I've seen a lot of headlines about fear that workers will quit their jobs and seek an unemployment claim, rather than stay at their job, because the CARES Act increases unemployment benefits. I've also read direct concerns from employees and employers about the best way forward when PPP loans might not be enough (see our post from April 7 on this), as well as general confusion. There is a lot of fear, and a lot of job losses already.
So what does the CARES Act actually do? Does it permanently change unemployment benefits and considerations? Does it last a long time? And other what-ifs. Here are a few pieces that go into greater depth about these questions, as well as the long-term implications of changes in benefits during this crisis.
Unemployment Compensation Changes in the CARES Act (The Tax Foundation)
This article gives an assessment of options for employers and employees who are facing changes in work status due to quarantine or illness. The Tax Foundation captures excellent data on unemployment claims and state-by-state tax comparisons.
CARES Act Expands Unemployment Insurance Benefits (National Law Review)
The NLR investigates key changes to unemployment benefits, as well as the new unemployment insurance benefits specific to the pandemic, with a few key takeaways to note: the additional $600 benefit is available to unemployed workers from April 5, 2020 to July 31, 2020 - after that, benefits revert to their previous amount; and individuals who are able to work remotely or are receiving paid or sick leave, cannot access the newly created pandemic unemployment benefit. Businesses can recoup certain costs, and some eligibility requirements remain the same. Each state continues to manage unemployment benefits through its labor departments. Read on for more.
Gig workers await access to unemployment compensation, but some are still weighing options (Pittsburg Post Gazette)
The Post-Gazette follows several workers in the gig economy (e.g. Uber drivers, etc.) while drawing a larger picture about independent contractors and how, or whether, they can access unemployment benefits similarly to regular W2 workers. From the article: "The latest federal stimulus package means that the government is footing the bill for those who file for unemployment, rather than the tech companies that rely on gig workers. But the legislation could change future conversations. "If the federal government considers them eligible for this federal pandemic unemployment compensation, then perhaps in the future all freelancers, gig workers and the self-employed will be eligible for unemployment compensation on a regular basis..."
Reminder: find out more about Pennsylvania requirements here (updated April 6).