Washington ESD unemployment insurance system history - how did it start?
I'm doing some research for a class project and trying to understand how the unemployment insurance system we use today in Washington state got started. I know there was some New Deal legislation that created the framework, but I'm not sure which specific law established the unemployment insurance program that Washington ESD now administers. Does anyone know the history behind this? Also curious about when Washington state first started offering UI benefits to workers.
47 comments


GalacticGuru
The Social Security Act of 1935 is what you're looking for! It established both the unemployment insurance system and the old-age pension program (Social Security). Each state had to set up their own unemployment insurance program following federal guidelines, which is why we have Washington ESD today instead of a federal unemployment system.
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Liam Fitzgerald
•Thanks! So Washington ESD was created because of that 1935 federal law? When did Washington actually start paying out unemployment benefits?
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GalacticGuru
•Washington started collecting unemployment taxes in 1937 and began paying benefits in 1938. The state had to build the whole system from scratch after the federal law passed.
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Amara Nnamani
Interesting question! The Social Security Act created the framework, but it's worth noting that the unemployment insurance part (Title III) was separate from the retirement benefits (Title II). States had flexibility in how they structured their programs, which is why each state's system is a bit different today.
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Giovanni Mancini
•That explains why Washington ESD has different rules than other states I've lived in. The benefit amounts and eligibility requirements vary quite a bit.
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Amara Nnamani
•Exactly! Washington's benefit formula and job search requirements are specific to our state's implementation of the federal framework.
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Fatima Al-Suwaidi
I had no idea the unemployment system was that old! I'm currently dealing with a claim that's been stuck in adjudication for weeks and it's frustrating how slow the process is. Makes me wonder if they've updated the system much since the 1930s lol
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Fatima Al-Suwaidi
•Never heard of that before, but I'm desperate at this point. The regular Washington ESD phone line just hangs up on me after an hour of waiting.
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Dylan Cooper
The system has definitely been modernized over the decades, but the basic structure from 1935 is still there. The biggest changes came with computerization in the 1980s and then the move to online filing in the 2000s. Washington ESD's current system is actually pretty advanced compared to some other states.
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Sofia Morales
•Advanced maybe, but still crashes during high-volume periods! Remember when COVID hit and everyone was trying to file claims?
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Dylan Cooper
•Fair point! No system was really designed to handle that kind of sudden volume increase. Most states struggled with the same issues.
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StarSailor
For your project, you might also want to mention that the Social Security Act was part of FDR's 'Second New Deal' in 1935. It was a response to the Great Depression and created a social safety net that didn't exist before.
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Liam Fitzgerald
•That's really helpful context! So unemployment insurance was basically created because of the massive unemployment during the Depression?
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StarSailor
•Exactly! Unemployment hit 25% at the worst point, so there was huge public pressure to create some kind of system to help people between jobs.
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Dmitry Ivanov
just curious - do you know if other countries had unemployment insurance before the US? seems like we were kinda late to the game
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GalacticGuru
•Good question! Britain had unemployment insurance starting in 1911, and Germany had it even earlier. The US was definitely behind other industrialized countries in creating social insurance programs.
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Ava Garcia
•Makes sense why it took a massive economic crisis for the US to finally act on it then.
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Miguel Silva
I'm a retired Washington ESD employee (worked there 30 years) and can confirm the Social Security Act of 1935 created the framework we still use today. The federal-state partnership model means Washington collects taxes from employers and pays benefits to eligible workers, but we follow federal guidelines for things like work search requirements and benefit duration.
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Zainab Ismail
•Wow, 30 years! You must have seen a lot of changes. What was the biggest transformation you witnessed?
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Miguel Silva
•Definitely the move from paper claims to online filing. We used to process everything by mail and phone. The pandemic really accelerated digital adoption too.
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Fatima Al-Suwaidi
•Since you worked there, any advice for getting through the adjudication process faster? I'm still waiting and it's been over a month.
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Connor O'Neill
The Wagner-Peyser Act also passed in 1933 and created public employment services, which is why we have WorkSource offices connected to the unemployment system. It all fits together as part of the New Deal employment programs.
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Liam Fitzgerald
•Oh interesting! So that's why you have to register with WorkSource as part of getting unemployment benefits in Washington?
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Connor O'Neill
•Exactly! The job search requirement connects the unemployment insurance system with the employment services. You're supposed to be actively looking for work while receiving benefits.
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QuantumQuester
This is fascinating stuff! I'm currently on standby status with Washington ESD (seasonal layoff) and never really thought about the history behind the program. It's amazing that a law from 1935 still affects my weekly claims today.
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Yara Nassar
•Standby status is actually a good example of how states customized their programs. Not every state has that option for seasonal workers.
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QuantumQuester
•Really? I assumed it was standard everywhere. Good to know Washington ESD has some flexibility in how they handle different situations.
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Keisha Williams
One thing that's changed a lot since 1935 is how benefits are funded. Originally it was just employer taxes, but now there are federal extensions during recessions and additional programs during emergencies like COVID.
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Paolo Ricci
•Speaking of funding, does anyone know if the recent federal extensions affected how Washington ESD processes regular state claims?
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Keisha Williams
•The federal programs were separate systems, but they did create processing backlogs that affected everyone. That's part of why adjudication has been taking longer.
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Amina Toure
i keep seeing people mention adjudication delays - is this a new problem or has it always been an issue? seems like everyone's complaining about it lately
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Amina Toure
•never heard of claimyr before, does it actually work?
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Oliver Zimmermann
•Yeah, it worked for me. They basically call Washington ESD for you and connect you when they get through. Saved me a lot of frustration trying to get my claim resolved.
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CosmicCommander
For your research project, you should also mention that the Social Security Act created the Federal Unemployment Tax Act (FUTA), which is how the federal government provides oversight and funding for state unemployment programs. Washington ESD has to comply with federal requirements to receive federal funding.
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Liam Fitzgerald
•Thanks! That's exactly the kind of detail I need. So there's both state and federal involvement in unemployment insurance?
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CosmicCommander
•Right - it's a federal-state partnership. States run their own programs but have to meet federal standards. That's why you see similarities between state systems but also differences in benefit amounts and eligibility rules.
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Natasha Volkova
The historical context is important too - before 1935, there was basically no social safety net for unemployed workers. People relied on charity, family, or local relief programs. The Social Security Act created the first comprehensive federal approach to economic security.
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Javier Torres
•Hard to imagine not having unemployment insurance as an option! Even with all the current problems people complain about, at least the system exists.
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Natasha Volkova
•Exactly! The system has flaws but it's prevented a lot of economic hardship over the past 90 years. Washington ESD processes hundreds of thousands of claims every year.
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Emma Davis
I'm dealing with an overpayment issue right now and the appeals process is taking forever. Makes me wonder if they've improved the appeals system much since the 1930s or if it's still using the same basic procedures.
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Emma Davis
•I'll look into that, thanks. Been trying to call for weeks with no luck getting through.
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Malik Johnson
Fun fact: Washington was actually one of the first states to implement its unemployment insurance program after the Social Security Act passed. We started collecting taxes in 1937 and paying benefits in 1938, which was pretty quick compared to some other states.
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Isabella Ferreira
•That's cool! Does that mean Washington ESD has been around longer than unemployment agencies in other states?
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Malik Johnson
•Washington ESD as we know it today was created later, but the state unemployment program started very early. The agency has been reorganized and renamed several times over the decades.
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Ravi Sharma
Your project should definitely mention Title IX of the Social Security Act too - that's the specific section that created the unemployment insurance program. Title II was for retirement benefits, Title IX was for unemployment insurance.
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Liam Fitzgerald
•Perfect! I was looking for those specific section numbers. This has been incredibly helpful - I had no idea there were so many people knowledgeable about unemployment history on here.
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NebulaNomad
•This forum is great for learning about Washington ESD! I've gotten more useful information here than from most official sources.
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