A record 6,648,000 Americans filed for unemployment benefits for the week ending March 28, 2020, which marked an increase of 3,341,000 filings from the previous week’s level.[1] The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) provides approximately $260 billion in enhanced and expanded unemployment insurance. The CARES Act also amends paid leave and paid sick leave provisions.
Expanded Unemployment Benefits [Title II, Subtitle A of the CARES Act]
The CARES Act includes expanded rights to unemployment compensation for individuals who are unemployed due to various reasons related to COVID-19, entitled “Relief for Workers Affected by Coronavirus Act.” This subtitle creates three new unemployment insurance programs: (1) Pandemic Unemployment Assistance, (2) Pandemic Unemployment Compensation, and (3) Pandemic Emergency Unemployment Compensation.
1. Pandemic Unemployment Assistance [Section 2102 of the CARES Act]
Pandemic Unemployment Assistance (“PUA”) provides emergency unemployment assistance to workers who are not eligible for regular state or federal unemployment benefits or PEUC (see below) or who have exhausted all rights to regular state or federal unemployment benefits or PEUC (see below). This program provides up to 39 weeks of assistance to workers who are immediately eligible to receive PUA. The amount of assistance provided is the weekly benefit amount dictated by the state where the individual was employed (in New York, up to $504/week) plus $600/week (federal) (amount dictated by the Federal Pandemic Unemployment Compensation).
Eligible individuals include:
Self-employed workers
Independent contractors
Freelancers
Workers seeking part-time work
Workers who do not have a long-enough work history to qualify for state unemployment insurance
Workers are not eligible for PUA if they can telework with pay or are receiving paid sick days or paid leave.
In order to receive PUA, applicants must provide a self-certification that they are:
-able to work and available for work, except the individual is unemployed, partially unemployed, or unable or unavailable to work because—
the individual has been diagnosed with COVID–19 or is experiencing symptoms of COVID–19 and seeking a medical diagnosis;
a member of the individual's household has been diagnosed with COVID–19;
the individual is providing care for a family member or a member of the individual's household who has been diagnosed with COVID–19;
a child or other person in the household for which the individual has primary caregiving responsibility is unable to attend school or another facility that is closed as a direct result of the COVID–19 public health emergency and such school or facility care is required for the individual to work;
the individual is unable to reach the place of employment because of a quarantine imposed as a direct result of the COVID–19 public health emergency;
the individual is unable to reach the place of employment because the individual has been advised by a health care provider to self-quarantine due to concerns related to COVID–19;
the individual was scheduled to commence employment and does not have a job or is unable to reach the job as a direct result of the COVID–19 public health emergency;
the individual has become the breadwinner or major support for a household because the head of the household has died as a direct result of COVID–19;
the individual has to quit his or her job as a direct result of COVID–19;
the individual's place of employment is closed as a direct result of the COVID–19 public health emergency; or
the individual meets any additional criteria established by the Secretary for unemployment assistance under this section; or
-Self-employed, seeking part-time employment, does not have sufficient work history, or otherwise would not qualify for regular state or federal unemployment benefits or PEUC (see below) and meets the requirements above.
The PUA program will expire on December 31, 2020, unless otherwise extended. PUA benefits can be paid retroactively for periods of unemployment beginning on or after January 27, 2020. In New York, a PUA application can be submitted online at labor.ny.gov. However, an applicant cannot apply for PUA until he/she has been determined ineligible for regular state unemployment insurance benefits.
2. Federal Pandemic Unemployment Compensation [Section 2104 of the CARES Act]
For individuals that qualify for regular unemployment compensation, they are entitled to receive Federal Pandemic Unemployment Compensation (“FPUC”), which provides an additional $600 to amounts that would otherwise be paid by the state. Individuals in New York will be eligible to receive up to $504/week in state benefits plus $600 in federal benefits.
FPUC is available once the United States Department of Labor and the state enter into an agreement concerning funding and payment and shall end on or before July 31, 2020.
3. Pandemic Emergency Unemployment Compensation [Section 2107 of the CARES Act]
Pandemic Emergency Unemployment Compensation (“PEUC”) provides up to an additional 13 weeks of state unemployment insurance benefits after he/she has exhausted all of his/her regular state unemployment insurance benefits. In order to receive PEUC, the applicant must have exhausted all rights to state and federal unemployment compensation with respect to the benefit year beginning on or after July 1, 2019. In addition, the applicant must be actively engaged in searching for work. However, the CARES Act explicitly provides that “a State shall provide flexibility in meeting such [work search] requirements in case of individuals unable to search for work because of COVID-19, including because of illness, quarantine, or movement restriction.” The amount to be paid is the amount of regular compensation (up to $504/week in New York) plus $600/week (federal).
All three programs are fully federally funded. States will also receive additional administrative funds to operate these programs. However, there is a “non-reduction rule” in the CARES Act, which means that as long as the states are participating in these programs,