04.06.2020 | COVID-19

Enhanced Unemployment Insurance Benefits

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COVID-19 Client Alerts:

Enhanced Unemployment Insurance Benefits

 
Although the Employment Development Department has yet to provide comprehensive guidance on the topic, the federal Department of Labor has begun to do so. Unfortunately, EDD has been slow to roll out this program, so it is unclear when the benefits and changes specified in the Act will translate into actual monetary benefits for applicants.

One of the most significant changes of the CARES Act is the expansion of the scope of unemployment insurance. The Pandemic Emergency Unemployment Compensation provision provides an additional 13 weeks of unemployment benefits, which are available after the benefits provided by the state are exhausted. And, the Pandemic Unemployment Assistant provision allows people who usually do not qualify for unemployment (i.e., self-employed, independent contractor) to obtain unemployment insurance.

Last night, the DOL issued guidance indicating that this provision was being expanded to include workers in the gig economy.
The CARES Act also enhances the weekly benefits provided to those eligible. Unemployment benefits in California are capped at $450 per week, but the amount payable depends on the compensation previously earned by the applicant. The CARES Act allows applicants to receive an additional $600 per week, until July 31, 2020.

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