Extended Unemployment Compensation Act of 1985

Extended Unemployment Compensation Act of 1985 - Amends the Federal-State Extended Unemployment Compensation Act of 1970 (the Act), and repeals the Federal Supplemental Compensation Act of 1982, to provide for a consolidated program of extended unemployment compensation to replace the current extended compensation and Federal supplemental compensation programs.

Revises the Act to limit the amount of extended compensation payable to an individual to the amount established in an individual's extended compensation account. Increases the limit on the amount established in an individual's extended compensation account. Sets forth the formula for determining the new limit.

Limits an individual's eligibility period for extended compensation to the number of weeks equal to the applicable limit for an individual's compensation account. Requires the amount and duration of extended compensation payable under the interstate benefit payment plan to be the same as if the individual were filing the claim in the State which establishes the individual's extended compensation account.

Requires that each unemployment benefit duration period shall be a three-month period beginning on the first Sunday of January of each year and the first Sunday of every third month thereafter. Sets forth formulas based upon each State's insured unemployment rate, for determining whether a benefit duration period shall be a seven-percent, six-percent, five-percent, or four-percent period. Requires that a benefit duration period shall be a "low-unemployment period" if the State's adjusted insured unemployment rate for the first week of such benefit duration period and the immediately preceding 12 weeks was less than four percent. Requires a benefit duration period to be a "national high-unemployment period" if the national seasonally adjusted unemployment rate for the first week of such benefit duration period and the immediately preceding 12 weeks equalled or exceeded ten percent.

Sets forth an alternate method of determining a benefit duration period based upon the total rate of unemployment.

Requires that each State be paid an amount equal to the applicable percentage of the sum of the sharable extended compensation and the sharable regular compensation paid to individuals under State law. Sets forth the applicable percentage for seven-percent, six-percent, five-percent, four-percent, and national high-unemployment periods. Defines sharable regular compensation.

Amends title IX (Employment Security) of the Social Security Act to authorize appropriations into the extended unemployment compensation account.

Revises the Act to permit the State to modify the requirement that an individual must actively engage in seeking work during each week of unemployment in order to qualify for extended compensation. Permits States to take into account any State determination that labor market conditions in the labor market area in which such individual last worked and in the labor market area in which such individual resides are so depressed that actively seeking work likely will not result in employment.

Prohibits payment of extended unemployment compensation to an individual unless the individual participates in an intensive one-week job search program administered by the Employment Service if requested to so participate.

Repeals the Federal Supplemental Compensation Act of 1982.

Permits States to choose to delay the applicability of the amendments and repeals made by this Act. Sets forth transition provisions for such States.

Directs the Secretary of Labor to study and report to the Congress by December 31, 1985, on alternatives to the insured unemployment rate which would be available with respect to all States and which might provide a more accurate measurement of the employment and labor market situation in each State.

Directs the Bureau of Labor Statistics to increase by threefold the sample sizes used in determining the total unemployment rate and to give special consideration to increasing the statistical reliability of each State's calculation of its total unemployment rate. Authorizes appropriations for such increased sampling out of the employment security administration account in the Unemployment Trust Fund.