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                                                                                        Updated February 26, 2018

Unemployment Compensation (UC) and Family Leave


In general, unemployed workers who voluntarily exit the
workforce for the care of a family member-including the
birth, adoption, or care of a child-would be ineligible for
unemployment compensation (UC) based upon their lack of
availability for work. Yet some of these individuals may be
eligible for UC benefits once they are available for work.
From 2000 until 2004, states had the ability to create a
program using UC funds to provide benefits to individuals
on leave or otherwise unemployed after the birth or
adoption of a child (i.e., to use UC to support workers on
parental leave). No state created such a program.


The joint federal-state UC program provides income
support through UC benefit payments. Although there are
broad requirements under federal law regarding UC
benefits and financing, the specifics are set out under each
state's laws. States administer UC benefits with U.S.
Department of Labor (DOL) oversight, resulting in 53
different UC programs operated in the states, the District of
Columbia, Puerto Rico, and the Virgin Islands. The UC
program's two main objectives are to (1) provide temporary
partial wage replacement to involuntarily unemployed
workers and (2) stabilize the economy during recessions.


To receive UC benefits, claimants must meet state
eligibility requirements, including

* loss ofjob through no fault of their own or had to quit
   job for a good cause reason.

* a sufficient, recent work and earnings history.

* must be able, available, and actively searching for work.

Although federal law establishes these broad requirements,
state law and regulations determine the specific thresholds
and definitions. DOL produces a compilation of state laws
and regulations, including state definitions of each of the
terms. See DOL, 2017 Comparison of State Unemployment
Insurance Laws, at https://workforcesecurity.doleta.gov/
unemploy/comparison2017. asp.

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Although the Family and Medical Leave Act of 1993
(FMLA; P.L. 103-3, as amended) provides eligible workers
with a federal entitlement to unpaid leave for a limited set
of family caregiving needs (including the care of and
bonding with a new child), no federal law requires private-
sector employers to provide paid leave of any kind.

Currently, employees may access paid family leave if
offered by an employer, and some workers in certain states


may combine state family leave insurance benefits with
unpaid leave. At the state level, there has been interest in
using the UC program to provide income support to
workers on unpaid leave covered by the FMLA. Currently,
states do not have the authority to provide UC benefits to
workers who are absent from work or unemployed as a
result of family caregiving responsibilities.

For more information on states that offer paid family leave
insurance, see CRS Report R44835, Paid Family Leave in
the United States.

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Depending on the state's UC laws and regulations, there are
three potential reasons why UC benefits may not be
available to an individual who is unemployed or on a leave
of absence because of the birth or adoption of a child. The
individual may be

    1. ineligible or disqualified because he or
        she is categorically excluded in state UC
        law or regulation,
    2. disqualified because the reason the
        individual left a job is not considered for
        good cause, or
    3. ineligible because he or she is not able,
        available, and actively searching for
        work.


To be eligible for UC benefits, individuals generally must
be laid off from a job and unemployed with respect to a
given week. Under some state UC laws, workers taking
family leave or other leaves of absence because of an
inability to work due to medical reasons may be considered
categorically ineligible for UC benefits.


In all states, individuals who leave their work voluntarily
must meet the state's good cause requirements if they are
not to be disqualified from receiving UC. In many states,
good cause is explicitly restricted to reasons connected with
the work, attributable to the employer, or involving fault on
the part of the employer. Some states specifically consider
quitting due to family obligations stemming from the illness
or disability of an immediate family member a good cause.
(For those states, see Table 5.5 in DOL, 2017 Comparison
of State Unemployment Insurance Laws, at
https://workforcesecurity.doleta.gov/unemploy/pdf/
uilawcompar/2017/nonmonetary.pdf.)


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