Labor Chief Says 29 States Paying Virus Relief Jobless Benefits

The nation’s top labor official voiced confidence that his agency is tirelessly helping states overcome unemployment insurance challenges during the pandemic-induced economic crisis, even as states and workers continue to express impatience.

In the weeks since the $2 trillion CARES Act (Public Law 116-136) was signed into law March 27, Labor Secretary Eugene Scalia and the Labor Department have been under pressure from Democrats and Republicans to implement an overhaul of the federal-state unemployment insurance system to meet the needs of workers sidelined due to Covid-19.

“I used the authority provided to me in the legislation to expand on what Congress wrote to ensure additional eligibility for rideshare workers like Uber and Lyft drivers,” Scalia said on a call for reporters Wednesday. “Twenty-nine states are now paying their workers the $600 weekly plus-up provided by the CARES Act. More states will follow in the coming days.”

Scalia’s remarks come as Senate Democrats and left-leaning organizations criticize the department’s recent guidance to states for restricting workers from receiving jobless benefits who should be covered by the virus relief package. Governors from both sides of the aisle have been pressing DOL for faster and clearer assistance in their efforts to implement the law by processing claims for gig workers.

The stimulus package gives workers affected by the coronavirus a $600 weekly supplement on top of a regular unemployment payment for up to 39 weeks. It also extends jobless benefits eligibility to some independent contractors, gig workers, and others who wouldn’t traditionally be eligible for aid.

Two Steps Not Needed

Senior DOL officials attempted to assuage concerns that their recent guidance on the new UI program for independent contractors would require some workers to get denied for regular unemployment before filing a second time for the new program, called Pandemic Unemployment Assistance.

“We did learn that some states were saying to independent contractors and gig workers that you have to first get denied for unemployment insurance, then you have to come apply,” a senior department official said on the call. “We explicitly told the states that they should not require that futile initial step.”

Only two states have begun administering and paying Pandemic Unemployment Assistance claims, said John Pallasch, the DOL’s assistant secretary for employment and training.

Many states have told independent contractors and others who want to apply for PUA that they’ll need to wait until they can reprogram their software to process claims under this new program.

Scalia on Wednesday also pointed out that DOL already has distributed $500 million in administrative support to state unemployment insurance offices, which have been struggling to meet the surge in claims for workers laid off due to the virus. Another $500 million is on the way, he said.

“We know that a number of states have now significantly increased staffing at their unemployment offices and we are seeing signs that states are getting past the operational problems that some experienced with the initial large increase in filings,” Scalia said.