Federal stimulus package would increase unemployment insurance benefits

By: Emily Makings
9:33 am
March 27, 2020

As Kriss noted yesterday, initial claims for unemployment insurance (UI) during the week ending March 21 were up significantly, in both Washington and the U.S. as a whole. (Kriss also looks at claims by industry here.) And, as Rachel La Corte of the Associated Press reports, “Based on the number of claims that have come in already this week and the number of calls the agency is receiving, Employment Security Department Commissioner Suzi LeVine said the numbers will continue to climb in the state.”

The federal coronavirus aid package that was passed by the U.S. Senate on Wednesday (and is expected to be passed by the U.S. House today) would increase unemployment insurance benefits.

Under the bill, individuals would receive their regular weekly state UI benefits plus $600 funded by the federal government (for weeks ending on or before July 31, 2020). This means that the weekly UI benefit for Washingtonians would increase to $788 for those receiving the minimum benefit and to $1,390 for those receiving the maximum benefit.

UI benefits for individuals who have exhausted all rights to regular UI compensation, have no rights to regular compensation, and are actively seeking work would be extended by 13 weeks (paid for by the federal government). (Washington’s maximum duration of benefits is 26 weeks, so the maximum duration would be extended to 39 weeks.)

These provisions would be extended to individuals who are not eligible for regular UI compensation, including those who are otherwise able to work except they or someone in their family have been diagnosed with COVID-19, they are caring for someone with COVID-19, schools or place of employment are closed due to COVID-19, or they quit due to COVID-19. They would also be extended to individuals who are self-employed, seeking part-time work, or do not have sufficient work history.

Additionally, if states waive the one-week waiting period, the federal government will cover the cost of the benefits paid in that week. (Gov. Inslee suspended the waiting period on March 18.) Finally, the federal government would fund short-time compensation paid by states through Dec. 31, 2020. (Washington’s short-time compensation program is called SharedWork.)

These actions are in addition to $1 billion in emergency administrative grants for UI that Congress enacted last week. Also, Gov. Inslee has suspended state requirements that individuals must be actively seeking work in order to be eligible for UI benefits.

(See these earlier posts for more on UI and the federal bill.)

Categories: Categories , Economy , Employment Policy.
Tags: CARES Act , COVID-19