New Developments on Federal Unemployment Extensions and Benefit Cuts
(Updated May 21, 2013)

En español

May 21, 2013 3:00 p.m.

Updated: Number of individuals who have run out of benefits is now over 1,049,000.

Congress and President Obama have authorized the federal extensions of Unemployment Insurance (UI) benefits through the end of December 2013.  The maximum potential weeks available are up to 73 weeks, including up to 26 weeks of state-provided regular benefits and up to 47 additional weeks of federal extension benefits.

The dollar amount available on federal extensions is now being cut due to required federal sequestration cuts. These cuts do NOT affect regular unemployment benefit amounts.

Sequestration Cuts

As part of sequestration, Congress requires that all states cut the benefit amounts of the federal Emergency Unemployment Compensation, or EUC, program. In California, this means a cut of 17.69% on the weekly and maximum benefit amounts for all new federal extensions (tiers 1 through 4) filed with an effective date of April 28, 2013, or after.

This cut will NOT impact anyone collecting federal extension benefits on an existing tier filed with an effective date before April 28, 2013. The cut will be implemented when an individual ends that current tier and becomes eligible to receive benefits on the next extension tier filed with an effective date of April 28, 2013, or after.

Below is a breakdown of the benefits that will be impacted by the sequestration cuts in California.  After each federal extension is filed, an eligibility notice is mailed providing the effective date of the extension, the weekly benefit amount, and the maximum benefit amount available.  For federal extensions filed with an effective date of April 28, 2013, or after, the notice will reflect a 17.69% cut in the weekly and maximum benefit amounts.  

We encourage you to use the Sequestration Reduction Calculator to estimate what your weekly benefit amount will be after the 17.69% sequestration cut. 

For more information on the sequestration cut, please visit our frequently asked questions on the FAQ – Extended Unemployment Benefits page or review the Critical Information About Cuts to Federal Extension (DE 6331SEQ) insert.

Potential Maximum Weeks of Benefits Provided

Federal extensions of unemployment benefits first became available in California in June 2008 and since then a total of more than $41 billion in extension benefits have been paid in the state. Once offering up to 73 additional weeks of unemployment after someone ran out of their regular up to 26 weeks of state-provide benefits, federal extensions now provide up to 47 additional weeks of benefits.

Here is a breakdown of the federal extension benefits and the total maximum weeks of unemployment benefits available in California. The total number of potential maximum weeks of benefits available depends on when your regular UI claim and extensions are filed.

Note: The sequestration cuts do not change the potential maximum number of weeks available but will reduce the weekly and maximum dollar amounts potentially payable by 17.69%.  For example, individuals whose federal EUC extension weekly benefit amount is $450 and maximum benefit amount is $6,300 will have a reduced weekly benefit amount of $371 and maximum benefit amount of $5,186 after the sequestration cut. The amount of weeks available within each extension tier remains the same; only the overall benefit amount available is cut.  

*There are special claims that have a week ending date other than Saturday. In those cases, benefits may be payable for the week ending January 1, 2014.

Work Search Requirements for Eligibility of Extensions Benefits

Federal legislation on extension benefits requires individuals to meet specific work search requirements to be paid benefits on their federal extensions. Those collecting federal extensions could lose their benefits if they fail to comply with the work search requirements of the federal law. Individuals collecting regular UI benefits and federal extension benefits have always been required to look for work. However, this legislation requires individuals collecting federal extension benefits (Tiers 1-4) to also meet the following work search requirements, in addition to meeting all other UI eligibility requirements:

• Document their work search efforts, which now must include contacts with at least three different employers each week; and
• Provide their work search documentation upon request to the EDD; and
• Ensure they are registered in EDD’s CalJOBS^SM, California’s online job listing and resume service, by entering or updating their résumé in the system.

In addition, those individuals collecting benefits on the first or second tier of federal extension benefits must appear at local One-Stop Career Centers to learn about employment services offered by the EDD and local partners, and to verify that they are complying with UI eligibility requirements. Individuals who must complete these mandatory Reemployment and Eligibility Assessments (REA) appointments will receive notices on appointment details. They could lose their benefits if they fail to appear for that appointment and/or fail to comply with other requirements of the law. For more information on the REA appointments, please visit the Reemployment Eligibility Assessment page.

For more information on the work search requirements, please visit our frequently asked questions on the FAQ – Extended Unemployment Benefits page.

Current Benefits Status

Currently, there are close to 988,000 people certifying for benefits in California. Less than half of these customers are collecting on a federal extension claim while the remainder are somewhere in the midst of a regular unemployment claim.

Between regular and federal extension benefits, the EDD has paid a total of $17.1 billion in benefits for calendar year 2011 and $13.7 billion for calendar year 2012, which equates to about $264 million a week. These benefits provide critical sustenance to unemployed workers and their families, in addition to local businesses where much of the benefits are spent on basic needs.

Customers Who Have Run Out of Maximum Benefits

As of May 20, 2013, there have been close to 1,049,000 unemployed workers in California who have run out of all available benefits.

Unemployed individuals may be eligible for assistance to meet basic needs as well as other services such as health care, counseling, employment and training assistance. For more information, read the Assistance for Unemployed California Residents flyer and the Job Dislocation Brochure: English | Spanish.

For any further developments in the Unemployment Insurance program, as well as all other EDD programs and services, we encourage our customers to watch for updates on our website and on our EDD Twitter and Facebook pages.