Unemployment compensation was created by the Social Security Act of 1935 to protect workers who became unemployed through no fault of their own. The federal government provides incentives and guidelines to the states about unemployment compensation, but each state is responsible for its own guidelines and program for unemployment compensation.
Typically, a state program provides partial income replacement for up to 26 weeks. The state unemployment compensation system is usually funded through an employer tax, although in a few states, employees pay.
When economic conditions warrant additional assistance to the unemployed, the federal government will enable the states to extend unemployment compensation for additional weeks by providing additional funding.
For additional resources, see Filing for Unemployment.
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