California Economy Improves, but Rebound Leads to More Cuts in Federal Extension Benefits for the Unemployed

SACRAMENTO – As California’s economy continues to rebound from the recession, the
California Employment Development Department (EDD) is warning long-term
unemployed individuals that they may no longer be eligible for the last tier in federal
unemployment extension benefits. That’s because California’s unemployment rate is on
track to dip below a three-month average of 9% – the minimum level required by federal
guidelines in order to provide the final ten weeks of additional benefits associated with a
Tier 4 federal extension.
With the solid trend in declining unemployment, the EDD anticipates receiving official
notification from the U.S. Department of Labor (DOL) on Friday, July 19, 2013, when the
state’s unemployment rate for June will be released. Such notification will mean that any
claimant who would have filed a Tier 4 extension on August 11, 2013, or later, will not be
eligible for Tier 4 benefits.
Anyone starting a Tier 4 extension prior to August 11th and who continues to remain
otherwise eligible will be allowed to collect the remainder of their Tier 4 extension
benefits until exhausted or December 28, 2013 – whichever comes first. Tier 4 benefits
have been available after someone runs out of their regular state-provided benefits of up
to 26 weeks and then Tiers 1, 2 and 3 of federal extension benefits.