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New Changes to Unemployment Insurance

debit card There will be some new changes to how unemployment insurance works in several states. Even though it is a federal program, each state can make their own decisions about how the program will run in their state. Notable changes will be happening to California, Indiana, and Illinois.

Unemployment insurance is designed to help out people who have lost their jobs, through no fault of their own. You have to be an American citizen in order to qualify for unemployment insurance. I think that every state requires people who are receiving these types of benefits to continue to look for work, and to report whatever money they earn from the jobs that they found.

There are going to be some changes to how unemployment insurance benefits will be distributed in Illinois and California. In each state, the changes will involve the unemployment debit cards.

Illinois will be changing from issuing benefits through a blue Visa debit card, to issuing them through a red MasterCard debit card instead. If you are someone who is currently getting your unemployment insurance through the blue Visa, you are going to need to spend whatever the remaining balance is on that card.

You cannot transfer money from the blue Visa to the red MasterCard. You can, however, remove the money from the blue Visa at any bank that accepts Visa. After July 1, 2011, your unemployment insurance benefits will start coming through the red MasterCard, and that is how things will be from that point on.

In California, the Employment Development Department is going to start issuing unemployment insurance benefits through an EDD Debit Card, (which is a Visa). It is supposed to be arriving “soon”. Once it does, your unemployment insurance benefits will be issued through the new EDD Visa Debit Card. It will replace the paper checks that are currently being sent to your mailbox every two weeks. This is supposed to make it quicker and easier for people to receive their benefits. You can even have them directly deposited into your bank account.

Indiana is making several changes that will go into affect on July 1, 2011. From that point on, people who receive unemployment insurance benefits will have to submit to mandatory drug screenings.

You must continue to look for work, just like before this change. An employer has the right to ask you to take a drug test before you are hired. If you fail that drug test, or refuse to take it, then you will no longer be receiving unemployment insurance benefits. The state of Indiana will consider that failure, or refusal, to be the same as if you were not looking for work, or if you had refused work from an employer.

Other changes will affect people who work “as-needed”. You will no longer be able to collect benefits if you received pay during a specific week, or if you refused any work that week. If you work for a Head Start program, you are not allowed to receive unemployment benefits while on a planned break (such as summer vacation).

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