Sequestration Cuts on Emergency Unemployment Compensation (EUC)

Rev. 9/24/13

The Budget Control Act of 2011 requires mandatory budget cuts to the federal Emergency Unemployment Compensation (EUC) program. This reduction is known as sequestration. All states were notified that beginning on or after March 31, 2013, EUC payments must be reduced. Individuals receiving federal Emergency Unemployment Compensation will be sent a revised EUC monetary determination showing the new weekly benefit amount and corresponding remaining balance.

In Hawaii, sequestration began on April 28, 2013 and all EUC benefits are reduced by 12.8% for the period beginning 04/28/13 to 09/28/13. The new federal fiscal year begins on October 1, 2013 resulting in changes to the sequestration of EUC benefits.

Individuals currently on EUC prior to or as of October 12, 2013, will continue to be subject to the 12.8% reduction in EUC benefits. Individuals filing a new EUC claim beginning October 13, 2013 and beyond, will not be subject to sequestration.

The EUC program ends on January 01, 2014 and the last payable week of EUC benefits will be for the week ending December 28, 2013. Please check our website for updates as more information becomes available.

There are no changes to the claim filing process. Continue to submit your weekly or bi-weekly EUC claim certifications when due. You must continue to actively seek work by making at least 3 job contacts per week and keep a log of your work search on Form UC-253 “Record of Contacts Made for Work”. Please note that the Unemployment Insurance Division is required by federal law to conduct random audits of your work search and verify your work search activity. If selected, you will be requested to turn in your work search log.

Individuals receiving regular unemployment insurance benefits are not subject to the sequestration cuts.