Unemployment Benefits Extended

Latest news on unemployment benefits. July 23, 2010.

President Obama: "Americans who are fighting to find a good job and support their families will finally get the support they need to get back on their feet during these tough economic times."

So, what do we have now?
First, unemployment benefits are extended. Second, the starting insurance rate for unemployment benefits has been increased. Third, the burden of proof is placed on the employer (all employee have to do now is file a claim). Fourth, every time employee is successful in his or her claim, the unemployment insurance rate gets higher. Finally, government provided rules and procedures for employers to contest those claims, but in reality, any change in employment environment would allow an employee to be to win the claim.

What is the end result?
More unreasonable unemployment claims. In its interview to ABC News (to read the interview click here)
one of the government officials claims that this change would help some Americans "to put food in the table." Absolutely, but what about small business owners or start up business? Do we care about them? Do they have families that also need food and shelter? What if soon all these small businesses will be forced to close and those former employers will become employees themselves...who will pay unemployment benefits then?

People tend to forget that unemployment benefit is a privilege and not a right. And since this is a privilege, there has to be some safeguards in the law, that would allow employers and employees a fair claim adjudication. By extending unemployment benefits without improvement in the law, the source for these payments will be exhausted soon and who would care than if unemployment plan will last 6 months or 6 years.

For more information, visit our unemployment benefits page here.


+3 #1 Mariya 2011-02-08 20:31
Great article, thank you!

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