Wolters Kluwer Offers Guidance on Unemployment Benefits as $600 CARES Act Benefit Approaches July 31 Expiration

The expiration of the additional $600 per week benefit will impact millions of Americans if a new COVID-19 relief package is not approved before the week's end

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Wolters Kluwer Legal & Regulatory U.S.

Jul 29, 2020, 15:32 ET

NEW YORK, July 29, 2020 /PRNewswire/ -- Millions of out-of-work Americans currently face uncertainty as the July 31 expiration of the $600 per week benefit included in the Coronavirus Aid, Relief and Economic Security (CARES) Act looms closer. While some individuals can receive assistance through existing states' unemployment insurance, self-employed or gig economy workers risk losing all benefits if Congress does not extend the $600 benefit, according to experts at Wolters Kluwer Legal & Regulatory U.S.

This expiration precedes 13 weeks of additional unemployment insurance under the Pandemic Emergency Unemployment Compensation (PEUC) program that is scheduled to end on or before December 31. On Monday, July 27, Senate Republicans released their version of the next COVID-19 stimulus bill, which would cut the $600 per week benefit to $200 per week as states transition to implement a system designed to provide about 70 percent of wage replacement for laid off workers.

"As Congress works toward negotiating a new stimulus package, many are watching closely for how it will impact those who are out of work as a result of the pandemic," said Barbara O'Dell, J.D., Legal Analyst at Wolters Kluwer Legal & Regulatory U.S. "If the $600 per week benefit is allowed to run out by the end of the week, it will have impacts for millions of unemployed Americans to varying degrees of severity."

Those at Risk

For individuals collecting state unemployment insurance benefits, the benefit amount will decrease. However, they will be entitled to the normal benefits as calculated under state law if they continue to be eligible under state requirements.

Individuals who are covered under the Pandemic Unemployment Assistance (PUA), and are therefore not eligible for state unemployment benefits or extended benefits, face a greater impact if the $600 benefit is not extended, potentially risking the loss of all benefits. This group of individuals include self-employed individuals, who may be part of the gig economy or would not qualify for regular unemployment or extended benefits because they are seeking part-time employment or do not have a sufficient work history to qualify for benefits.

Extended Benefits

Most states provide up to 26 weeks of benefits to unemployed workers. However, the CARES Act authorized the PEUC program to provide an additional 13 weeks of unemployment insurance benefits for states that enroll in the program, which means eligible individuals may receive unemployment benefits up to a maximum of 39 weeks. This program is scheduled to end on or before December 31, 2020.

There is an additional 13 weeks of state benefits that eligible individuals may receive. These extended benefits are payable only after an individual has exhausted regular benefits and the 13 weeks of PEUC benefits.

Eligibility Requirements for Benefits during COVID-19

All states require an individual to be available to work and actively looking for work in order to be eligible for regular unemployment insurance benefits. "Available to work" is often interpreted as being ready, willing and able to work. An individual may be considered unavailable to work under the following circumstances:

If the person has substantial restrictions upon the kind or conditions of otherwise suitable work that the individual can or will accept;
If the person refuses a referral to suitable work made by the employment; or
If the person refuses an offer of suitable work made by an employer.

To be eligible for the extended benefits under the PEUC, there is also a requirement that individuals seeking the extended benefits must be able to work, available to work and actively seeking work. The CARES Act specifically required states to provide flexibility in meeting the actively seeking work portion of the requirements in the case of individuals who are unable to search for work due to COVID-19 (including due to illness, quarantine or movement restrictions).

Each state has its own unemployment rules. The following list includes information about COVID-19 that has been added to each state's unemployment agency's website.

Alabama	https://labor.alabama.gov/
Alaska	https://labor.alaska.gov/COVID-19-SOA.htm
Arizona	https://des.az.gov/services/coronavirus
Arkansas	https://www.dws.arkansas.gov/
California	https://www.edd.ca.gov/about_edd/coronavirus-2019.htm
Colorado	https://www.colorado.gov/pacific/cdle/unemployment
Connecticut	https://www.ctdol.state.ct.us/DOLCOVIDFAQ.PDF
Delaware	https://dol.delaware.gov/
District of Columbia	https://coronavirus.dc.gov/
Florida	https://www.floridajobs.org/
Georgia	https://dol.georgia.gov/gdol-covid-19-information
Hawaii	https://labor.hawaii.gov/covid-19-labor-faqs/
Idaho	https://www.labor.idaho.gov/dnn/COVID-19
Illinois	https://www2.illinois.gov/ides/Pages/COVID-19-and-Unemployment-Benefits.aspx
Indiana	https://www.in.gov/dwd/19.htm
Iowa	https://www.iowaworkforcedevelopment.gov/COVID-19
Kansas	https://getkansasbenefits.gov/Home.aspx
Kentucky	https://kcc.ky.gov/Pages/default.aspx
Louisiana	https://www.laworks.net/PublicRelations/COVID_19_Information.asp
Maine	https://www.maine.gov/labor/covid19/
Maryland	https://www.dllr.state.md.us/employment/uicovidfaqs.shtml
Massachusetts	https://www.mass.gov/info-details/employer-unemployment-faq-covid-19
Michigan	https://www.michigan.gov/leo/
Minnesota	https://www.uimn.org/employers/employer-account/news-updates/covid-19.jsp
Mississippi	https://mdes.ms.gov/unemployment-claims/covid19/#EmployerFAQs
Missouri	https://labor.mo.gov/coronavirus
Montana	https://dli.mt.gov/employer-covid-19/employer-resource-covid-19
Nebraska	https://dol.nebraska.gov/webdocs/Resources/Items/FAQs%20for%20Employers%20-%20Under%20UI%20Exec%20Order.pdf
Nevada	https://detr.nv.gov/Page/COVID-19_(Coronavirus)_Information_for_Claimants_and_Employers
New Hampshire	https://www.nhes.nh.gov/index.htm
New Jersey	https://myunemployment.nj.gov/labor/myunemployment/covidFAQ.shtml
New Mexico	https://www.dws.state.nm.us/COVID-19-Info
New York	https://labor.ny.gov/unemploymentassistance.shtm
North Carolina	https://des.nc.gov/need-help/covid-19-nc-unemployment-insurance-information
North Dakota	https://www.jobsnd.com/news/unemployment-insurance-and-covid-19-frequently-asked-questions
Ohio	https://unemploymenthelp.ohio.gov/employee/
Oklahoma	https://www.ok.gov/oesc/Claimants/
Oregon	https://govstatus.egov.com/ORUnemployment_COVID19
Pennsylvania	https://www.uc.pa.gov/COVID-19/Pages/Important-Updates.aspx
Puerto Rico	https://www.trabajo.pr.gov/images/covid19.png
Rhode Island	https://www.dlt.ri.gov/ui/
South Carolina	https://dew.sc.gov/covid-hub/employerhub
South Dakota	https://dlr.sd.gov/covid_19_resources.aspx
Tennessee	https://www.tn.gov/workforce/covid-19/faq/employers.html
Texas	https://www.twc.texas.gov/news/covid-19-resources-employers
Utah	https://jobs.utah.gov/covid19/covidui.html
Vermont	https://labor.vermont.gov/covid19
Virginia	https://www.vec.virginia.gov/covid19
Washington	https://esd.wa.gov/newsroom/covid-19-employer-information
West Virginia	https://workforcewv.org/covid19
Wisconsin	https://dwd.wisconsin.gov/covid19/public/ui.htm
Wyoming	https://wyomingworkforce.org/data/epidemiology/coronavirus/

For More Information
For members of the media interested in additional detail on unemployment insurance and benefits, or to request an interview with an expert from Wolters Kluwer Legal & Regulatory U.S., please contact us at [email protected]

About Wolters Kluwer Legal & Regulatory U.S.
Wolters Kluwer (WKL) is a global leader in professional information, software solutions, and services for the healthcare; tax and accounting; governance, risk and compliance; and legal and regulatory sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with advanced technology and services.

Wolters Kluwer reported 2019 annual revenues of €4.6 billion. The group serves customers in over 180 countries, maintains operations in over 40 countries, and employs approximately 19,000 people worldwide. The company is headquartered in Alphen aan den Rijn, the Netherlands.

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