The Challenge

Marylanders who need to work part-time do not qualify for UI benefits.

Maryland requires all workers to seek full-time employment in order to receive UI benefits. This restriction is outdated, and was established in a time when many families relied on one full-time breadwinner.

Almost one-fourth of workers are part-time, making up an essential segment of the economy.

As of 2002, there were 373,000 Marylanders working part-time for non-economic reasons such as health limitations, family obligations, or schooling. These workers make up 13% of the state’s labor force. Local businesses rely on these workers to meet their workforce needs.

Part-time workers and their employers already pay UI taxes.

UI is paid for directly by employers and indirectly by workers, as a tax on a worker’s wages. The UI tax applies to almost all workers—whether full or part time. Part-time Maryland workers could spend their whole career contributing to the system, and still be denied benefits.

The Solution – Expand Coverage to Part-Time Workers

Part-time workers are already eligible for UI in many other states.

As of 2006, 22 states plus the District of Columbia and Puerto Rico were already providing benefits to part-time workers. Maryland is behind the curve, and needs to update this element of its UI system.

Expanding UI benefits extends a critical safety net to Maryland families.

Providing benefits for part-time workers will increase the economic security of Maryland families. This change will help ensure that hardworking families can meet their basic needs, such as housing, transportation, food, and healthcare, when dealing with the sudden hardship of job loss.

How Do We Pay for It?

UI changes are general fund neutral, thanks to the dedicated UI trust fund.

Maryland has a dedicated UI trust fund into which all UI payroll taxes are credited and from which all benefits are paid. The trust fund is healthy, with a balance of around $1 billion.

Providing benefits to part-time workers can be done at a relatively low cost.

Expanding UI to part-time workers would provide a significant benefit to the state’s economy at a minimal cost. The U.S. Department of Labor estimated that covering part-time workers would benefit 1,000 Marylanders per week at a cost of $4.4 million per year—an increase in total UI payments of just 2%.

For further information, contact:

Melissa Chalmers Broome

Job Opportunities Task Force

(410) 234-8046

melissa@jotf.org