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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
unemployment insurance; benefit amounts
Purpose
Modifies the duration of unemployment insurance (UI) benefits that a person may receive during a benefit year, based on the unemployment rate (UR) during the prior calendar quarter.
Background
The federally established UI Benefit Program, administered by the Department of Economic Security according to state law, provides unemployment benefits to persons unemployed through no fault of their own. Statute prescribes eligibility requirements relating to the reason for separation from employment, wages earned prior to unemployment and the individual's availability and work search activities. Benefit payments are paid from Arizona's Unemployment Insurance Trust Fund which is financed by a tax that employers pay on the first $8,000 of wages paid to each employee in a calendar year (A.R.S. Title 23, Chapter 4).
An otherwise eligible individual is entitled during a benefit year to a weekly benefit amount (WBA) for the following durations: 1) 24 weeks, if the prior calendar quarter UR is less than 5 percent; or 2) 26 weeks, if the prior calendar quarter UR is 5 percent or more (A.R.S. § 23-780). Subject to a cap of $320, the WBA of an eligible unemployed individual is equal to 1/25 of their highest quarter earnings during the first four quarters of the most recently completed five quarters. An unemployed individual may earn up to $160 in a week for less than full-time work with no reduction to their WBA. Earnings in excess of the $160 income disregard are subtracted from the WBA for which the individual qualifies (A.R.S. § 23-779).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Modifies the duration during a benefit year that a person may be entitled to UI benefits as follows:
a) 12 weeks, if the prior calendar quarter UR is 5 percent or less
b) 14 weeks, if the prior calendar quarter UR is more than 5 percent but not more than 5.5 percent;
c) 16 weeks, if the prior calendar quarter UR is more than 5.5 percent but not more than 6 percent;
d) 18 weeks, if the prior calendar quarter UR is more than 6 percent but not more than 6.5 percent;
e) 20 weeks, if the prior calendar quarter UR is more than 6.5 percent but not more than 7 percent;
f) 22 weeks, if the prior calendar quarter UR is more than 7 percent but not more than 7.5 percent;
g) 24 weeks, if the prior calendar quarter UR is more than 7.5 percent but not more than 8 percent; and
h) 26 weeks, if the prior calendar quarter UR is more than 8 percent.
2. Becomes effective on the general effective date.
House Action
COM 2/4/25 DP 6-3-1-0
3rd Read 2/20/25 32-26-2
Prepared by Senate Research
March 13, 2025
MG/ci