Massachusetts allows for the highest weekly benefit in the nation ($742/week) and longest duration to collect benefits (30-weeks).
Massachusetts was recently ranked worst in the nation for unemployment insurance taxes by the Tax Foundation. Massachusetts allows for the highest weekly benefit in the nation ($742/week) and longest duration to collect benefits (30-weeks).
Under an existing state law, if the 12-month average unemployment rate for each of Massachusetts’ metropolitan areas is equal to or below 5.1 percent, the weekly benefit period is reduced. Due to a prolonged time period of low unemployment, this law was triggered for the first time since its inception and will reduce the weekly UI benefit period to 26-weeks. The 26-week timeframe is the benefit period allowed in the vast majority of states.
The new 26-week benefit period will only apply to new claims filed after March 31, 2019, those claims filed before March 31st will still be eligible for 30-weeks. If the unemployment rate climbs again, the 30-week period will return. The cost savings associated with a reduction to 26-weeks is estimated to be $40 million in the first year and $84 million in the second year according the Executive Office of Labor and Workforce Development.
NFIB provided testimony on several bills regarding unemployment insurance reform last week before the Joint Committee on Labor and Workforce Development to end Massachusetts’ UI outlier status. NFIB provided comments: opposing extending weekly benefits for locked out workers (H1648 & H1662), preventing UI laws from including fluctuating work schedules (H1627 & S1075), supporting similar jobs being accepted by unemployed workers (H1646), favoring stricter eligibility standards (S1061), and most importantly, supporting a full repeal of the EMAC tax (H1647).
