As they receive Paycheck Protection Program loans, companies are increasingly concerned the people they laid off aren’t going to come back because they can earn more money on unemployment, thanks to an extra $600 added to their regular benefits.
The bonus benefits were part of the federal Coronavirus Aid, Relief and Economic Security (CARES) Act enacted in March.
During NJBIA’s Employment and Labor Law Policy Committee this past week, the idea was raised to create a mechanism to alert the New Jersey Department of Labor (DOL), which processes unemployment applications, that a filer has been offered employment and is therefore no longer eligible.
Under normal circumstances, unemployment insurance recipients have to take the work that is offered them or they lose their unemployment insurance benefits.But in the coronavirus pandemic, the issue is not that simple.
On the surface, the idea may make sense. DOL is overwhelmed with a 1,000% increase in applications due to the unprecedented business closings aimed at stopping the spread of the coronavirus. In addition to a volume of claims that was unimaginable even a couple of months ago, DOL offices are closed and employees are working remotely, much the same way many businesses are. While the department is processing claims at a rapid rate, the sheer volume has many applicants waiting for answers.
Furthermore, the Paycheck Protection Program (PPP) is designed to get or keep people off of unemployment by giving businesses the means to meet payroll even if they’re not open and people aren’t working. If they use the loans for payroll and meet all of the criteria, businesses will see part if not all of their loan forgiven.
John Sarno of the Employer Association of New Jersey said that simply being offered work though is not enough to disqualify someone from benefits.
“Many of the people who are not reporting back believe that their workplaces are unsafe, and if there’s a rational basis for that, then they’re going to get unemployment,” Sarno said. The CARES Act spells out the reasons that someone can get unemployment benefits, and they include a rational fear of contracting the virus at work when the employer is not taking proper precautions.
While some people may see it as being in their economic interest not to come back to work, many employees have legitimate concerns, Sarno said. Those with preexisting medical conditions or older workers who are more vulnerable to the coronavirus, for instance, will likely meet the criteria for staying on unemployment.
Can a laid off employee refused to come back to work remotely due to the extra $600 per week that are getting still stay on unemployment? Can they work 30 hours and still stay on unemployment so they don’t lose that stimulas.
Is it possible to post the answers to these questions? Some are relevant to more than one. Thx
It was my thinking that the additional $600 was designed to motivate people to do the right thing and stay at home rather than feel the economic need to return to work. In this was we would be able to flatten the curve and make sure that when we all came back to work we wouldn’t trigger a second wave and do deeper damage to the economy and public health.
Hi, I put the wrong start date for filing claim. How do I fix that?
As an independent contractor, I was successful in being approved for a PPP Loan, but since it was limited to cover only up to $100,000 yearly income, the amount calculated to much less than my normal average. (Their 2.5 months total came to 1 month average.) Is there a secondary option available?
I applied on 3/15/20 because my hours was cut suppose to go to work on the 20th then they close for covid19 mine is filed with amount and say not payable for four weeks now and no appointments or no other answers