South Raleigh News

Governor Roy Cooper has issued an emergency Executive Order to increase unemployment payments for North Carolinians affected by Hurricane Helene. The order authorizes the North Carolina Department of Commerce, Division of Employment Security, to raise weekly unemployment benefits from a maximum of $350 to $600.

Governor Cooper stated, “As I’ve traveled for days around western North Carolina I’ve heard concern from many small business owners about their employees who are unemployed because their businesses are temporarily closed. This Executive Order will increase unemployment benefits and help ease the financial burden for impacted North Carolinians as they work to recover from the storm.”

The increased benefits aim to support low-income and part-time workers who were previously receiving less than the $350 maximum. The order adds $250 per week up to the new cap of $600 for eligible workers. This adjustment is linked to the State of Emergency declared for Hurricane Helene and will remain effective until the emergency ends or it is rescinded.

While state unemployment benefits are capped at 12 weeks, those affected by the disaster can qualify for up to 26 weeks of federal benefits under the Disaster Unemployment Assistance program, available until March 29, 2025. Employers impacted by Helene will not face higher unemployment taxes due to this benefit increase.

Federal law mandates that elevated state payments apply statewide; however, most beneficiaries will be from counties hit hardest by Helene. Data indicates that 79% of new claims since October 13th originate from these areas.

North Carolina's current maximum weekly unemployment benefit ranks among the lowest in eight states. Despite rising wages and a growing Unemployment Insurance Trust Fund balance—now over $4.8 billion—the cap set in 2013 remains unchanged.

The Division of Employment Security projects that each increment in beneficiaries could cost approximately $2.5 million per week from the Trust Fund if 10,000 individuals receive elevated benefits. Should 50,000 people claim full additional state benefits over 12 weeks, costs could reach $150 million with another potential $175 million covered federally for an additional 14 weeks.

Many workers may return to employment before claiming full entitled benefits, potentially reducing fiscal impact estimates.

Adjustments may take two to three weeks before reflecting in weekly checks but will be retroactive from September 29, 2024. The North Carolina Council of State has unanimously supported this executive order underlining its compliance with the state's Emergency Management Act.