How Unemployment Benefits Are Changing With Senate Coronavirus Aid Bill
If you’re out of work due to the coronavirus, the Senate relief bill passed last night (and is expected to pass soon in the House of Representatives) will offer extended unemployment benefits.
The bill proposes $ 600 a week for up to 13 weeks for people out of work due to the coronavirus.
People eligible for the $ 600 benefits include self-employed and gig economy workers, part-time workers, and people who are unable to go to work due to the coronavirus pandemic. It also includes people who don’t have enough seniority to usually qualify for benefits, according to CNBC . Self-employed workers may be eligible for 50% of their state’s average benefits in excess of $ 600 per week from the federal government.
Most states offer about 26 weeks of benefits, but typically only reimburse 40-45% of a worker’s weekly income. Additional payments from the federal government are intended to fill this gap.
Here are two examples of how this would work for you.
You are a waiter, and the restaurant you worked in for years is now closed. You are hoping to pick up shifts as soon as the restaurant reopens. You live in Florida , where you can receive Unemployment Insurance benefits for up to 12 weeks and can receive a maximum of $ 275 per week during that time.
Let’s say you are eligible for all $ 275 per week. For the first 12 weeks, you receive $ 875 Unemployment Insurance ($ 600 from the federal government and $ 275 from your state). On week 13, your Florida benefits will end, but you will receive another $ 600 payment.
What if you work in another state that offers a longer period of unemployment benefits? Take Arizona, for example: you are a waiter there and your restaurant is closed. You are eligible for Unemployment Insurance benefits for 26 weeks with a maximum weekly payment of $ 240.
Within 13 weeks, you will receive $ 840 ($ 600 from the federal government and $ 240 from your state). Then, for the next 13 weeks, you will receive just $ 240 per week from Arizona.
Of course, if you return to work before you reach the maximum number of weeks for unemployment benefits, you will no longer receive payments from your state or federal government.
Critics of the bailout bill warned that the expansion of benefits would encourage employers to lay off workers rather than keep them on payroll due to uncertainty. More than three million people nationwide filed unemployment claims last week. The $ 600 per week payout is expected to last until the end of July.
Earlier in March, the Labor Department gave states the opportunity to expand their unemployment programs so that people can apply for benefits if the coronavirus has prevented them from working. This extension applies to people who are temporarily unable to work, as well as those who quit at this time.
To apply for unemployment benefits, search for your state in the Benefits.gov directory . But be prepared for the process to take some time: government unemployment services are reporting a flood of new candidates, leading to long waiting times for calls and crashes on websites.