Legislative Trends in Unemployment Insurance
Unemployment insurance eligibility, benefit amounts and system administration remained a topic of high interest for state policymakers in 2024.
Unemployment insurance (UI) is a state-federal partnership providing temporary financial assistance to eligible workers who lose their jobs through no fault of their own. Each state administers its own UI program while following federal guidelines that establish basic standards.
All state UI programs are funded through employer payroll taxes and require claimants to actively seek work while receiving benefits.
At least 23 states enacted changes to their unemployment insurance laws in 2024. Key legislative activity remained focused on tweaking UI eligibility requirements, addressing fraud and improving processes.
Fraud and Actively Seeking Work
All states require claimants to actively seek work to remain eligible for benefits. In 2024, several states enacted clarifications to what is and is not allowed during the search for employment.
In a change from the existing policy, New Hampshire expanded benefit eligibility to claimants seeking remote work. Prior to 2024, workers had to be seeking and available for work outside the home with few exceptions. Under the new law, claimants may qualify for benefits if their remote work “offers a reasonable expectation of substantial employment opportunities.”
Two states took steps to tackle claimants who don’t show up at job interviews, also called “ghosting.” Maryland enacted legislation to both define the practice and also direct its Department of Labor to study its effects. Included in the study will be a comparison of other states’ work search requirements and how claimant activities are verified. enacted similar legislation to clarify that not showing up for an interview constitutes a failure to apply for suitable work. The new law also updated the list of acceptable work search activities and changed the minimum requirement to five work search actions per week.
States are also finding ways to improve fraud detection, investigation and prosecution. Louisiana enacted a comprehensive bill which mandated criminal referrals for fraud cases exceeding $1,000. If convicted, claimants will be disqualified from benefits for up to 10 years or until the benefits and penalties are repaid, whichever comes first.
Utah directed its Department of Workforce Services to maintain a website for employers to report fraud and instances of ghosting. South Dakota, in a similar vein, required benefit claimants be checked against new hire data.
System Modernization and Process Enhancement
The strain placed on state UI systems during the Covid-19 pandemic revealed infrastructure limitations and administrative bottlenecks that continue to challenge effective program delivery.
States responded with comprehensive modernization efforts to address both technological capabilities and administrative processes. states enacted legislation in 2024 which primarily focused on system improvements and program integrity.
Several states passed laws to streamline claims processing and improve system responsiveness. California established specific timeframes for initial benefit payments and introduced advance filing options, allowing claims to be initiated up to 30 days before anticipated eligibility. Delaware extended administrative deadlines and implemented electronic notification systems, providing both claimants and employers with more time to respond to determinations while reducing processing delays.
In separate legislation, Delaware also made significant changes to how it calculates employer taxes. The state replaced its traditional benefit wage ratio system with an updated benefit ratio methodology used by 19 other states. The new system will be implemented with graduated taxable wage base increases through 2027. Illinois took a different approach, expanding new hire reporting requirements to include independent contractors. This targeted update reflects a growing trend—states evolving to match a changing workforce.
A Final Word
Although 2024 marks the third straight year that fewer bills involving unemployment insurance were enacted than the previous year, interest in the topic remains high. NCSL tracks this status of these bills in the Unemployment Insurance Legislation Database.