On April 17, 2020, the Department of Labor’s Deputy Assistant Secretary Joe Wheeler, by letter to Democratic lawmakers, clarified several eligibility criteria for the CARES Act Pandemic Unemployment Assistance Program (PUA). The Department stated in the letter, among other things, that self-employed gig economy workers and workers who cannot work because they have coronavirus symptoms and are seeking a diagnosis may receive federal unemployment assistance under the PUA program.
The CARES Act provided a $2.2 trillion to address historically unprecedented unemployment rates caused by the pandemic. Its key provisions include three federally funded unemployment insurance programs to supplement and extend states’ existing unemployment regimes:
- Federal Pandemic Unemployment Compensation (FPUC);
- Pandemic Emergency Unemployment Compensation (PEUC); and
- PUA.
FPUC provides claimants $600 per week in addition to their state-based unemployment through July 31, 2020 in most states.
PEUC provides an additional 13 weeks of state unemployment insurance after a worker exhausts his or her regular state benefits and requires the federal government to reimburse states that waive the typical one-week unpaid waiting period for unemployment benefits.
PUA provides unemployment assistance to workers typically excluded from regular state unemployment benefits, such as self-employed workers, including independent contractors, and workers with limited work histories. Under this program, workers ineligible for state benefits may receive up to 39 weeks of unemployment benefits through December 31, 2020 if they certify that they are (1) partially or fully unemployed, or (2) unable or unavailable to work due to COVID-19-related circumstances.
In the DOL’s letter, the agency explained that:
“While a positive COVID test is sufficient to qualify for PUA eligibility, a qualifying diagnosis does not require a positive test. As a result, “any diagnosis from a qualified medical health professional is also sufficient for a person to qualify for PUA.”
Either a positive test or having symptoms and seeking a diagnosis is sufficient for PUA eligibility, regardless of the impact on the employment relationship.
The closure of a school or another facility is equally sufficient for PUA eligibility.
Stay-at-home and shelter-in-place orders are equally sufficient for PUA eligibility.
Health care advice to self-quarantine is sufficient for PUA eligibility.
Independent contractors, including gig economy workers, who experience a “significant diminution of work as a result of COVID-19” may be eligible for PUA.
PUA eligibility can be both sequential and contemporaneous with other CARES Act unemployment provisions without requiring an individual to complete a separate initial claim.
The letter advised that the DOL is planning to issue guidance to answer common state questions.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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