CARES Act – Unemployment Benefits
Creation of Pandemic Unemployment Assistance (sec. 2102)
- Provides unemployment benefits to individuals that would otherwise not qualify for benefits. Anybody that is unable to work as a result of COVID-19 illness, quarantine, or movement restriction.
- Will cover the following:
- Self-employed workers
- Part-time workers
- Those with limited work histories
- Will not cover employees with the ability to telework, or those who are receiving paid sick leave or other paid benefits.
- Will still be state administered but fully federally funded.
- To qualify, an employee should file with the state entity, and state the reason for filing at that time.
- The program is effective through December 31, 2020
Non-Profits, Indian Tribes and Governmental Entities: reduces the amount that the entities are required to reimburse states for benefits paid to workers by 50% through December 31, 2020 (Sec. 2103).
Emergency Increase in Unemployment Compensation (Sec. 2104)
- Provides an additional $600 a week in Federal Pandemic Unemployment Compensation.
- Effective until July 31, 2020.
- Benefit is taxable but is disregarded in determining Medicaid or CHIP eligibility.
- Covers everyone listed under sec. 2102 referenced in Item 1 above.
- Will receive the benefit through each state program, as long as state agrees to administer it.
Full Federal Funding of First Week of Unemployment Benefits (sec. 2105)
- Relates to states that have a week waiting period before benefits begin
- Missouri, California and Illinois are in the process of waiving the waiting period.
- State can come to an agreement with the federal government to have the first week of unemployment benefits reimbursed, so the state does not have a waiting period.
- Effective until December 31, 2020.
Pandemic Emergency Unemployment Compensation (sec 2107)
- Allows for 13 weeks of federally funded unemployment compensation for individuals who have exhausted their state unemployment benefits through December 31, 2020.
- Covers everyone listed under sec. 2102 referenced in Item 1 above.
Short-Time Compensation (sec. 2108 – 2111)
- Short-Time Compensation (STC), also known as work sharing or shared-work program, is an alternative to layoffs for employers experiencing a reduction in available work. If the work at a company slows down, the company can keep the employee on part time, and then still pay a portion of unemployment benefits for the lost wages.
- 100% reimbursements to states through December 31, 2020.
- Temporary financing of short-term compensation agreements: 50% reimbursement to the states.
- Grants are available to improve or create an STC plan.
- The DOL will provide free support to states interested in starting a STC plan.
Railroad Insurance Act (sec. 2112 -2114, matches most of the non-railroad provisions)
- Eliminates seven day waiting period for benefits.
- Allows individuals to receive $1,200 additional payments every two weeks through July 31, 2020.
- Extends benefits by 13 weeks through December 31, 2020.
Funds DOL Office of the Inspector General for Oversight of Unemployment Provisions with $25,000,000.
To review other provisions from the CARES Act, click here.
