Federal law makes disaster unemployment assistance (DUA) available to state workforce agencies for distribution to certain employees and self-employed individuals who cannot work due to a major disaster. DUA is now available to qualified individuals in several states who are unemployed due to Hurricane Helene and will be available to qualified individuals in Florida due to Hurricane Milton.

DUA benefits are payable to individuals who are unemployed due to a major disaster for weeks of unemployment within the Disaster Assistance Period (DAP). The DAP begins with the first day of the week following the date the major disaster began and continues for up to 26 weeks after the date the major disaster was declared by the President.

The maximum weekly DUA benefit is determined under the state unemployment insurance (SUI) law of the state where the disaster occurred. Under federal law, however, the minimum weekly benefit amount is 50% of the average unemployment insurance benefit in that state, so employees must receive at least this amount.

DUA is generally available to any unemployed worker or self-employed individual who lived, worked or was scheduled to work in the disaster area at the time of the disaster and because of the disaster:

• No longer has a job or a place to work
• Cannot reach the place of work
• Cannot work due to damage to the place of work

Or

• Cannot work because of an injury caused by the disaster

An individual who becomes the head of household and is seeking work because the former head of household died as a result of the disaster may also qualify for DUA benefits. (US Department of Labor, Disaster Unemployment Assistance.)

State DUA information for Hurricanes Helene and Milton

Ernst & Young LLP insights

DUA is paid with federal funds, is not charged to state unemployment insurance trust funds and should have no impact on employers' SUI tax rates because it is not charged back to employers' SUI accounts.

Employers that have employees who were temporarily unemployed because of business interruptions caused by Hurricane Helene should carefully review unemployment claims charged to their accounts, confirming that DUA benefits were not erroneously included.