CT Unemployment Benefits to Rise $18 a Week on Oct. 2

On Monday, September 26th the Connecticut Department of Labor issued a press release that announced Unemployment Insurance benefits maximum will rise from $555 a week to $573. This increase will go into effect Sunday, October 2nd.

This means anyone applying for new unemployment benefits on or after Oct. 2, 2011 will receive the revised rate. New claims filed before this date, as well as those currently collecting unemployment benefits, will not receive the revised rate. Also unchanged is the weekly dependent allowance, it remains at $15 per dependent with a $75 maximum.

An increase in unemployment benefits is limited, by law, to $18 a week or 60 percent of the average wage - whichever is less. This revision was based on average manufacturing wages from the year ending June 30, 2011. These earnings averaged $995.88 a week in 2010-2011, up about 3.9% from the 2009-2010 average of $958.52.

Previously, unemployed workers in Connecticut would receive 26 weeks of unemployment insurance benefits, but Congress approved an extension of up to 99 weeks in states with high unemployment rates. In August the Connecticut unemployment rate was 9 percent. The year ending on August 31, 2011 saw unemployment benefits average $301 a week with claimants receiving benefits for an average of 19.6 weeks. This is a slight increase from last year's averages of $297 a week for 18.6 weeks.

According to the press release:
"Regular state unemployment benefits are funded by a separate assessment paid by 98,300 Connecticut employers. The tax is based on the first $15,000 of each worker's annual wages."

After reviewing the press release, especially the above paragraph, we do not believe that this $18 increase will affect how much our clients are paying into the unemployment benefits fund. We'll keep monitoring this situation and alert our clients to any changes.

Further Reading:
CT DOL Press Release 9/26/11 (opens as .PDF)