Coverage.—It did not seem feasible at the outset to include certain types of employment under systems of unemployment insurance. The Federal law, therefore, excepts from the employer's tax wages paid for the following services: agricultural labour ; domestic service; ship ping on navigable waters of the United States; employment for the immediate family ; Federal, State, and local government service ; em ployment by certain religious, charitable, and educational organiza tions not organized or operated for profit. Railroad employment, which is covered by the Federal Railroad Unemployment Insurance Act, is excepted from the unemployment compensation provisions of the Social Security Act, as well as from State unemployment com pensation laws.
The amendments of 1939 extended coverage of the Federal unem ployment insurance tax to include wages paid for employment by national banks, building and loan associations, and similar employ ments. Other changes make definitions under this provision more nearly parallel with those for old-age and survivors insurance.
Most State laws cover the same employments as the Federal taxing provisions. But while these Federal provisions extend only to business organizations with eight or more employees, nearly half of the State laws apply to smaller establishments. In eight States the unemploy ment insurance system applies where there is only one employee. By the end of 1939 more than 27,500,00o employees had wage credits under State systems.
Benefits.—Although the laws of the several States differ, benefits are usually equal to half the normal weekly wage up to a maximum of $15 a week, and in most States may continue for a maximum period of about 16 weeks. The amount and duration of benefits depend upon the State law and the worker's previous earnings and employment. All States require a waiting period before benefits be come payable ; the length of this period varies, according to the State law, from two to four weeks.
A refusal of suitable work or loss of employment because of a labour dispute in the worker's establishment constitutes grounds in all States for the extension of the waiting period or for disqualification from benefits until re-employment. In most States the disqualifica tion for loss of employment because of a labour dispute applies if the worker or any member of his grade or class is participating in, financing, or directly interested in the dispute. Ordinarily discharge for misconduct and voluntarily leaving employment without cause constitute grounds for similar penalties. When a worker applies for
unemployment benefits, he registers for work at a State employment office. He is also required to report to this office each week during the waiting period and after his benefit payments begin as evidence that he is able and willing to work.
The act of 1935 placed the amount of Federal funds available to the States for old-age assistance and aid to the blind at one-half of the State's total assistance payments, up to a monthly Federal-State maximum of $30 to each recipient. For aid to dependent children, the act of provided Federal grants equal to one-third of the amount paid by the State. As a basis for computing the Federal share of aid, the act set a maximum of $18 a month for the first child and $12 for each additional child in the same home. A dependent child was defined as one who is under 16 years of age, is without parental support because of the death, disability, or continued absence from home of a parent, and who is living in his own home or with certain near relatives.
The amendments of 1939 increased Federal funds available under each of the three public assistance programs, beginning Jan. 1, 1940. For aid to the needy aged and needy blind the maximum monthly assistance payment to an individual with respect to which the Federal Government will pay one-half was increased from $30 to $40. In the case of aid to dependent children the Federal Government's share was raised from one-third to one-half of the monthly allowance up to $18 for the first child and $12 for any additional children in the same home. The definition of a dependent child was revised to include children up to 18 years of age if regularly attending school.