FEBRUARY 13, 2009 – Some unemployed workers in Michigan may be eligible for up to 13 additional weeks of unemployment benefits after they have exhausted their state unemployment insurance benefits and their two existing federal extensions.

"Michigan is now eligible to pay extended benefits through the federal-state Extended Benefits program," said Stephen Geskey, director of Michigan's Unemployment Insurance Agency (UIA).  "Citizens who established a claim for state unemployment benefits on or after February 3, 2008, may qualify for the new Extended Benefits program once they exhaust their federal Emergency Unemployment Compensation (EUC)."

To qualify for Extended Benefits (EB), Geskey said that eligible workers must:

• Be unemployed or underemployed
• Have an unemployment benefit year that ends on or after January 31, 2009.  A benefit year is a 52-week period starting from the week in which a worker applies for state unemployment benefits;
• Have exhausted all of their state and federal unemployment benefits and federal extensions (EUC) and cannot establish a new claim; and
• Perform a work search and list the employers contacted each week.  As evidence of their work search, workers will have to supply the names of employers they have contacted over the prior two weeks, as well as the name of the individual they contacted at each business, their method of contact, type of work they sought, and the results of their contact.

The EB program pays unemployed workers half of what they received in state unemployment benefits up to 13 weeks.  The weekly benefit amount is the same as what the individual received in state benefits.

The EB program starts when a state's insured unemployment rate (IUR) climbs above 5.0 percent and is 20 percent higher than in the previous two years.  Michigan's IUR surpassed 5.0 percent for the week of January 10 and was 42 percent higher than the average for the same period for the last two years.  The week ending January 31 was the first week for which EB was payable.  Once EB triggers on, it remains in effect for at least 13 weeks.

UIA mailed letters to approximately 250 unemployed workers in the state that it identified as being potentially eligible for EB at this time.  Going forward, unemployed workers will automatically receive notices to file for EB when they are about to exhaust their final EUC benefit payments.  The notice will tell them how to apply for EB.

Extended Benefit costs are shared 50/50 by the federal government and the state for most employers.  The state's share comes from the UI trust fund and is then charged on a prorated basis back to the employer(s).  Governmental employers are charged 100 percent for EB.

In Michigan, the state unemployment insurance program provides up to 26 weeks of benefits, the first federal Emergency Unemployment Compensation (EUC) program provides up to 20 weeks of benefits, the second part of EUC grants up to 13 additional weeks and EB will now provide up to 13 more weeks of benefits to qualified unemployed workers.