Compensation Glossary

Unemployment Compensation

Payments made under state-administered programs to workers who are unemployed and meet the requirements of the law involved to qualify for such payments. The requirements usually are (1) that the worker not be unemployed voluntarily. (2) That the worker has worked in employment that is 'covered' by the law. (3) That the worker be willing and able to take employment offered him or her. (4) That an initial period (the waiting period) of unemployment elapse before compensation is due. Programs are entirely employer financed except in four states that require small employee contributions.