In February 2009, President Obama signed the Assistance for Unemployed Workers and Struggling Families Act. This law provides funding for the Extended Benefits (EB) program. By enacting new legislation, New Jersey now qualifies for this recently funded EB program. This means that qualified people in New Jersey are now eligible to receive up to a maximum of 72 weeks of unemployment benefits (26 weeks of regular state UI benefits, up to 20 weeks of EUC Tier I benefits, up to 13 weeks of EUC Tier II benefits, and up to 13 weeks of EB benefits).

Under this new program, people who are currently getting unemployment benefits should soon receive automatic extension notices. After claimants use all of their benefits under one program, the Department of Labor (DOL) will mail them notices about their eligibility for the other extended benefit programs. The DOL will automatically enroll qualified claimants into the next extension program after their last checks are mailed.

The extended benefits programs have additional certification requirements, and claimants in these programs should read all notices carefully. People who fail to meet these requirements may be disqualified from benefits.

Another new program enacted through the American Recovery and Reinvestment Act (ARRA) provides an extra $25 per week to people who now receive unemployment benefits. The Federal Additional Compensation (FAC) program provides a weekly $25 payment for people receiving benefits under some federal programs, including:

• Regular Unemployment Insurance (UI);
• Extended Unemployment Compensation (EUC);
• Self-Employment Assistance (SEA);
• Trade Act (TRA);
• Unemployment Compensation for Federal Employees (UCFE); and
• Unemployment Compensation for Ex-Service members (UCX).

FAC payments are made in addition to regular UI and extended benefit payments and will not reduce the amount of a benefit claim. Like UI benefits, FAC benefits are considered taxable income and will appear on a claimant’s 1099-G forms.

People who qualify for FAC payments are eligible for the $25 payment for each week of benefits paid, beginning with the week ending February 28, 2009. FAC benefits will extend through the week ending July 3, 2010. The DOL has started to make these payments, which are mailed separately in a blue envelope to prevent confusion and decrease the possibility that a recipient might accidentally throw it away. For those who have elected to receive benefits through direct deposit, FAC payments will appear as a separate entry.

If you have additional questions about unemployment benefits, please call LSNJ-LAW™, Legal Services of New Jersey’s statewide, toll-free legal hotline. The hotline telephone number is 1-888-LSNJ-LAW (1-888-576-5529) or (732) 572-9100 if you are calling from outside New Jersey. Hotline hours are Monday through Friday, 8 a.m. to 5:30 p.m. If you are not eligible for assistance from Legal Services, the hotline will refer you to other possible resources.

This article originally appeared in the April 2009 issue of Looking Out for Your Legal Rights^®.