Extended Benefits - EB Law and Legal Definition

Extended benefits is a supplemental employee beneficial program that pays extended compensation during periods of specified high unemployment to employees for weeks of unemployment after (1) the employees earn the maximum potential claim to regular compensation within their benefit year or (2) before the completion of their benefit year, the employees are in continued unemployment status and have insufficient wage credits to establish a new claim provided, however, that the extended benefit period in the State began prior to the end of their benefit year. The extended benefits paid to claimants under State unemployment compensation law are jointly financed on a 50-50 basis by State and Federal funds; extended benefits paid to UCFE are totally financed by Federal funds.

The basic extended benefits program enhance up to 13 additional weeks of benefits when a State is experiencing high unemployment. Some States have also enacted a voluntary program to pay up to 7 additional weeks (20 weeks maximum) of extended benefits during periods of extremely high unemployment. Generally, the weekly benefit amount of extended benefits is equivalent as the employee received for regular unemployment compensation.