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Work group reviews indexing Virginia's maximum weekly unemployment benefit to average wage

October 20, 2025 | 2025 Legislature VA, Virginia


This article was created by AI summarizing key points discussed. AI makes mistakes, so for full details and context, please refer to the video of the full meeting. Please report any errors so we can fix them. Report an error »

Work group reviews indexing Virginia's maximum weekly unemployment benefit to average wage
Delegate Bennett Parker reported to a Senate committee that the adjustments-to-weekly-benefits work group held its first meeting and began studying whether Virginia should index its maximum weekly unemployment benefit to the state's average weekly wage.

"National experts agree that the maximum weekly unemployment benefit should be around 50% of the average weekly wage at a minimum," Parker said during the committee update. The work group was created by an enactment clause in recent legislation and is charged with recommending a mechanism for annual adjustments to the individual weekly benefit amount tied to an economic metric.

Committee materials presented comparisons showing Virginia's current maximum weekly benefit is roughly 26% of the state's average weekly wage and is scheduled to increase to about 30% next year under existing law. By contrast, the work group's presenters noted that approximately 35 states index their maximum weekly benefit to a statewide economic metric. A 1981 third‑party review of Virginia's UI program recommended indexing the maximum weekly benefit to 55% of the average weekly wage and updating it annually; work-group members said they would examine gradual approaches and model scenarios.

The group heard from Ashley Irvin of the VEC and Flannery O'Rourke from the National Employment Law Project and is working with VEC staff to model potential impacts on trust‑fund solvency and employer tax rates. Parker said the group will continue its work to determine how any increase could be phased in while monitoring solvency implications.

Members asked whether the group would meet again this year; Parker said future meetings depend on schedules and the availability of metrics to inform modeling. The work group has met at least once this year to fulfill a statutory requirement to hold two meetings and may convene additional meetings if further analysis is needed. No formal legislative action was taken at this committee meeting; the work group will report back to the full commission as it progresses.

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Scribe from Workplace AI
Scribe from Workplace AI