Jobless Benefits Extended Retroactively

On July 22, 2010 legislation to extend jobless benefits passed the House and was signed into law by President Obama. The law extends benefits for the long-term jobless through November and makes payments retroactive to early June. As many as 70,000 Massachusetts residents would have their benefits restored, state officials said, adding that they were preparing to send out checks as soon as the legislation is finalized. The extensions allow laid-off workers to collect for up to nearly two years.

The law will also help workers who would have had benefits reduced because they took part-time or temporary jobs to supplement their unemployment checks. As the economic downturn has dragged on, laid-off workers seeking to renew benefits for a second year were penalized for performing some alternate work while looking for a permanent job. When they did renew, their benefits were recalculated based on low pay from part-time or temporary work.

Earlier this year, for example, the Globe interviewed a carpenter who had benefits cut by 70 percent because he took a construction job that lasted three weeks. A transportation worker who took a six-week job with a lawn service lost 60 percent of his benefits when he renewed his claim after a year.

The fix, which applies to workers who would lose more than $100 a week, or 25 percent of their benefits, means that many who accepted part-time or temporary work will be able to continue to collect full benefits after a year. The provision, however, is not retroactive, and will only help workers who renew their claims after the bill takes effect.

Secretary of Labor and Workforce Development Joanne Goldstein said it will probably take a “bit of time’’ to send out the retroactive checks because of the complexity of calculating the payments for 70,000 people with different benefits and were cut off at different times. “We are going to do it as quickly and accurately as humanly possible.’’

The state has set up a phone line to answer questions for those who had benefits cut off in recent weeks. The number is 1-888-998-8418. Updates will also be available on the at www.mass.gov/dua/ui. Go to the claimant section.

State officials are advising claimants to continue to certify weekly benefits and have extended hours at telephone claim centers to 7 a.m.-6:30 p.m. Monday through Friday and 8 a.m.-1:30 p.m. on Saturday.

-From “New unemployment law fixes snag; Measure will restore reduced benefit” by Robert Gavin, Globe Staff, The Boston Globe, July 23, 2010, http://www.boston.com/business/articles/2010/07/23/new_unemployment_law_fixes_snag/ retrieved 7/23/10; and “Impasse ends on jobless benefits; Senate advances bill; House expected to agree” by Mark Arsenault and Robert Gavin, Globe Staff, The Boston Globe, July 21, 2010, http://www.boston.com/news/nation/washington/articles/2010/07/21/senate_advances_jobless_benefits/, retrieved 7/21/10.

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