CARES Act Significantly Expands Unemployment Benefits

This comes just one day after reports revealed that a record 3.3 million people applied for unemployment last week alone, as more and more companies have been forced to furlough or lay off workers to both prevent the spread of COVID-19 and keep their business from bottoming out. The CARES Act also comes at a time when the number of those being diagnosed with the virus is exponentially escalating. Fortunately, the CARES Act includes provisions designed to put more money in the hands of the millions of people whose hours have been cut drastically, who have been furloughed or terminated by their employer, or who cannot work because of COVID-19.

The CARES Act makes unemployment benefits available to more types of workers than ever before. For the covered period between January 20, 2020 and December 31, 2020, the Act makes benefits available not only to independent contractors and the self-employed, but to any other individual who self-certifies that she/he is unable to work or can only partially work because:

• • The individual has been diagnosed with COVID-19 or is experiencing symptoms of COVID-19 and seeking a medical diagnosis.
  • A member of the individual’s household has been diagnosed with COVID-19.
  • the individual is providing care for a family member or a member of the individual’s household who has been diagnosed with COVID-19.
  • A child or other person in the household for which the individual has primary caregiving responsibility is unable to attend school or another facility that is closed as a direct result of the COVID-19 public health emergency and such school or facility care is required for the individual to work.
  • The individual is unable to reach the place of employment because of a quarantine imposed as a direct result of the COVID-19 public health emergency
  • The individual is unable to reach the place of employment because the individual has been advised by a health care provider to self-quarantine due to concerns related to COVID-19.
  • The individual was scheduled to commence employment and does not have a job or is unable to reach the job as a direct result of the COVID-19 public health emergency.
  • The individual has become the breadwinner or major support for a household because the head of the household has died as a direct result of COVID-19.
  • The individual has to quit his or her job as a direct result of COVID-19.
  • The individual’s place of employment is closed as a direct result of the COVID-19 public health emergency.

Individuals who are able to work from home and those who are receiving paid leave under the Families First Coronavirus Emergency Response Act are not eligible. Also, the CARES Act pays out-of-work individuals an extra $600 a week for four months in addition to the state benefits they otherwise would receive, extends the time period during which individuals may receive benefits by 13 weeks (provided the total time does not exceed 39 weeks), and does away with the one week waiting period for benefits.

With the foregoing measures, perhaps the CARES Act will curb some of the emotional and financial strain individuals are feeling as a result of COVID-19.

Read our additional guidance since this was first published.

The Coronavirus Task Force at Klehr Harrison stands ready to assist you in your business and legal needs. We will continue to provide additional information and guidance as the COVID-19 situation develops.

Author Lee D. Moylan is a partner in the Labor & Employment practice group at Klehr Harrison.