labor lawAdivision of labor law center

In a recent speech, Assistant U.S. Secretary of Labor for Employment and Training Emily DeRocco said, “Strong regional economies that are built on maximizing talent and innovation will be crucial to the nation’s success in the global economy.”

This philosophy is the guiding light for WIRED, or Workforce Innovation in Regional Economic Development; a federal government initiative meant to help the regions with an impoverished economy. In spite of the robust economic health of the United States, some regions of the country suffer from poor economy and high unemployment rates.

Some of the  areas that have received grants include the Wasatch Range in Utah, Northern Alabama, Northern California, the Delaware Valley Tri-State Area, Southeastern Michigan, Appalachian Ohio, and the Rio Grande Valley in Texas Southern Tennessee, Southwestern Connecticut, Southeastern Wisconsin, Northern Indiana and the Arkansas/Mississippi Delta.

The third phase of WIRED grants is current in the bidding process. WIRED gives money to the regions in question, to train their workforce and bring them into the position where they can make a positive contribution to the country. In the first phase, $195 million has been given away in thirteen regions across United States. In the second phase, another $65 million will be distributed. The disbursal of money is based on a competition involving state governors.

This money is expected to make some very healthy changes in the lives of the people of Northern California. On the occasion of this announcement regarding California, U. S. Secretary of Labor Elaine Chao said, “Investing in area workforces through this collaborative approach will boost entire regions’ economic vitality. This regional economic development strategy transcends political boundaries to better leverage a region’s assets to help workers succeed in the 21st century worldwide economy.”

The initial California Unemployment Grant will be $5 million from WIRED. The will be given $500,000 initially, as a gift. The rest of the money will be given to them when they have prepared a regional implementation plan. 

Many workers receiving California unemployment benefits are not aware that their income from this program is taxable. 

California unemployment recipients must file both state and federal income tax returns reporting these benefits as income.  For purposes of documenting this income and the taxes generated by it, California’s Department of Labor issues a Form 1099 to each worker receiving benefits.  This form must accompany the worker’s state and federal income tax returns. 

In late January, the California Department of Labor mailed a 1099 to each worker who received unemployment compensation during 2006.  All workers should have received their 1099 earning statements by the middle of February.  In a situation where the form 1099 wasn’t received on time, the worker is urged to contact his or her nearest branch of the state’s Department of Labor for assistance in securing a duplicate 1099.  Staff members at these branch offices are happy to help California workers secure an accurate 1099.  Address verification is required to make sure the duplicate 1099 generated is received as soon as possible.  Assistance is available for anyone needing a duplicate 1099 for 2006 or any year before that. 

State and federal income taxes generated by unemployment benefit payments added up to more than $12 million in California for 2006.  The economic value to the state’s economy is remarkable.  Says an unnamed official at the Department of Labor, “Unemployment Insurance benefits not only help workers get by during times of unemployment, it helps stimulate our California economy.” The official adds, “With more than $222 million in benefits going out during the year, our state has given significant assistance to both workers and employers in 2006.” 

California assists workers during times of need in several ways.  The standard unemployment benefit payments are sometimes extended due to extenuating circumstances.  Other workers receive financial aid through the Trade/Readjustment Assistance program.  

For workers in Northern California, relief is spelled W.I.R.E.D. Technically, the program is the Workforce Innovation in Regional Economic Development initiative, although it is usually referred to by the acronym WIRED. WIRED is a program conducted by the U.S. Department of Labor to improve the economy in troubled regions by training workers.

The WIRED program is a successful program by the U.S. Labor Department’s Employment and Training Administration to help struggling regional economies in several states. “Investing in area workforces through this collaborative approach will boost entire regions’ economic vitality,” U. S. Secretary of Labor Elaine Chao said when announcing a recent California unemployment grant.  

The grant includes an initial gift of $500,000 for training in the area. Part of the WIRED effort, the recent program includes a California unemployment grant of up to $5 million to train workers in the Northern California area. After a regional plan is crafted, the region will be given an additional $4.5 million grant under the federal program.

Under this program, the Northern area will use the California unemployment grant to improve the area economy by training employees. The grants are awarded based on a competition involving the state governors. The first group of WIRED grants awarded $195 million to 13 regions. WIRED has proven highly successful in recent years in improving an area’s unemployment.  In total, this second round of WIRED grants will exceed $65 million.

The most recent WIRED program of up to $4.5 million dollars is a California unemployment grant to help workers in California’s Northern region. The region has long suffered high unemployment and poor economic performance. WIRED addressed underperforming area economies by training workers.  The U. S. Department of Labor recently announced that many California workers are among those to benefit from a grant of up to $65 million.

Secretary of Labor Chao proclaims, “This regional economic development strategy transcends political boundaries to better leverage a region’s assets to help workers succeed in the 21st century worldwide economy.”  

California Unemployment Insurance posters were just updated at the beginning of 2006 by the Unemployment Reserves Commission, which is administered by the California Employment Development Department (EDD).

The California Unemployment Insurance posters show that for 2006 the California Unemployment Insurance taxable wage limit is $7,000 per employee, per year. The California Unemployment Insurance tax rate for new employees is 3.4 percent (.034) for up to three years. The UI tax rate for experienced employees varies based on each employee’s experience and the balance in the UI Fund. The 2006 maximum weekly benefit award is $450.

To have a valid UI claim, employees (as defined by California Unemployment Insurance posters) must have earned $1,300 or more in covered employment in one quarter of the base period, or $900 or more in covered employment in the base-period quarter with the highest earnings, and earned at least 1.25 times the high quarter earnings during the entire base period.

The EDD schedules fact-finding interviews when there are eligibility questions regarding a claim. EDD staff will talk to the claimant, employer, and anyone else necessary to make a decision. Based on the decision, benefits will either be paid or denied. If benefits are denied, a notice will be issued to the claimant. If the employee responds timely to the first notice sent by the Department and addresses the issue being decided, a notice will also be sent to the employer.

A Notice of Unemployment Insurance Claim Filed is mailed to the last employer when a former employee files a new UI claim or an existing claim is reopened.

A Notice of Wages Used for Unemployment Insurance (UI) Claim is mailed to all base-period employers after a claimant receives the first UI payment. This notice informs each employer of the wages used to establish the claim and the amount of potential charges to their UI reserve account for that claim because all or part of the benefits paid may be charged to the employer’s UI reserve account. You can view all the most recent unemployment insurance information on the California Complete Labor Law poster.