Over 4,700 Kentuckians will lose their unemployment insurance benefits by the end of November.
After November 28, no new applications will be accepted and claimants who failed to claim their benefits will no longer be entertained. The Kentucky Labor Cabinet said that about 4, 723 employees in Kentucky are to lose their unemployment insurance due to federal rules. The U.S. The Department of Labor (USDOL) called the Cabinet last Monday and notified them of the end of the extended insurance benefits claim.
The basics of unemployment insurance
Also called unemployment benefits, this insurance is state-provided insurance and is made available for people who lost their jobs and meet the eligibility requirements set. Self-employed, people who got fired, and those who left their jobs aren’t eligible for the unemployment insurance benefits. This initiative is a program between the state and the federal government. The federal government, however, puts up laws that govern the program and every state must adhere to them. If eligible, claimants can have financial support for up to 26 weeks. The cash is given weekly and is designed to replace the employees’ average wage.
The USDOL said that in Kentucky, the 26-week cash support will be cut down and will no longer be made available by December.
Low labor force
USDOL said that Kentucky’s insured unemployment rate (IUR) is below the threshold for the state. The IUR is the number of Kentuckians that are getting unemployment insurance, the low number of percentage of the labor force caused the end of the unemployment insurance benefits. The standard and required threshold for the IUR is 5.00% but by the end of the 13-week IUR report, Kentucky only reported 4.67% rate. While this isn’t good news for many families, Gov. Beshear said that the state must abide by the rules.
For employees who are off work due to the pandemic, they can still be eligible for the PUA benefits until the end of the year.
Programs created to help Americans in the pandemic
Aside from unemployment insurance, the government created programs to help those who are unemployed due to the pandemic.
These are as follows:
- Federal Pandemic Unemployment Compensation (FPUC)
An extra $600 weekly benefit aside from the regular unemployment insurance benefit. This payout is available only until July 2020.
- Pandemic Unemployment Assistance (PUA)
It is an expanded unemployment insurance benefit for freelancers, self-employed workers, independent contractors, and part-time employees.
- Pandemic Emergency Unemployment Compensation (PEUC)
Extended unemployment insurance for 13 more weeks.
- The Lost Wages Assistance (LWA)
This is a joint program of the state and federal government that provides $300-$400 weekly pay out for eligible claimants. The Disaster Relief Fund provides for the $300 while the state adds another $100. The LWA was created after the FPUC expired.
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