CARES Act: Impact on Unemployment Compensation

COVID-19
March 26, 2020
 

Title II of the CARES Act is captioned Assistance for American Workers, Families, and Businesses, and its Subtitle A expands the nation’s Unemployment Insurance system in three significant ways for those who are out of work due to COVID-19.

1. Expanded Eligibility

The CARES Act extends eligibility for unemployment payments to categories of workers previously not covered: the self-employed, independent contractors, “gig economy” workers, those with insufficient work history to qualify for unemployment benefits, and those who have already exhausted all rights to regular unemployment compensation.

2. Expanded Duration

The maximum period for receipt of benefits is increased to 39 weeks, up from the usual 26.

3. Expanded Benefit Amount

The law increases the weekly benefit amount by $600 per week for the period from the passage of CARES through July 31, 2020 (approximately four months).

These expanded benefits apply to any unemployment or partial unemployment caused by COVID-19 during the period January 27, 2020 through December 31, 2020. 


Calfee invites you to visit our COVID-19 Resource Center containing First Alerts to help guide you through the challenges faced by individuals and organizations as a result of the novel coronavirus outbreak. We are committed to helping you meet the diverse and complex challenges and navigate the disruptions caused by this pandemic. Please check the COVID-19 Resource Center regularly for the latest updates, or subscribe to receive the most up-to-date Alerts sent directly to your email inbox. Please whitelist info@calfee.com and news@calfee.com to ensure these emails make it past your spam filters and into your inbox.


For additional information on this topic, please contact your regular Calfee attorney or the author(s) listed below:

 
 
 
 
 

For more updates and alerts, visit the News section of Calfee.com.