Technology

As another side, a strategy companies are using lately to keep their UI costs low is providing a severance package that pays all or part of the employee’s salary but paying it out over time. Depending on the state and the rules for that state’s UI program, that often counts against any UI benefit the former employee would receive, reducing the weekly benefit (sometimes to $0). It’s a thing I’ve only seen in the past 5 or so years. I would expect States to start to recognize this end-run around the system and adjust the rules accordingly in the near future.

this is an old strategy. It's called "severance." Many company will offer a severance package before going to lay offs that enhance retirement packages (especially for people close enough to it anyhow) or otherwise entice people to take it, instead.

As an aside, UI is an insurance product sold (forcibly, by the State) to the employer. The employer pays a premium which rises or falls based on the number and cost of claims that employer generates. Naturally, employers are incentivized to reduce the number of claims to keep costs low, but it’s not, as is commonly thought, the employer paying benefits directly.

It would really, really, suck if you had to rely on a former employer to pay unemployment. Just saying.