COVID-19 CARES Act Unemployment Frequently Asked Questions
Cassie Brown • April 13, 2020
Coronavirus Aid, Relief and Economic Security Act (CARES Act) Unemployment FAQ’s
The CARES Act is almost $2 trillion wrapped up in a relief package that includes: direct financial assistance to Americans; aid to small businesses and employees; efforts to stabilize the economy and keep people employed; and additional support for health care professionals, patients, and hospitals.
The three areas that cover UI benefits are:
- Federal Pandemic Unemployment Compensation (FPUC)
- Provides a federal benefit of $600 a week if you are eligible for your state UI benefit. UI applicants do not have to apply separately, this will be processed as part of the state benefit application.
- Pandemic Unemployment Assistance (PUA)
- Extends benefits to self-employed, freelancers, gig-economy workers and independent contractors who would not otherwise be eligible to receive UI benefits.
- Pandemic Emergency Unemployment Compensation (PEUC)
- Extends benefits for an extra 13 weeks after regular unemployment compensation benefits are exhausted.
In just two weeks time 12 million more people in the US have applied for UI benefits, bringing the total to 22 million as of this blog post. Most states, if not all, are recommending that UI applicants apply for benefits online and reminding applicants that phone lines are extremely busy. This has caused delays for some people to even apply for UI benefits.
1. Who is covered by the new CARES Act law?
Signed into law on March 27, 2020, the CARES Act creates three new Unemployment Insurance (UI) programs. People covered under these three programs include those who:
- are traditionally not eligible for UI benefits (self-employed, part-time job seekers, people without sufficient work history, independent contractors and gig economy workers;
- are currently receiving UI benefits from their state; and,
- have recently exhausted their state UI benefits.
2. How much will those eligible for UI be able to receive?
Benefit amounts are calculated based on the income that a person has received over the benefit period, calculated by your state unemployment office (calculation and period vary by state). Those who are eligible to receive any UI benefits will also receive an additional $600 per week, which currently expires at the end of July 2020. If a person is eligible for even $1 of UI benefits, they will also receive the $600 FPUC payment. With the maximum UI benefit in each state plus the additional $600 payment, some employees will be paid a higher weekly wage while on UI benefits than they do when they are working.
3. Are independent contractors, freelancers and gig workers, freelancers covered in the bill? These worker-types are typically issued a 1099 from the company the perform services for and do not pay into the UI fund for their state.
Yes. The PUA provides benefits to those who are not normally eligible for UI benefits, which includes gig workers (Uber, Lyft, HomeAway, etc.), freelancers, and independent contractors. This special program expires on December 31, 2020.
UI applicants submitted for benefits under the PUA will need to provide self-certification that they are at least partially unemployed, or unable and unavailable to work because of one of the following circumstances:
- they have been diagnosed with COVID-19 or have symptoms of it and are seeking diagnosis;
- a member of their household has been diagnosed with COVID-19;
- they are caring for a family member or member of the individual’s household diagnosed with COVID-19;
- they are caring for a child or other household member for whom the caregiver has primary caregiving responsibility and the child or other household member can’t attend school or another facility because it is closed due to COVID-19;
- they are quarantined or have been advised by a health care provider to self-quarantine;
- they were scheduled to start employment and do not have a job or cannot reach their place of employment as a result of a COVID-19 outbreak;
- they have become the breadwinner for a household because the head of household has died as a direct result of COVID-19;
- they had to quit their job as a direct result of COVID-19; or
- their place of employment is closed as a direct result of COVID-19.
4. I am self-employed, but my business is no longer providing me with any income. Am I eligible for UI benefits?
Yes. Self-employed people are eligible for UI benefits under the new law. Self-employed workers are also eligible for the additional $600 weekly amount, which expires at the end of July 2020.
UI applicants will need to provide self-certification that they are at least partially unemployed, or unable and unavailable to work because of one of the following circumstances:
- they have been diagnosed with COVID-19 or have symptoms of it and are seeking diagnosis;
- a member of their household has been diagnosed with COVID-19;
- they are caring for a family member or member of the individual’s household diagnosed with COVID-19;
- they are caring for a child or other household member for whom the caregiver has primary caregiving responsibility and the child or other household member can’t attend school or another facility because it is closed due to COVID-19;
- they are quarantined or have been advised by a health care provider to self-quarantine;
- they were scheduled to start employment and do not have a job or cannot reach their place of employment as a result of a COVID-19 outbreak;
- they have become the breadwinner for a household because the head of household has died as a direct result of COVID-19;
- they had to quit their job as a direct result of COVID-19; or
- their place of employment is closed as a direct result of COVID-19.
5. What if I am a part-time worker who lost my job because of a coronavirus reason? Am I still eligible for UI benefits?
Yes. Part-time workers are eligible for partial benefits, which are calculated based on your recent wages. Part-time workers are also eligible for the additional $600 weekly benefit, which expires at the end of July 2020.
UI applicants will need to provide self-certification that they are at least partially unemployed, or unable and unavailable to work because of one of the following circumstances:
- they have been diagnosed with COVID-19 or have symptoms of it and are seeking diagnosis;
- a member of their household has been diagnosed with COVID-19;
- they are caring for a family member or member of the individual’s household diagnosed with COVID-19;
- they are caring for a child or other household member for whom the caregiver has primary caregiving responsibility and the child or other household member can’t attend school or another facility because it is closed due to COVID-19;
- they are quarantined or have been advised by a health care provider to self-quarantine;
- they were scheduled to start employment and do not have a job or cannot reach their place of employment as a result of a COVID-19 outbreak;
- they have become the breadwinner for a household because the head of household has died as a direct result of COVID-19;
- they had to quit their job as a direct result of COVID-19; or
- their place of employment is closed as a direct result of COVID-19.
6. What if I have COVID-19 or need to care for a family member who has COVID-19 and I cannot work from home? Am I eligible for UI benefits?
If you have received a diagnosis, are experiencing symptoms or are seeking a diagnosis and you are unemployed, partly unemployed or cannot work as a result (including unable to work from home), you are eligible to receive UI benefits. If you need to care for a member of your family or household who has received a diagnosis and are unable to work from home, you are eligible to receive UI benefits.
7. What if my child’s school or daycare shut down? Am I eligible for UI benefits?
If you rely on a school, daycare, or another facility, elderly parent, or another household member to care for a child so that you can work, and that facility has been shut down because of coronavirus you are eligible to receive UI benefits. Provided that you are unable to work from home.
8. What if I have been advised by a health care provider to quarantine myself because of exposure to coronavirus? Am I eligible for UI benefits?
If you must self-quarantine due to exposure or possible exposure to the coronavirus, and are unable to work from home, the CARES Act allows you to receive UI benefits that normally you would not be eligible to receive.
9. I was about to start a new job and now cannot get there because of a COVID-19outbreak. Am I eligible for UI benefits?
Under the CARES Act, you are eligible for UI benefits. You are also eligible if you were immediately laid off from a new job and do not have a sufficient work history to qualify for benefits under normal circumstances. UI applicants will need to provide self-certification that they are at least partially unemployed, or unable and unavailable to work because of one of the following circumstances:
- they have been diagnosed with COVID-19 or have symptoms of it and are seeking diagnosis;
- a member of their household has been diagnosed with COVID-19;
- they are caring for a family member or member of the individual’s household diagnosed with COVID-19;
- they are caring for a child or other household member for whom the caregiver has primary caregiving responsibility and the child or other household member can’t attend school or another facility because it is closed due to COVID-19;
- they are quarantined or have been advised by a health care provider to self-quarantine;
- they were scheduled to start employment and do not have a job or cannot reach their place of employment as a result of a COVID-19 outbreak;
- they have become the breadwinner for a household because the head of household has died as a direct result of COVID-19;
- they had to quit their job as a direct result of COVID-19; or
- their place of employment is closed as a direct result of COVID-19.
10. My employer shut down my workplace because of coronavirus and I cannot work from home. Would I be eligible for UI benefits?
If you are unemployed, partly unemployed, or unable to work because your employer closed down, you are eligible to receive UI benefits under the CARES Act.
11. Is anyone explicitly excluded from receiving assistance under the CARES Act?
Workers who are able to perform their jobs through paid telework, and those receiving paid sick leave, PTO, emergency pay, paid family leave or any other company-sponsored paid leave program are not eligible. No “double-dipping”, so to speak.
12. How long will my benefit payments last?
Each state varies on maximum number of weeks for UI benefits, from a min of 12 weeks to max of 26 weeks. The CARES Act provides all eligible workers with an additional 13 weeks of UI benefits. If the UI benefit in your state is 12 weeks, you would be eligible for up to 25 weeks of UI benefits. The max UI benefit in any state is 39 weeks.
14. I am already receiving unemployment benefits. Will I receive any additional assistance under this new law?
Even if you are already receiving unemployment benefits for reasons unrelated to the coronavirus, your UI benefits will be extended by 13 weeks under the CARES Act. You will also be eligible for an extra $600 weekly benefit, which currently expires at the end of July 2020.
15. I exhausted my benefits some weeks/months ago. Can I get the 13 weeks of extended benefits? If yes, will I also get the extra $600 per week?
If you exhausted your regular UI benefits, there are provisions under the CARES Act that will provide you with an additional 13 weeks of benefits. You will also be eligible for an extra $600 weekly benefit, which currently expires at the end of July 2020.
17. How long will I need to wait to receive benefits?
Many states are waiving any waiting period for UI benefits and there is no waiting period for the additional $600 weekly payment. Each state varies on timing of payments and you should expect some delays given the enormous amount of UI claims over the past month. Applicants should be sure to file all claim forms on time with accurate and complete information.
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Thankful. In this year filled with so many unknowns and changes to the way we have to “be” with one another, it is perplexing to some to think about the things we are thankful for this year. I, however, didn’t seem to have any issue coming up with things I am thankful for in 2020. For the first time since my children were very young, (a time in our lives when everything was chaos most of the time with school, homework, after school activities, etc.), we sat around a table with each other and enjoyed dinner and “adult” conversation. My two college-aged sons came home for Spring Break in March and didn’t leave, moving to 100% remote learning and 100% in our refrigerator and pantry. We played games, had movie nights, worked on puzzles, told stories, found old home movies from when they were babies, and gained new appreciation for each other. I am thankful for this time with them. My husband and I both expanded our businesses, and while I became an expert on all things COVID, he became PMP certified. I worked on expanding my network, continuous learning, learning new industries, and mentoring others in the HR community. I am thankful that we are both working, supporting each other and supporting local businesses. We had powerful conversations with each other, with family and friends, with those who think like us and those who do not, with people we love, as our world stood divided over politics and racism. I am thankful for those who engage in respectful dialogue on these topics, who seek to understand, learn and share. We miss our friends and family we don’t get to see, and the “normal” we had been accustomed to all these years. I am thankful for the work we do to keep all of us safe, knowing that we will see one another soon, that this too shall pass. We are flexible and resilient, hopeful and compassionate, and most of all, thankful for the ability to choose how we show up every day. This week I choose to be thankful.
Don't tell me what you think/believe, show me.
As employers consider if they will need to furlough employees, lay them off, or are contemplating a reduction in force, here are some things to consider for planning purposes.