In Indiana, unemployment insurance payments are set to stop Sept. 6. That is just a few days away, but 120,000 people have not received them yet. As the State Department of Workforce Development works to reinstate the benefits, the Governor has the authority to terminate the payments early. In the meantime, the unemployment insurance program has been affected by the recent ruling from the Indiana Supreme Court. However, some hope is still in sight. This article provides an update on the latest developments.
The Indiana unemployment insurance program is set to expire on Sept. 6. While the state may have stopped the program early because of a lawsuit, it has not stepped up and continued its benefits. Instead, the department of workforce development says it will accept applications back into the program and offer those who have been unemployed for a year the option of continuing to receive benefits. Claims must be made each week or biweekly. In addition, those who claim benefits each week must actively look for a job each week.
Governor Holcomb announced in May that the state was ending its participation in the federal pandemic unemployment insurance program. Although the federal benefits had originally been supposed to run through September 6, Indiana’s Republican Governor has said the program isn’t necessary. The U.S. Department of Labor states that if Indiana doesn’t extend the program, it may face financial penalties. The state’s unemployment rate has decreased from nearly 17% in August to 3.9% today.
A court ruling in Indiana on Friday ruled that the state should continue receiving federal unemployment payments. Chief Judge Cale Bradford ruled against the state’s request for a stay, allowing Indiana to participate in the federal program. However, a state court ruled that the Republican governor had the authority to withdraw the state from the federal program. The reinstatement of Indiana unemployment benefits will allow unemployed Hoosiers to afford necessities while searching for work.
The state is also facing a lawsuit from business owners who claim that the state has violated federal law in implementing the program. However, the state’s Attorney General’s Office has argued that the state cannot continue to provide the benefits to those who are unemployed. The state’s workforce development office would need to rework its information technology system if it decides to withdraw from the federal program.
While the CDC and WHO have updated their information on the coronavirus pandemic, the states that are opting out of the pandemic unemployment insurance program are urging workers to contact their local office to learn more about job re-entry programs and other resources available. While the pandemic unemployment insurance program ends on Sept. 6, the other three programs are set to end before the end of the year.
At least 120,000 Indiana Hoosiers haven’t been paid after filing for unemployment insurance last week, new figures show. The Indiana Department of Workforce Development released the numbers Tuesday. They doubled the prior week’s total, representing more than three percent of the state’s labor force. The highest number was seen in counties that depend heavily on manufacturing, with claims spiking by as much as a thousand percent.
A lawsuit has helped jobless workers in Indiana get the benefits they deserve. A judge has upheld a ruling that Indiana officials are required to collect federal insurance benefits and ensure that they are paid. In the meantime, a lawsuit filed by Indiana jobless residents in mid-June was followed by residents of at least four other states. The case aims to prevent these people from losing benefits too early. The lawsuit was a pioneering effort to block early termination of benefits.
Since the Indiana Department of Workforce Development has issued its decision, up to 120,000 Hoosiers will no longer receive federal unemployment benefits. The state’s decision came after a judge in Marion County ruled the state must comply with the judgment. A preliminary injunction will prevent claimants from being asked to return their payments. Earlier, Indiana’s unemployment rate was 11.2%. Today, it’s only 4.1%. The state’s unemployment fund has distributed $8.6 billion to 875,000 people since March 2020 – more than the previous five years combined.
The lawsuit, which was filed by the state’s attorney general’s office, sought to stop payments of federal unemployment benefits. Indiana’s state court of appeals rejected a state attorney general’s request to keep payments on hold. The state had argued that it could not continue paying benefits because it had withdrawn from the federal program and wouldn’t have time to withdraw again. The appeals court upheld the ruling on Monday. The ruling is not a permanent solution for Indiana’s unemployment problems.
State Department of Workforce Development working to reinstate benefits
The state of Indiana is attempting to reinstate pandemic unemployment benefits. A federal appeals court ruling last week ordered that the state must resume pandemic benefits, and the Indiana State Department of Workforce Development is attempting to comply with that ruling. The state may restart add-on benefits as soon as Friday, though the estimated restart date is July 16, 2021. It is still unclear what will happen to pandemic benefits if Indiana does not comply with the ruling.
The Indiana Department of Workforce Development said Friday that the court had ordered the state to resume pandemic payouts. They said thousands more will follow in the coming days. They are the first payments since mid-June and will be retroactive to the workweek that ended June 25. Those who missed the benefits should check their mailboxes for the check. A message on the Uplink pages will announce the reinstatement.
The lawsuit was filed by two legal organizations and argues that the governor’s action would prematurely impact thousands of Hoosiers. The Indiana Department of Workforce Development is now trying to reinstate the benefits as soon as possible. Thousands of Indiana residents are losing their jobs every day, but the Indiana Department of Workforce Development is working hard to make that happen. The federal government is providing millions of dollars in funds to help individuals in Indiana find new jobs. If you qualify for unemployment benefits, apply now.
The new program will expand eligibility for those who lost their jobs or hours due to the COVID-19 pandemic. Those who have been quarantined because of the virus may also be eligible. If you are a childcare worker and your school has closed, then you may qualify for state benefits. Additionally, the work search requirement has been waived for all claimants during the outbreak. But be aware that the state will continue to make changes.
In addition to extending eligibility for federal unemployment benefits, Indiana also plans to return the requirement that recipients must actively seek jobs and be available to work. During the pandemic, Holcomb waived that requirement. Holcomb is also weighing whether to participate in the federal pandemic unemployment program, which would expand eligibility and boost payments. Those receiving benefits will get up to $300 per week from the federal government.