Hey, guys, it's Ginny Silver.
And today I want to talk to those of you that are wondering
what is the future of the federal provisions for unemployment?
The 300 Dollars Boost, PUA and PEUC and an update on these
federal provisions for unemployment following the release
of an unfavorable jobs report for the month of April released
by the Department of Labor, many Republican led States have
stated that they will be opting out of federal provisions
for unemployment earlier than the September six and date.
The April jobs report that was released by the Department
of Labor show that 226 jobs were added to the economy during
the month of April.
This is a sharp decline from the 770 0 jobs that we saw added
in the month of March and far below the projected 9,950 jobs
that economists had forecast would be added to the economy.
Additionally, we remain at 8.2 million jobs below pre pandemic
level. The release of this jobs report led to the state of
Montana stating that it would be withdrawing from federal
provisions for unemployment early, which now has triggered
many other Republican led States to follow suit.
The following States will no longer participate and enhance
federal unemployment benefits, Alabama, Arizona, Arkansas,
Georgia, Idaho, Iowa, Mississippi, Missouri, Montana, North
Dakota, Ohio, South Carolina, South Dakota, Tennessee, Utah
and Wyoming.
Additionally, many States are choosing to change their work
search requirements in order for claimants to continue to
receive benefits.
Additionally, in the Senate, we saw proposed a new bill to
end the 300 Dollars FPUC boost at the end of May.
This is known as the Get Americans Back to Work Act.
It is backed by 10 Republican senators and it would require
10 Democratic senators to get on board with it in order for
it to pass through the Senate.
Well, you guys, many of you are wondering, what does the
Cares Act language state and can States remove the ability
from claimants to collect Pua, PEUC in the 300 Dollars boost
early? Well, there are some legal experts that have been
dissecting the Cares Act text and have confronted the Department
of Labor about their responsibility to still deliver certain
federal level pandemic related unemployment benefits even
if States remove them.
NELP is the National Employment Law Project, which
is a worker advocacy legal Center in Washington.
On Wednesday, NELP wrote a letter to the Labor Secretary at
Marty Walsh.
So what specifically does the Cares Act language state about
whether or not States can opt in or opt out of paying out
PEUC, FPUC, and PUA?
Now, the Cares agreements themselves appear to allow States
to terminate all Cares programs early.
However, the Cares Act itself does not support the same state
discretion for the PUA program the way that it is written
in the Cares Act.
MEUC, PEUC, FPUC, the 300 Dollars Boost, the extension in the
mixed earners boost can all be opted out of, but PUA cannot
necessarily be opted out of because the language is written
differently. Now, what about the 300 dollars FPUC boost?
What does the Cares Act language state about that federal
State agreements?
Any State which desires to do so may enter into and participate
in an agreement under this section with the Secretary of
Labor. Any State which is a party to an agreement under this
section upon providing 30 days written notice to the Secretary
may terminate such agreement.
There's a similar opt in and opt out provision for PEUC and
the Cares Act.
However, the Pua section of the Cares Act does not contain
similar language.
The State discretion agreement language for FPUC and PEUC is
replaced in Pua was something different.
Now in the Cares Act text, Pua specifically is put upon the
Department of Labor as its responsibility to make sure that
an eligible claimant receives those benefits.
Now, the Cares Act States that the Secretary shall provide
to any covered individual unemployment benefit assistance
while such individual is unemployed, partially unemployed,
or unable to work for the weeks of such unemployment, with
respect to which the individual is not entitled to any other
employment compensation.
It then goes on to state, The Secretary of Labor must provide
Pua benefits to an individual who is determined to be eligible.
In addition, the Cares Act language makes it clear that any
Pua payment to a covered individual must also include an
additional 300 dollars.
NELP States that therefore, the Department of Labor's duty
to provide Pua to covered individuals means Pua recipients
should, as part of their Pua payment, received the Pua weekly
benefit amount plus the additional 300 dollars.
They state here that this would apply even if a State terminated
its agreement to pay FPUC.
Recently, several States announced that they are terminating
their agreement early, and this leaves the Department of
Labor in a quandary because they are obligated to provide
assistance. Because the Cares Act places the burden of providing
Pua assistance on the Department of Labor Secretary, even
if the States opt not to provide PUA, the Department of Labor
is still not relieved of that burden.
NELP then goes on to provide two suggested options, in
the case that a state wants to opt out of paying out PUA
on number one is requiring States to continue paying PUA.
The Department of Labor Code require canceling States to
continue paying PUA.
Under this option, Department of Labor could allow you State
to terminate their FPUC, PEUC and MEUC agreements, but require
it to continue to administer Pua benefits.
So because there is no provision in PUA allowing States to
opt in and out, it would be in the Department of Labor's
discretion not to allow States to opt out of PUA.
The second option includes entering into an agreement with
other States to administer PUA.
Another option for the Department of Labor to meet their
obligation under the Cares Act to provide Pua to every covered
individual would be to enter into an agreement with another
State to administer Pua for any covered individual whose
state agency has stopped administering Pua benefits.
Now, there's nothing in the Cares Act that prohibits this
opting into an agreement with another state to pay it out
to eligible claimants.
And there is a precedent of other States doing this when
they needed to pay out Dua claimants in the case of other
natural disasters.
Okay, guys.
So I hope that was helpful in giving you an understanding
of exactly what the Cares Act language States in terms of
the federal provisions for unemployment.
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If a state is able to opt in or out of what is happening,
this is a sharp decrease from the 770,000 jobs that were
added during the March March of month.
The March of month.
What March is it this month.