Important Change to Arizona’s Unemployment Insurance Program - Effective July 1, 2022

Changes to Arizona state law will affect Arizona’s Unemployment Insurance (UI) Benefits system, beginning July 1, 2022, in the following ways:

Change 1: The Number of Weeks Claimants are Eligible for Benefits

Important Points:

• If the unemployment rate in Arizona drops below 5%, the maximum number of weeks claimants can be eligible for benefits will change from 26 weeks to 24 weeks (per A.R.S. § 23-780).
• Arizona’s unemployment rates are tracked and published by the Arizona Office of Economic Opportunity and can be found on Arizona’s Office of Economic Opportunity Unemployment Rate webpage.
• Currently, the Unemployment Rate in Arizona is 3.2%.

How this change will affect claimants:

• Since the Unemployment Rate is less than 5% (currently 3.2%), the maximum number of weeks in which you are eligible for UI benefits is 24 weeks.
• If you were overpaid for more than 24 weeks, a separate determination of overpayment will be mailed to you. This overpayment is classified as ‘Administrative’ and will be waived by the Department.

Change 2: The Amount Claimants can Earn Each Week Without Affecting their Weekly Benefit Amount

Important Points:

• Previously, claimants couldn’t earn more than $30.50/week without their weekly benefit amount being affected. Now, claimants can earn up to $160.49/week and still receive their full weekly benefits.

How this change will affect claimants:

• In addition to receiving UI benefits, claimants can now earn up to $160.49/week and still receive their full weekly benefits. If claimants earn more than $160.49 in a week, their benefit amount will be reduced.

Change 3: The Maximum Weekly Benefit Amount will Change for Claimants who Begin Receiving Benefits on or after July 1, 2022

Important Points:

• The maximum weekly benefit amount for which Arizonans can be eligible is increasing.

How this change will affect claimants:

• Claimants whose claims were opened prior to July 1, 2022, will not be affected by this revision.
• The maximum weekly benefit amount is only available to claims that are opened on July 3, 2022, and after and meet the wage requirements for eligibility. However, claimants are not guaranteed to get the full amount of the $320 per week allotted maximum weekly benefit amount. The amount a claimant is eligible to receive is based on the wages they earned when they were working. Beginning July 1, 2022, new claims will be eligible to receive a weekly benefit amount of between $200 and $320.

Frequently Asked Questions

What are the upcoming changes to the UI program and how does it affect me?

In 2021, the Arizona State Legislature passed a bill that will change Arizona’s Unemployment Insurance (UI) benefits, effective July 1, 2022, in the following 3 ways:

• Maximum Weekly Benefit Amount Increases: New claimants who open a new claim on or after July 3, 2022, can qualify for up to $320.00 in UI benefits each week. Claimants who were eligible before July 3, 2022, are not eligible for this potential increase in weekly benefits.
• Increase in Wage Allowance: Previously, you couldn’t earn more than $30.50/week without your weekly benefit amount being affected. Beginning July 1, 2022, you can earn up to $160.50/week and still receive the full weekly benefit amount.
• Benefits Duration: Beginning July 1, 2022, if the unemployment rate in Arizona drops below 5%, the maximum number of weeks claimants can be eligible for UI benefits will decrease from 26 weeks to a total of 24 weeks (per A.R.S. § 23-780). As of June 2022, the unemployment rate in the prior calendar quarter has dropped below 5% and the new maximum benefit award will be 24 times the claimant’s weekly benefit amount (a maximum of 24 weeks of benefits). Arizona’s unemployment rates are tracked and published by the Arizona Office of Economic Opportunity and can be found on Arizona’s Office of Economic Opportunity Unemployment Rate webpage.

Will all claimants be eligible for the maximum weekly benefit amount of $320?

No. The maximum weekly benefit amount is only available to claims that are opened on July 3, 2022, and after and meet the wage requirements for eligibility. However, claimants are not guaranteed to get the full amount of the $320 per week allotted maximum weekly benefit amount. The amount a claimant is eligible to receive is based on the wages they earned when they were working. Beginning July 1, 2022, new claims will be eligible to receive a weekly benefit amount of between $200 and $320.

I already have a claim. Will my benefits increase?

No, if your claim was opened on June 26, 2022, or before, you will continue to receive your existing weekly benefit amount.

What determines the maximum number of weeks I can receive benefits?

Effective July 1, 2022, the law states that a claimant is eligible for 24 times the person’s weekly benefit amount (or 24 weeks of benefits) unless the “seasonally adjusted unemployment rate” (SAUR) in Arizona averages 5% or above over 3 months (a quarter of the calendar year).

Is the current seasonally adjusted unemployment rate in Arizona less than 5%?

As of June 2022, the unemployment rate in the prior calendar quarter has dropped below 5% and the new maximum benefit award will be 24 times the claimant’s weekly benefit amount (a maximum of 24 weeks of benefits).

Will the number of weeks I receive benefits decrease?

The number of weeks that you are eligible for benefits may decrease because the unemployment rate in the prior calendar quarter was less than 5%. As of July 1, 2022, the last published quarter will be from January through March 2022, which shows an unemployment rate of 3.5%. If you are already receiving a maximum benefit duration of 24 weeks or less prior to the rate change, your claim will not be affected.

Where can the Seasonally Adjusted Unemployment Rate be found?

The seasonally adjusted unemployment rate can be found on Arizona’s Office of Economic Opportunity Unemployment data webpage. The Office of Economic Opportunity publishes this information on the third Thursday of each month after the calendar quarter and will be evaluated quarterly by DES to determine if the maximum number of weeks should be raised or lowered based on the unemployment rate.

I received a revised wage statement about my claim in the mail. What action do I need to take?

• If you agree with the wage statement, no action needs to be taken.
• If you are receiving the maximum benefit amount of 24 weeks or less and you DO NOT agree, you may file a wage protest by completing the Wage Protest Form UB-217C. (See instructions here).
• If you were previously eligible for the maximum benefit amount of 25 or 26 weeks, the revised wage statement was issued following the rate change showing a new maximum benefit amount of 24 weeks. This revised UB-107 wage statement cannot be protested or appealed.

I heard that on July 1, 2022, the unemployment amount increased to $320; so why am I still receiving the same amount that I received before, which is less than $320?

The new law increased the maximum weekly benefit amount to $320 and only applies to new claims that became effective on July 3, 2022, or after. DES does not have the authority to apply the new weekly benefit amount to existing claims.

I have a new claim, but I am not receiving $320 in UI benefits each week. Why is that?

Claimants are not guaranteed to get the full amount of the allotted maximum weekly benefit amount. The amount a claimant is eligible to receive is based on the wages they earned when they were working. Beginning July 1, 2022, new claims will qualify for a weekly benefit amount of between $200 and $320.

How much can I earn weekly before my benefit amount is reduced?

As of July 1, 2022, the amount you can earn each week has increased to $160.50 in gross earnings. if you earn more than $160.50, your benefits will be reduced. As a reminder, if you work or earn any money, you must report the total amount you earned before deductions when you file your weekly claim. You must report any work you do during a week, even if you have not been paid at the time of your weekly claim.

What if I earn more than my weekly benefit amount for a given week?

You do not qualify for benefits for that week.

Can these changes be appealed?

No, this is a state law that will be effective as of July 1, 2022. DES is required to implement the law changes and these changes are not appealable. However, if you believe the calculation under the new law is incorrect, you may follow the instructions on your wage statement to file a wage protest.

I have a child support order where 50% of my weekly benefit amount goes toward child support. If I qualify for more than $320, will my child support withholding also increase?

Yes. The law regarding child support withholding allows for up to 50% deduction. If you have questions about how this is affecting your child support award, and your case is handled through the DES Division of Child Support Services (DCSS), please call 602 252-4045 (Monday -Friday, 7:00 a.m. - 5:30 p.m) to speak with a staff member who can answer questions specific to your case.

Is there a waiting week after starting a new claim?

Yes, the waiting week period still applies.

Should I continue to file weekly certifications?

Yes, in order to remain eligible, you must continue to file your weekly claims. The amount you will earn each week will be paid from your remaining benefits on your existing claim.

Will this change delay my benefits?

With existing systems, the shift from 24 weeks to 26 weeks and vice versa is a manual process. DES will track and anticipate changes in the seasonally adjusted unemployment rate in Arizona (SAUR). If a delay is anticipated, DES will inform claimants as soon as possible.

If the seasonally adjusted unemployment rate increases to 5% or higher again, will I be eligible to receive 26 weeks again?

If the unemployment rate averages higher than 5% for the previous quarter (Jan-Mar, Apr-Jun, Jul-Sep, and Oct-Dec), the maximum weeks in which a claimant can be eligible for benefits will increase to 26 weeks. Please note that the unemployment rate going above just 5% for just one or two months would not trigger a change.