Long Can a Claimant Receive Unemployment Benefits? 49. How Do Part-Time Earnings Affect UI Benefits During the Benefit Year? 50. What Is the Worker Profiling Program and RESEA? 51. What Are the Requirements For Non-Citizens? 52. What Is DUA s Obligation to Claimants Who Don t Speak English? 53. Is the Claimant Eligible for Training ( TOP, or Section 30, or RED ) Extended UI Benefits? 54. What Are the Penalties for Fraud? UI Part VI -- Appeals Process 55. If Unemployment Benefits Are Denied, How Long Does a Claimant Have To Request A Hearing? 56. As an Advocate, What Do You Need to Know About the Hearing Process? 57. How Should You Prepare for a Hearing? 58. Have You Obtained All Documents? 59. How Should You Present Your Case at a Hearing? 60. When and How Is a Hearing Decision Made? 61. Does the Claimant Receive Benefits While a Further Appeal Is Pending? 62. Can the Claimant Get an Overpayment of UI Benefits Waived or Requalify for UI Benefits? 63. How Do You Request Review by the Board of Review? 64. How Do You Appeal to the Court? 65. How Do You Recover Attorney s Fees in Unemployment Cases? UI Part VII -- Covid-19 UI Measures 66. What are the sources of law for COVID-19 programs and policies? 67. What is Pandemic Unemployment Assistance (PUA)? 68. What are the regular UI COVID-19 policy changes? 69. How do you verify your identity? UI Appendices Appendix A: Unemployment Insurance Centers- Statewide List Appendix B: DUA Directory (By Activity) Appendix C: Reserved for Future Use Appendix D: Sample Letter Requesting Waiver Appendix E: Reserved for Future Use Appendix F: Reserved for Future Use Appendix G: Work Search Log Appendix H: GBLS Unemployment Insurance Claim Checklist Appendix I: Request for Personnel Records Appendix J: Sample Subpoena for Use in UI Cases Appendix K: Proposed Findings of Fact and Rulings of Law Appendix L: Sample Memorandum to the Board of Review Appendix M: Sample Complaint for Judicial Review Appendix N: DUA s Glossary of Terms Appendix O: DUA Good Cause Guidlines Appendix P: Information on Pell Grants Appendix Q: Health Care Providers Statements Appendix R: Assistance Programs for Massachusetts Residents About Us Terms of Use Privacy Policy FAQ Jobs MLS is funded by: Massachusetts Legal Assistance Corporation Top