Unemployment Law

Insurance benefits paid by the state or federal government to individuals who are involuntarily out of work in order to provide them with necessities, such as food, clothing, and shelter. Unemployment compensation for U.S. workers was established by the federal Social Security Act of 1935 (42 U.S.C.A. §§ 301 et seq.). Unemployment insurance provides workers who have lost their job through no fault of their own with monetary payments for a given period of time or until they find a new job. This compensation is designed to give an unemployed worker time to find a new job equivalent to the one lost without major financial distress. Unemployment compensation is also justified as a way to provide the U.S. economy with consumer spending during an economic downturn.

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