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Unemployment Insurance

If employees lose their jobs through no fault of their own - because of a plant closure, layoff, natural disaster to the workplace, etc. - the Federal-State Unemployment Insurance (UI) Program provides unemployment benefits to eligible workers who are unemployed. It is temporary financial assistance to unemployed persons who meet the requirements of state law. Each state has its own UI program based on the outline provided by the federal law.

The Unemployment Insurance system is similar to an insurance policy purchased by the employer. During the employee’s job tenure, the employer pays premiums into a state fund. If the employee becomes unemployed through no fault of own, he/she can apply to receive money from that fund. The UI fund aids the unemployed for a specified number of weeks or until he/she finds another job, whichever occurs first.

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