Unemployment Insurance Benefits as a Part of the Stimulus Package
It appears that the stimulus package will dramatically improve Unemployment Insurance (UI) on a temporary basis to include the gig workforce and to up the weekly benefits.
The gig workforce does not typically qualify for UI. Under the stimulus package, they will temporarily. Who’s in the gig workforce? It’s Uber and Lyft drivers, the self-employed, temps, contract workers. It ranges from some farm workers, to some entertainers, to some who work in restaurants reliant on tips, to the child care provider. This is really important, but limited to the next time period only; it does not permanently improve UI for this workforce.
Individuals on UI will receive an additional $600 a week on top of their existing state UI benefits for four months. This is really vital because state UI checks are often 1/3rd to ½ of a worker’s weekly salary. Again this is not a permanent, but only a temporary change.
A State’s UI benefits will be extended an additional 13 weeks in light of the recession’s impacts.
States receive an additional $1 billion to help them administer the crush of new applicants for the program.
This component of the stimulus package will cost $250 billion. Over 3 million Americans filed for UI last week.
Prepared by: Lucien Wulsin
Dated: 3/25/20
Reference: https://www.cnn.com/2020/03/25/politics/senate-stimulus-unemployment-benefits-coronavirus/index.html