Legal Blog

Summary of Unemployment Compensation Expansion in CARES

On March 25, 2020, Congress came to an agreement on the Coronavirus Aid, Relief and Economic Security Act (“CARES”). Below is a summary of the expanded unemployment compensation assistance the new law offers.

Emergency Increase in Unemployment Compensation Benefits. For any week from now until July 31, 2020, in which an individual is eligible to receive regular compensation under state law, their benefits will now include the amount the employee was otherwise entitled to under state law, plus an additional $600.

 

Pandemic Emergency Unemployment Compensation. Individuals who have exhausted all rights to regular unemployment compensation under state or federal law, have no rights to regular unemployment compensation under state or federal law, are not receiving compensation under Canadian law and are able, available and actively seeking work, may receive unemployment compensation equal to the state weekly benefit amount, plus $600. This assistance will be available for 13 weeks. This will be paid before any extended unemployment compensation benefits are paid.

 

Pandemic Unemployment Assistance. From now through December 31, 2020, a Covered Individual is entitled to pandemic unemployment benefits for weeks:

  • the individual is unemployed, partially unemployed, or unable to work;
  • not entitled to regular or extended benefits or pandemic emergency unemployment compensation, including one who has exhausted their rights to regular or extended unemployment benefits; and
  • Provides certification as specified below.

Individuals may receive the State weekly unemployment benefit (at least 50% of regular compensation) plus an additional $600. Individuals may not receive these benefits for more than 39 weeks, which includes the weeks an individual received regular or extended benefits.

 

Certification. The individual must provide certification that s/he is otherwise able and available for work under state law, but s/he is unemployed (or partially so) because:

  • S/he has been diagnosed with coronavirus, or has symptoms;
  • Member of his/her household has been diagnosed with coronavirus;
  • S/he is providing care for a family member with coronavirus;
  • A child for whom individual has primary care is unable to attend school or another facility, which is closed because of coronavirus (and that care is required for the individual to work);
  • S/he is unable to reach place of work because of a coronavirus-imposed quarantine;
  • S/he is unable to reach place of work because health care provider advised him/her to self-quarantine due to coronavirus;
  • S/he was scheduled to start work, but doesn’t have a job or is unable to get to the job because of coronavirus;
  • S/he has become the breadwinner or support for household because the head of the household died due to coronavirus;
  • S/he had to quit his/her job because of coronavirus;
  • Individual’s place of employment is closed due to coronavirus;
  • Individual meets any other criteria established by Secretary of Labor for unemployment assistance; OR
  • Is self-employed, seeking part-time employment, does not have sufficient work history for UI benefits or would otherwise not qualify for regular, extended or emergency benefits

 

Who is excluded from coverage? An individual who has the ability to telework with pay, or an individual who is receiving paid sick leave or other paid leave benefits (even if qualified under the above).

 

Waiver of One Week Waiting Period. Compensation will be paid to individuals for their first week of regular unemployment without a waiting week.

 

Implementation. The new law will be implemented through agreements with states which the Secretary of Labor believes have an adequate system to administer the aid. States will receive the full amount to administer the aid and any consequential expenses from the federal government. States received 100 percent of the total amount of Federal Pandemic Unemployment compensation paid to individuals.

 

Short Term Compensation Program. States with Short Term Compensation Programs (those where employers voluntarily participate and reduce employee hours in lieu of layoffs, by at least 10% and not more than 60%, and employees receive a pro rata portion of unemployment compensation) will be reimbursed for payments. States may choose to create such a program after this law is enacted, but such states must require employers pay half of short-term compensation paid to employees.

ABOUT KATHARINE BATISTA

kbatista@offitkurman.com | 267.338.1319

Ms. Batista is a Labor & Employment attorney that assists her clients when deciding issues like If my employee has exhausted her FMLA leave and remains out, am I required to hold her position open? Can I terminate my employee for testing positive for marijuana? Will this non-compete agreement be enforced? She helps her clients answer these and similar questions, and vigorously defends their decisions. She represents businesses, such as restaurants, hotels, banks, retailers and health care providers, in the spectrum of employment and labor claims. Specifically, Ms. Batista successfully defends employers against claims of discrimination and harassment, retaliation, wrongful terminations, and wage and hour violations. An employee’s post-separation conduct often requires legal advice and action too. Ms. Batista commonly represents her clients in bringing actions for breach of restrictive covenants and contractual interference, as well as defends them against such claims. Employment and labor law is ever-changing. Employers need to feel secure in how they manage their employees so they can focus on their business. Ms. Batista affords her clients that security.

 

ABOUT OFFIT KURMAN

Offit Kurman is one of the fastest-growing full-service law firms in the United States. With over 200 attorneys in 14 offices that stretch from New York to North Carolina, we represent privately-held companies and families of wealth throughout their business life cycles. Our mission is to provide our clients with “The Better Way” to grow their organizations, protect their businesses’ and families’ wealth, and resolve their most challenging legal conflicts. In addition to our quality of attorneys and breadth of legal services, Offit Kurman is distinguished by our unique operational structure, which encourages collaboration rather than internal competition. The same approach that makes our firm attractive to legal practitioners gives clients unlimited access to experienced counsel in every area of the law. Trust, Knowledge, Confidence—in a partner, that’s perfect.

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