Unemployment insurance is a program that allows funds that employers pay in to be accumulated, then disbursed to those who are unemployed if the separation was not due to the employee being at fault. It is a Federally mandated program, under the U.S. Department of Labor Employment and Training Administration. Unemployment insurance can be applied for when a person has been laid off, hours reduced, or the business closes. All of these situations are beyond the employee’s control. The unemployment insurance allows the employee to have some income while searching for new employment.
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