Unemployment insurance in West Virginia

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  • Steward Machine Co. v. Collector of Internal Revenue
  • Carmichael v. Southern Coal & Coke Company
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  • Sherbert v. Verner
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  • California Department of Human Resources Development v. Java
  • Geduldig v. Aiello
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  • Thomas v. Review Board of the Indiana Employment Security Division
  • United States v. Lee
  • Hobbie v. Unemployment Appeals Commission of Florida
  • Frazee v. Illinois Department of Employment Security
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• Unemployment insurance in the states
• Reform proposals related to unemployment insurance
• Unemployment insurance reform activity in the states
• Index of articles about unemployment insurance

Unemployment insurance
• Terms and definitions • Court cases • Unemployment insurance programs in the states • Reform proposals related to unemployment insurance • Reform activity in the states related to unemployment insurance • Index of articles about unemployment insurance
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See also: Unemployment insurance in the states

Unemployment insurance is a term that refers to a joint federal and state program that provides temporary monetary benefits to eligible laid-off workers who are actively seeking new employment. Qualifying individuals receive unemployment compensation as a percentage of their lost wages in the form of weekly cash benefits while they search for new employment.

The federal government oversees the general administration of state unemployment insurance programs. The states control the specific features of their unemployment insurance programs, such as eligibility requirements and length of benefits.

Although the word insurance is in the term, a few key differences distinguish unemployment insurance from private insurance plans such as home insurance, car insurance, or health insurance. In most states, employers—rather than individuals themselves—pay unemployment taxes that fund state unemployment insurance programs. When an individual loses their employment (and meets eligibility requirements), state-administered unemployment insurance programs provide temporary monetary benefits to the former employee. Unemployment insurance compensation is not intended to replace lost wages; it is designed to replace a portion of the individual's lost wages with the goal of providing financial support as an individual searches for a new job.

This page provides information about the unemployment insurance program in West Virginia.

Background

See also: Unemployment insurance

The joint federal-state unemployment insurance program provides temporary monetary payments to individuals who have lost employment through no fault of their own. Laid-off workers must actively seek new employment in order to receive unemployment benefits.

The unemployment insurance program was established in 1935 through the Social Security Act (SSA). Congress at the time aimed to develop a means to help mitigate the effects of widespread job losses that had occurred during the Great Depression. Due to concern that the U.S. Supreme Court would find a national unemployment insurance program unconstitutional, Congress designed a federal payroll tax mechanism that incentivized states to set up their own unemployment insurance programs under the direction of broad federal guidelines. According to the program, states deposit unemployment insurance tax funds into the Federal Unemployment Trust Fund, which the federal government then credits to state accounts to pay unemployment benefits.

The federal government operates as a general overseer of state unemployment insurance programs in order to ensure proper program administration. States retain control over their specific programs and can determine state-specific conditions, such as eligibility requirements, benefit amounts, and duration of benefits. States with unemployment insurance programs that meet federal standards are eligible for federal grants to assist with administrative costs.

The West Virginia unemployment insurance program is administered by the West Virginia Department of Commerce.

Timeline of unemployment insurance program in West Virginia

The following timeline features selected key events in the history of West Virginia's unemployment insurance program. The timeline is not a comprehensive history of the state unemployment insurance program.

• 1938: As of May 1, 1938, West Virginia's unemployment insurance program offered a maximum weekly benefit amount (WBA) of $15 for up to 12 weeks.

• 1985: As of January 1, 1985, West Virginia's unemployment insurance program offered a maximum WBA of $225 for up to 28 weeks.

• 2021: A March 2021 report from the U.S. Department of Labor found that the trust funds in 40 states and territories, including West Virginia, had dropped below the recommended minimum solvency standard as of January 1, 2021.

• 2022 West Virginia had an AHCM value of 0.69 as of March 2022.

• 2024: A March 2024 report from the U.S. Department of Labor found that West Virginia had an AHCM value of 0.81.

Finanzierung

See also: Unemployment taxes, Federal Unemployment Tax, State unemployment tax

The unemployment insurance program is funded by state and federal taxes on employers, or unemployment taxes.

While state tax amounts vary, the Federal Unemployment Tax Act (FUTA) tax is 6% of the first $7,000 of an employee's wages. Employers can receive an offset of up to 5.4% of their FUTA tax when they pay state unemployment taxes on time. An employer that receives the full 5.4% FUTA credit, therefore, pays 0.6% of the first $7,000 of an employee's wages, or $42, in FUTA tax per qualifying employee.

New employers begin paying into the unemployment insurance system at the new employer rate. Depending on state laws, employers that have paid unemployment insurance taxes for a set time period (usually a few years) receive an experience rating. The more unemployment claims an employer has, the higher their tax rate.

States that exhaust their unemployment insurance program reserves can borrow from the federal Treasury through the Title XII program. States must repay their unemployment insurance program debts within two to three years or the federal taxes on employers in the state automatically increase until the debt is paid. In states that are overdue in repaying unemployment insurance debt to the federal Treasury, the FUTA tax offset is reduced.

Vorteile

West Virginia Department of Commerce instituted changes to the state's unemployment insurance program during the coronavirus (COVID-19) pandemic. Click here for more information.

The standard term of unemployment benefits is 26 weeks, but specific terms vary by state. For example, Arkansas paid 16 weeks of benefits as of 2022. Massachusetts, on the other hand, paid 30 weeks of benefits and Montana paid 28 weeks of benefits.

The following sections provide information about specific benefits available through West Virginia's unemployment insurance program.

Length and amount of standard benefits

The West Virginia unemployment insurance program provided up to 26 weeks of benefits as of August 2024. Benefit amounts ranged from a minimum of $24 a week to a maximum of $424 a week.

Extended benefits

During periods of high unemployment, extended benefits up to 13 weeks, depending on the state, are available to workers who have otherwise exhausted their unemployment insurance benefits. Extended benefits up to 20 weeks may also be available in some states during periods of extremely high unemployment.

The West Virginia unemployment insurance program did not provide extended benefits as of August 2024.

Eligibility requirements

West Virginia Department of Commerce instituted changes to the state's unemployment insurance program during the coronavirus (COVID-19) pandemic. Click here for more information.

The following sections provide general information about unemployment insurance program eligibility as well as specific eligibility information for West Virginia's unemployment insurance program.

Background

Eligibility criteria for unemployment insurance recipients vary by state. In general, recipients must have lost employment through no fault of their own. The unemployment insurance program does not cover individuals who voluntarily leave their positions, who are fired for just cause, or who are seeking to reenter the workforce after a voluntary exit. Nor do unemployment insurance programs generally cover first-time job seekers, students, self-employed individuals, gig workers, or undocumented workers.

States also require that recipients meet certain work and wage thresholds. Unemployed workers in most states must have worked for a minimum amount of time or must have received a minimum amount of earnings from their employer (between $1,000 to $5,000 in 2019) in order to be eligible to receive benefits.

States generally require individuals to perform the following tasks in order to maintain weekly eligibility, according to the U.S. Department of Labor:

"

File weekly or biweekly claims, usually by mail or phone. Be able to work, available to work, and actively seek work each week you claim benefits. Report any earnings from work you had during the week(s). States have different rules for how much money you can earn while receiving benefits. Report any job offers or job offers you decline during the week. If requested, report to your local UI claims office or American Job Center on the scheduled day and time. Benefits may be denied for those who do not attend. Some states require registration for work with the State Employment Service, so it can assist you in finding employment. Meet any other state eligibility requirements.

”

Recipients must report their unemployment insurance benefits as part of their gross income on their tax returns.

West Virginia eligibility requirements

Unemployment insurance recipients in West Virginia must meet the following criteria in order to qualify for benefits:

• Recipients must have lost employment through no fault of their own.
• Recipients must have earned wages in two or more calendar quarters during the base period—the first 12 months of the 15 months prior to filing a claim. Wages earned during the base period must total at least $2,200.
• Recipients must be unemployed or partially employed and earning less than their weekly unemployment insurance benefits.
• Recipients must be able and available to work.

Unemployment insurance program solvency

The following sections provide general information about unemployment insurance program solvency as well as specific information about the solvency of West Virginia's unemployment insurance program.

Background

Federal unemployment insurance program guidelines recommend that states hold at least one year of projected benefit payments in reserves. States base the year of projected benefit payments on the highest level of unemployment insurance payments experienced during the last 20 years.

States determine their program solvency by using the Average High Cost Multiple (AHCM)—the ratio of the state's trust fund balance to the average of its three highest years of unemployment insurance payments. States with an AHCM below 1.0 risk insolvency.

As of a January 2024 report, 18 states had trust funds operating at or above the minimum solvency standard. Two states had trust funds with the lowest (least solvent) AHCM value of 0.00.

The map below identifies AHCM values by state as of January 2024. States shaded green have AHCM values above 1.0, while red states have AHCM values of 0.00. Gray states have AHCM values above 0.00 but below 1.0.

AHCM values by state, January 2024
State	AHCM value
Alabama	1.02
Alaska	2.16
Arizona	0.87
Arkansas	1.09
California	0.00
Colorado	0.10
Connecticut	0.01
Delaware	1.13
Florida	0.70
Georgien	0.45
Hawaii	0.44
Idaho	1.42
Illinois	0.23
Indiana	0.68
Iowa	1.40
Kansas	1.63
Kentucky	0.44
Louisiana	0.72
Maine	1.80
Maryland	1.09
Massachusetts	0.53
Michigan	0.41
Minnesota	0.51
Mississippi	1.24
Missouri	0.61
Montana	1.44
Nebraska	1.39
Nevada	0.58
New Hampshire	0.97
New Jersey	0.21
New Mexico	0.58
New York	0.00
North Carolina	1.06
North Dakota	1.07
Ohio	0.41
Oklahoma	0.57
Oregon	2.12
Pennsylvania	0.13
Rhode Island	0.77
South Carolina	1.07
South Dakota	1.86
Tennessee	0.72
Texas	0.19
Utah	1.18
Vermont	0.83
Virginia	0.79
Washington	0.64
Washington, D.C.	0.72
West Virginia	0.81
Wisconsin	0.64
Wyoming	2.17

Unemployment insurance program solvency in West Virginia

West Virginia had an AHCM value of 0.81 as of January 2023.

Unemployment insurance expansion during the coronavirus (COVID-19) pandemic

See also: Federal government responses to the coronavirus (COVID-19) pandemic, 2020-2021

The federal government expanded unemployment insurance benefits during the coronavirus (COVID-19) pandemic in order to provide financial support to affected individuals and businesses.

Coronavirus Aid Relief and Economic Security (CARES) Act

The U.S. House of Representatives on March 27, 2020, passed the Coronavirus Aid Relief and Economic Security (CARES) Act to provide financial relief to individuals and businesses impacted by the coronavirus pandemic. President Donald Trump (R) signed the legislation on March 27. Among the provisions in the act, Congress earmarked roughly $260 billion to expand unemployment insurance benefits across the country. The act supplemented state unemployment insurance payments by increasing the number of weeks an individual could receive benefits and by providing individuals with an additional $600 per week on top of what they would normally receive.

American Rescue Plan

The American Rescue Plan, signed by President Joe Biden (D) on March 11, 2021, extended federal unemployment insurance programs related to the coronavirus (COVID-19) pandemic, including the federal government's $300 per week add-on to state unemployment benefits, through September 6, 2021. The legislation also extended unemployment benefits for self-employed and gig workers, extended benefits for unemployed mixed earners (people who earned money through employment and self-employment), and extended the number of weeks individuals could receive unemployment.

Supplemental unemployment insurance benefits during the coronavirus (COVID-19) pandemic

The CARES Act and the American Rescue Plan established the following supplemental unemployment insurance programs during the coronavirus (COVID-19) pandemic:

• Federal Pandemic Unemployment Compensation (FPUC)
  

The Federal Pandemic Unemployment Compensation (FPUC) program aimed to provide qualifying unemployment insurance claimants with a supplemental $300-$600 per week in addition to their state unemployment insurance benefits. The program expired on September 6, 2021.

• Pandemic Emergency Unemployment Compensation (PEUC)
  

The Pandemic Emergency Unemployment Compensation (PEUC) sought to provide 24 weeks of extended unemployment insurance benefits to recipients who have exhausted their standard benefits. The program expired on September 6, 2021.

• Pandemic Unemployment Assistance (PUA)
  

The federal Pandemic Unemployment Assistance (PUA) program aimed to provide individuals who are out of work but ineligible for standard unemployment insurance benefits with $300-$600 in weekly compensation. Qualifying individuals included workers who are not eligible for standard benefits, such as independent contractors and self-employed workers, as well as individuals who have exhausted their standard benefits, extended benefits, or PEUC benefits. The program expired on September 6, 2021.

• Lost Wages Assistance (LWA)
  

The Lost Wages Assistance (LWA) program aimed to provide individuals receiving at least $100 per week in standard unemployment insurance benefits, PEUC benefits, or PUA benefits with an additional $300 per week. The federal government paid $300 per week in LWA benefits to qualifying individuals while state governments contributed $100 per week, either in the form of standard or supplemental benefits. The program aimed to provide benefits from August 1, 2020, to December 27, 2020, but funding was depleted by September 5, 2020.

• Mixed Earners Unemployment Compensation (MEUC)
  

The federal Mixed Earners Unemployment Compensation (MEUC) program sought to provide an additional $100 per week to individuals receiving unemployment insurance benefits who earned at least $5,000 through self-employment in the tax year prior to their claim. Claimants receiving PUA benefits were ineligible for MEUC benefits. The program expired on September 6, 2021.

Supplemental unemployment insurance benefits in West Virginia during the coronavirus (COVID-19) pandemic

Eligible West Virginia residents could qualify for the following supplemental unemployment insurance benefits made available during the coronavirus (COVID-19) pandemic:

Supplemental unemployment insurance program benefits in West Virginia during the coronavirus (COVID-19) pandemic
Program	Vorteile
Federal Pandemic Unemployment Compensation (FPUC)	*$600 per week (weeks ending April 4 through July 31, 2020) *$300 per week (weeks ending January 2 - June 19, 2021)
Pandemic Emergency Unemployment Compensation (PEUC)	*$600 per week (weeks ending April 4 - July 25, 2020) *$300 per week (weeks ending January 2 - September 6, 2021)
Pandemic Unemployment Assistance (PUA)	*$600 per week (weeks ending April 4 through July 31, 2020) *$300 per week (weeks ending January 2 - September 6, 2021)
Lost Wages Assistance (LWA)	*$300 per week if an individual's standard or PEUC benefits totaled at least $100 per week
Mixed Earners Unemployment Compensation (MEUC)	*$100 per week (weeks ending January 2 - September 6, 2021)

Noteworthy events

West Virginia bill to maintain weekly unemployment insurance benefit amounts and change taxable wages becomes law without governor’s signature (2024)

West Virginia Senate Bill 841 became law without the governor's signature on March 27, 2024, changing the wage base on which employers paid state unemployment insurance taxes to the first $9,500 of employees' wages. It also froze the maximum weekly benefit amount for workers at $662, and was scheduled to take effect January 1, 2025.

West Virginia lawmakers consider bills to reduce unemployment insurance benefits (2024)

West Virginia lawmakers on February 19, 2024, introduced two bills related to unemployment insurance, proposing to index the length of unemployment insurance benefits to the state's unemployment rate and reduce the maximum benefit amount in relation to the state's average weekly wage. Senate Bill 840 would reduce the maximum number of benefit weeks to 12 weeks when the unemployment rate is below 5.5 percent. The bill would cap the maximum benefit length at 20 weeks when the unemployment rate is 9.0 percent or above. Unemployment insurance benefits currently last for up to 26 weeks in West Virginia, and the unemployment rate is 4.3%, meaning the maximum length of benefits would fall from 26 to 12 weeks if the bill becomes law. Senate Bill 841 would reduce the maximum weekly unemployment insurance benefit from 66.3% to 55% of the state's average weekly wage, not to exceed $550. Similar bills were introduced in 2022 and 2023. Both passed the state Senate but never advanced out of the West Virginia House of Delegates.

West Virginia withdraws from Federal Pandemic Unemployment Compensation Program

Gov. Jim Justice (R) on May 14, 2021, announced the state would end its participation in the Federal Pandemic Unemployment Compensation Program (FPUC) prior to its September 6, 2021, expiration. FPUC provided an extra $300 of weekly federal benefits under the American Rescue Plan, signed on March 11, 2021. FPUC benefits ended on June 19, 2021.

For more information on states that ended FPUC benefits early, click here

See also

• Unemployment insurance
• Unemployment insurance fraud in West Virginia
• History of unemployment insurance fraud in West Virginia