Wages, Income, and Compensation under Unemployment Insurance

Abstract

The Social Security Act of 1935 did not establish a system of unemployment insurance. Its purpose was to encourage states to pass unemployment insurance laws in keeping with standards of approval as found in Social Security Act. Among these standards are specific requirements that a state shall not deny benefits to any individual who refuses to accept employment: (A) If position is vacant due directly to strike, lockout, or other labor dispute; (B) if wages, hours, or other conditions of work offered are substantially less favorable to individual than those prevailing for similar work in locality; (C) if as a condition of being employed individual would be required to join a company union or to resign from or refrain from joining any bona fide labor organization.'' Also, as defined in federal Social Security Act, the term 'wages' means all for employment, including cash value of all paid in any medium other than cash.'' To above have been added many provisos in state unemployment insurance laws which impose unduly restrictive qualifications upon applicant for unemployment insurance. These restrictions make it veritably impossible to differentiate between wages as remuneration for employment and which may be received in lieu of wages, for example, benefits under Title II of Social Security Act for retirement at age 65 and/or benefits from a pension plan operated by an employer, or benefits under workmen's compensation laws of any state or any similar law of United States. (Author's abstract courtesy EBSCO.)