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1 1 (March 26, 2020)

handle is hein.crs/goveawi0001 and id is 1 raw text is: Congressional Research Service Inforrning the legislative debate since 1914 March 26, 2020 Unemployment Insurance Provisions in the CARES Act (H.R. 748, as Amended) This In Focus summarizes the Unemployment Insurance (UI) provisions in Title II, Subtitle A, of the CARES Act, H.R. 748, as amended, and as passed by the Senate on March 25, 2020. It also provides a brief comparison with the UI provisions enacted in H.R. 6201/P.L. 116-127, the Families First Coronavirus Response Act. Expanded Benefit Eligibility Section 2102 of the CARES Act would create a temporary, federal UI program for individuals not otherwise eligible for UI benefits (e.g., self-employed, independent contractors, gig economy workers): Pandemic Unemployment Assistance (PUA). PUA would provide up to 39 weeks of federally financed UI benefits to unemployed workers who (1) are ineligible for any other state or federal UI benefit; (2) meet conditions related to being unemployed, partially unemployed, or unable to work due to COVID-19; and (3) are not able to telework and not receiving any paid leave. The PUA maximum duration of 39 weeks would be offset by any weeks of other UI benefits payable to an individual; including regular, state Unemployment Compensation (UC), Pandemic Emergency Unemployment Compensation (PEUC, described below), or Extended Benefits (EB). PUA would be available in all states and U.S. territories, subject to agreements with U.S. Department of Labor (DOL). PUA would pay benefits for weeks of unemployment, partial unemployment, or inability to work beginning on or after January 27, 2020, and ending on or before December 31, 2020 (hereinafter, end of December 2020). PUA benefits could be paid retroactively. The PUA benefit amount would be the weekly benefit amount (WBA) as calculated under state law based on recent earnings (subject to the minimum benefit under Disaster Unemployment Assistance [DUA], which is half of the state's average weekly UC benefit amount). In territories without UC programs, the PUA benefit would be determined by DUA regulations. For background on DUA, see CRS Report RS22022, Disaster Unemployment Assistance (DUA). All PUA benefits, like other UI benefits, would be augmented by $600 a week (see below for description of the Federal Pandemic Unemployment Compensation) through July 2020. Additional Weeks of Benefits Section 2107 would create PEUC, which would authorize up to 13 additional weeks of federally financed UI benefits for individuals who exhaust state and federal UI benefits https://crsreport and are able, available, and actively seeking work, subject to COVID-19-related flexibilities. PEUC would be authorized through the end of December 2020. The PEUC benefit amount would be the WBA as calculated under state law. All PEUC benefits would be increased $600 a week by Federal Pandemic Unemployment Compensation (FPUC, described below) through July 2020. (During the period that PEUC is authorized, states would be prohibited from reducing UC benefit amount or duration.) Additional $600 Weekly Federal Compensation Section 2104 would provide an additional, federally financed $600 benefit that would augment all weekly UI benefits including PUA, UC, EB, and PEUC. This FPUC would be payable for weeks of unemployment ending on or before July 31, 2020. (During the period that this payment is authorized, states would be prohibited from reducing UC benefit amount or duration.) Other UI Provisions * Section 2103 would, through December 2020, provide 50% federal funding of regular UC benefits based on service with reimbursing employers, which are state and local governments, Indian tribes, and nonprofit organizations that have opted not to pay UI taxes, but instead reimburse states for UC benefits paid to their former employees. This provision would provide financial relief to these reimbursing employers. It would also allow for state flexibility in the timing of required reimbursement payments for these employers. * Section 2105 would provide 100% federal financing through the end of December for UC benefits provided during the first week of unemployment in state UC programs with no one-week waiting period (thus, incentivizing states that require one-week waiting periods before receiving UC under state law to remove them). * Section 2106 would waive federal requirements regarding merit staffing for state UC programs on an emergency, temporary basis in response to COVID-19 until December 31, 2020. This waiver would be limited to certain temporary actions taken by states to quickly process UI claims, including rehiring former employees and temporary hiring. * Sections 2108-2111 would authorize 100% federal financing of Short-Time Compensation (STC; work sharing) in states with existing programs and 50% igross.gov 0