Federal unemployment will be reduced beginning March 31

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Unemployed Hoosiers will see a 10.7 percent decrease in federally extended benefits beginning March 31.

Friday, the U.S. Department of Labor issued further guidance on how the sequester will affect benefits.

Early Wednesday afternoon, the state announced more than 30,000 unemployed Hoosiers wouldn’t receive an extension of the federal unemployment benefits after March 9. They reversed that decision later that same night.

Beginning March 31, 2013, states are mandated to begin reducing federally extended weekly benefits by 10.7 percent.  If states cannot implement changes by that date, the amount of the reduction will continue to increase as time passes. States will be required to notify claimants, including post mail, at least 15 days in advance of the upcoming reductions.

The government will give states $40,000 to notify claimants and implement sequestration cuts.

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