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What Is Underemployment Insurance?
As of July 2010, a Gallup poll showed 18.3 percent of Americans were underemployed. Twenty-four states offer underemployment insurance in addition to unemployment insurance. When an employee's hours are cut, he can apply for benefits through his state's labor department.
Underemployment insurance will replace part of an employee's income. He can apply for benefits the week his hours are cut back. An individual who receives unemployment benefits and finds partial work can receive underemployment pay, up to his weekly benefit amount. An employee with more than one job may be eligible for benefits if he loses one of his jobs.
To file a claim, an individual needs a Social Security number, address, phone number and valid photo identification. A worker will need his employer's name, address, phone number and a paycheck stub.
A worker will not receive full unemployment benefits when he is underemployed. The amount received at work is subtracted from the worker's full unemployment benefit amount. Each state has a formula to determine the percentage of the worker's salary he will receive in benefits.
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