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Overcoming Inequality in Unemployment Benefit Access and Utilization

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History may not repeat itself but it certainly rhymes. Today’s unemployed Black workers face a system of unequal state policies and practices that were created after the Civil War to maintain white supremacy and prevent Black Americans from obtaining wealth. These discriminatory policies drive enormous and persistent wage and wealth gaps, as well as the ongoing exclusion of Black workers from the benefits, rights, and protections we all deserve.

A reckoning is due.

Early in the pandemic, Working America — an organization that mobilizes working-class people to take action on pocketbook issues — partnered with policy experts at the National Employment Law Project, with the support of Open Society Foundations, to address a portion of this legacy: the unequal distribution of unemployment insurance (UI) benefits. Black workers are not only more likely to be unemployed during the pandemic but much less likely to receive UI. Law, policy, and practice may be the problems, but the solution begins with mobilization. 

Money Changes Everything

It’s no secret that the United States has a history of exploiting Black workers. But the extent to which one can draw a direct line between the current unemployment crisis and the history of enslavement is staggering. Throughout America’s history, Black Americans, especially in rural communities, have been subjected to discriminatory laws and policies aimed at keeping them from achieving economic parity with white workers.

Unemployment insurance is a good example. The program was designed so that not all workers would be eligible for benefits — including lower-paid workers, workers with short periods of employment, seasonal workers, and workers in industries that tend to be more highly populated by people of color, such as domestic and agricultural work. As a result, many Black workers don’t expect to be eligible for benefits and, therefore, never apply. Why apply just to be denied? 

The lowest UI benefit levels are in southern states with large Black populations. In states such as North Carolina and Florida, for example, fewer than 12 percent of jobless individuals received unemployment benefits last year. When workers in many southern states do get UI, the benefits are so low that they would barely cover the essentials. The maximum weekly benefit in Florida and Tennessee is $275; in Alabama, it’s $265; in Arizona, it’s $240; and in Mississippi, it’s $235. 

Black workers are far less likely to receive UI even when they apply for benefits. In a survey our organizations conducted in July, a majority of Black workers responded that they had exhausted their savings; nearly two-thirds admitted that they were now going without necessities. In comparison, only one in four white workers said they had exhausted their savings and only one in five admitted to skipping necessities.

A major reason for this disparity was workers’ ability to access UI. An analysis by Nyanya Browne and William Spriggs of Howard University and the AFL-CIO found that, “Just 13 percent of Black people out of work from April to June received unemployment benefits, compared with 24 percent of white workers, 22 percent of Latinx workers and 18 percent of workers of other races.” What’s more, 30 percent of Black adults who filed for unemployment benefits did not receive their payments. 

The difficulties people of color — and Black people in particular — have in accessing UI are systemic and ongoing. It isn’t only that most UI systems create barriers to access, including insufficient staffing, outdated web systems, and lack of adequate explainers for claimants. Individuals with uncommon or ethnic names were more likely to be denied benefits they were entitled to. This is not a function of law or policy but of individual people practicing discriminatory conduct. This practice robs individuals and their families of the meager economic safety net our society provides, putting them at a disadvantage that is hard to recover from. That is a lot of historical rhyming.

Changing the UI Experience

Working America and NELP partnered on this project to understand the problems with UI access and utilization for Black workers, use our available toolset to mitigate harm, and assist eligible workers in enrolling in UI. For this project, Working America is leveraging its digital organizing capacity and clinical testing know-how to boost UI utilization rates among Black workers using targeted text messages, email, and phone calls that can reach three million people a week.

Listening is the key to all good organizing, so we began our project by reaching out to 14,531 workers. Our goal was to document their experiences with the unemployment system, their attitudes toward the system, and their knowledge of the application process.

A full 53 percent of people told us that they or someone in their households had lost a job as a result of the pandemic. That number rose to 68 percent when we asked them about their friends.

Ayana, a 46-year-old Westland, Michigan, resident working in health care, said, “My friends, neighbors, and family members all have had to apply to UI … They all had technical difficulties [when applying]. It seemed like no one could ever talk to a live person.”

Keshia, a 44-year-old Greensboro, North Carolina, resident who works in human resources, said, “My sister lost her job in the medical field. She had to wake up very, very early, like 3:00 a.m., in order to apply through the online portal. Otherwise, it would be so slow it wouldn’t work. She was denied because there was some discrepancy with her name and had to keep going back and forth, but she eventually got it.”

Through conversations like these, we diagnosed several problems.

First, there was a clear geographic disparity. In southern states, problems were borne of deliberate policy choices that continue the long legacy of structural racism, including restrictive eligibility and low benefit levels. In addition, those living in rural counties faced greater difficulty accessing benefits than those living in urban areas. Even with Working America’s help, unemployed Black Americans in rural communities waited seven-to-eight days longer than unemployed white and Latinx Americans to receive benefits. 

Second, most people we spoke to were not aware of program eligibility rules and benefits. This was one of the primary reasons that they did not apply for benefits. Further, many saw their hours reduced rather than being laid off; these workers were often unaware that they were eligible for unemployment benefits.

In addition to these informal conversations, our large-scale survey of 14,135 workers found alarming but unsurprising conditions. Black and brown workers were the least likely to have savings, the most likely to have lost wages during the pandemic, and the most likely to be unable to pay for essentials such as groceries, medications, and rent. Across the board, there was little knowledge about the unemployment program’s eligibility criteria or benefit amounts, confirming what we heard in our informal conversations. 

There is reason to hope, however. A majority of people we talked with were willing to take action to help their friends and family access benefits. 

Our organizers provided Ayana, Keshia, and other similarly situated “peer organizers” with information about unemployment eligibility and how to access benefits in their state. We also followed up to make sure members of their communities were accessing benefits. 

We’ve been in back-and-forth communication with almost 7,540 Black workers who are sharing information about UI in their networks. By constantly testing our outreach through randomized control trials and making adjustments based on the evidence of what works, we are finding agents of change in the community. 

One UI recipient in Pennsylvania told us, “We’re never going to get out of this mess here in Philadelphia unless we start treating Blacks like everyone else … I can tell you care, and it sounds like you’ve been helping people here, so I’m going to share your stuff because I know a lot of people that sure can use it, and you’re right, I already know a few that might get evicted.” 

Another Pennsylvania resident told us he works as a manager for a construction company that had to lay off a lot of workers. He wanted information so he could help his employees file for unemployment benefits. Yet another man told us he was a landlord, and while he didn’t need help applying for benefits, he was interested in helping his unemployed tenants get the benefits they needed to stay afloat. 

Turning Enthusiasm into Action

We know we need to scale up this program to reach more affected workers. Our goal is to build an organizing formula that measurably increases the application and filing rates — and ultimately the level of income — in these communities.

Working with the Labor Lab at Columbia University, we are implementing randomized control trials to assess the effectiveness of campaign strategies in increasing awareness of unemployment benefits and action on UI claims in Black communities. We are focusing our efforts on the 42 counties across the country with the highest concentration of Black workers. In half the counties, we’ll saturate residents with calls, digital contacts, and grasstops organizing techniques. We will then track the change in claims at the county level to get hard data on the impact of our work.

We found that there is a lot of misinformation about unemployment benefits, so we developed quiz-style engagement actions. For example: “True or false? If you were out of work but found a new job, you can still get unemployment benefits for the time you were out of work.” These types of actions tend to have greater engagement.

In phone conversations, we have found that people are much less likely to agree to help with unemployment outreach if they have not been personally impacted by the unemployment crisis. However, upon learning that only one in four eligible Black workers applies for benefits, many wonder if people they know might be missing out. Overall, 70 percent of these people agreed to help others apply for unemployment benefits.

Our next step is to follow up with these peer organizers who have been sharing UI information in their communities to connect them with fellow activists, skilled organizers, and resources to help them become more effective at reaching those who need it most. By talking directly to workers and members of the community, we are able to help them navigate the complexities of accessing regular and expanded unemployment insurance benefits. By recruiting them as community organizers, we’re creating a movement that will help many more families who have lost wages gain financial ground.

Fixing Broken Policies

At the grasstops level, Working America and NELP are collaborating with other organizations to advocate for short- and long-term policy solutions to the unemployment crisis.

In the short term, we must meet the immediate needs of unemployed and underemployed workers. Congress must not only reinstate the $600 Federal Pandemic Unemployment Compensation (FPUC) benefit and other CARES Act provisions but also provide funding to state and local governments, ensure paid sick leave and child care for all working people, and deliver relief for workers ineligible for unemployment payments. USDOL’s Employment and Training Administration (ETA) must also make it clear that suitable work does not include unsafe work; if employers have not taken the minimum precautions set forth by the Centers for Disease Control and Prevention’s COVID-19 workplace guidelines, workers who quit their jobs should be eligible for unemployment benefits.

In the long term, Congress should consider federalizing UI — to operate similarly to Social Security — in order to address the wide disparity across states and populations. We should have permanent levers to automatically extend benefits during a recession, make worksharing available in every state, and provide dependent allowances for people who have children. Workers who are fleeing domestic violence, following a spouse whose job has moved, or leaving a job that jeopardizes their health and safety should be able to receive UI. And we should make sure that all workers, including those with erratic or part-time schedules and those whose job categories are currently excluded, are eligible to receive meaningful UI benefits. Finally, UI information technology (IT) systems must be easier for claimants to access. Individual states can take steps now to immediately address problems.

Ground-Up Systemic Change 

Many smart organizations and people have tried to increase UI access over the years, and a lot of work has gone into improving actualization of similar programs, such as Medicaid, EITC, and SNAP. What all these programs have in common is that they can change the dynamics of personal wealth and give working people what they need to gain some stability. We aren’t the first to tackle this issue, and we won’t be the last. 

The real power of this organizing project is the movement we’re creating to fix this rigged political economy and fight for the policy changes we desperately need. By arming people with the information they need to navigate the systems that have failed them for centuries, we can begin to break down some of the barriers that have kept wealth out of the hands of Black people. The key, we believe, is organizing communities not only to demand change of their elected officials but to make change themselves.

This blog originally appeared at The Forge on October 19, 2020. Reprinted with permission.

About the Author: Matt Morrison is the executive director of Working America, a three-million-member labor organization mobilizing working people who don’t have the benefit of a union at their jobs. He is a leading political practitioner with experience working in over 500 elections throughout his career.

Rebecca Dixon is executive director of the National Employment Law Project (NELP). NELP is a respected leader in federal workers’ rights advocacy and the go-to resource for state and local worker movements, providing unmatched policy, legal, and technical assistance.


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Unemployment Payments Are Running Out for Millions, Even As Long-Term Unemployment Surges

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Large numbers of jobless workers are seeing their unemployment payments come to an end as they reach their maximum weeks of eligibility despite short-term federal extensions. If Congress fails to act, millions more will suffer a total loss of income as their benefits expire at the end of the year.

The loss of unemployment payments hits workers of color, especially Black workers, the hardest. Because of structural racism, occupational segregation, and discriminatory exclusions from the labor market, Black workers have higher rates of unemployment, longer durations of joblessness, fewer funds to fall back on, and are more likely to live in states with the fewest weeks of available benefits.

An acute crisis looms in the very near term as the number of long-term unemployed workers—those out of work for 26 weeks or longer—is now surging. The seasonally adjusted number of long-term unemployed workers grew from 1.624 million in August to 2.405 million in September, the largest month-over-month increase since these data were first measured.

Historically, the duration of unemployment has been significantly longer for Black and Asian workers than for white workers, due to racist exclusions and other labor market inequities. In the 3rd quarter of 2019, an unemployment spell for Black and Asian workers lasted an average of nearly 26 weeks, compared with 19 weeks for white workers. As of 2019, 25.66 percent of Black unemployed workers were out of work for more than 26 weeks, versus 19.62 percent of white unemployed workers. Keep in mind that the unemployment rate for Black workers is usually about double that for white workers, so Black workers are facing a higher long-term unemployment rate on top of an already higher rate of joblessness.

If Congress fails to extend not only higher benefit levels but also the number of weeks of benefits, millions of unemployed workers will soon have zero income support, and these losses will hit Black and lower-income communities most affected by early layoffs the worst.

HOW MANY WEEKS OF UNEMPLOYMENT BENEFITS ARE AVAILABLE UNDER CURRENT PROGRAMS?

Workers in many states may qualify for up to 26 weeks of regular state unemployment insurance. However, after the Great Recession of 2007-2009, 10 states cut benefit duration. Alabama was the last state to do so; in June 2019 it cut benefits to 14 weeks. Three states cut maximums from 26 to 20 weeks (Michigan, Missouri, and South Carolina), one state cut maximum benefit duration to 16 weeks (Arkansas), and five states adopted sliding scales tied to state unemployment rates (Florida, Georgia, North Carolina, Kansas, and Idaho).

Since the start of the pandemic, however, four of those states restored benefits to 26 weeks: Michigan, Kansas, Idaho, and Georgia. Unfortunately, Michigan’s executive order restoring benefits was recently struck down by the state’s Supreme Court, which caused the state to temporarily drop back to 20 weeks until emergency temporary legislation was signed this week once again restoring 26 weeks of benefits through the end of the year. Idaho’s duration is based on its unemployment rate and has decreased to a maximum of 20 weeks.

As part of the CARES Act, Congress added 13 weeks of additional benefits called Pandemic Emergency Unemployment Compensation (PEUC). But that program is set to expire at the end of the year, as is the Pandemic Unemployment Assistance (PUA) program, which pays unemployment aid to millions of workers who don’t qualify for regular unemployment insurance (UI). Another program called Extended Benefits (EB) may add 50 percent more weeks than are available in regular state UI if the state’s unemployment rate is over 5 percent and more than 120 percent higher than it was for the same 13-week period over the past year; or states may adopt optional triggers that allow EB to kick in more readily. Moreover, states can adopt an additional trigger to add seven more weeks during periods of very high unemployment of more than 8 percent. You can find out if a state has triggered onto EB and the number of weeks here.

After that time, if workers have a qualifying COVID-related reason for being unemployed, they can then move into Pandemic Unemployment Assistance to get up to 39 total weeks of benefits, or 46 weeks in states with the extra high-unemployment-rate trigger allowing for seven more weeks. Generally, PUA will not apply to someone who originally was eligible for UI plus the available extensions, except in states with fewer than 26 weeks of regular benefits. PUA is generally available for 39 or 46 weeks—that is, until the end of December, when the program is currently set to expire.

HOW DO WORKERS APPLY FOR EXTENDED UNEMPLOYMENT ASSISTANCE?

Does that all sound confusing? Hopefully, for a claimant, shifting between programs should be a smooth process. Federal guidelines do require that workers affirmatively apply for the extra 13 weeks of unemployment benefits available under PEUC, and states are supposed to inform workers when they are eligible and tell them how to apply. It appears some agencies may not be doing that. But overall, the most current data showing regular UI exhaustion versus PEUC recipiency seem to indicate that the transition is by and large smooth for most workers. Anecdotally, workers in states like Michigan report the process to be seamless.

IS CONGRESS GOING TO EXTEND UNEMPLOYMENT BENEFITS INTO 2021?

Without Congressional action to extend the CARES Act’s PEUC and PUA programs into 2021, millions of workers will drop to zero benefits by the end of this year. Workers who became unemployed the third week in March will run out of benefits before the last week of the year—about a week earlier than the CARES Act programs run out. Any worker who was unemployed prior to the start of the pandemic, however, will not only run out sooner but also may be unlikely to qualify for PUA without a COVID-related cause for their initial unemployment. Considering PUA eligibility extends to pandemic-related unemployment going back to the end of January, some workers are already exhausting PUA. Layoffs related to the pandemic stretch back much farther than the initial spike in new claims—the State of Washington reported a 30 percent increase in claims the first week in March, for example. Finally, workers in states with fewer than 26 weeks of regular eligibility may have difficulty establishing a COVID-related cause to qualify for PUA after their regular UI, PEUC, and EB run out. Given the first-fired, last-hired systemic racial discrimination in employment for Black workers, and the fact that this recession has hit Black workers harder than white workers, extensions in the duration of unemployment payments is a particularly important racial justice issue.

In the short term, Congress and the Trump administration must reach a deal to extend the number of weeks available during this recession. To ensure we do not repeat past mistakes of leaving workers behind in the recovery, we should peg the number of weeks of benefits available to the duration of unemployment that Black workers experience. And we must address the long-term structural changes that are needed to ensure we have a UI system that centers the experiences of Black workers so that it is built to meet the needs of all workers.

This blog originally appeared at National Employment Law Project on October 23, 2020. Reprinted with permission.

About the Author: Michele Evermore is a Senior Policy Analyst for NELP. Her areas of expertise are Retirement Security, Social Security, Unemployment Insurance, and Worker Training.


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Unemployment Systems Floundering Without Worker-Centered Design

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New York, NY—The Century Foundation, the National Employment Law Project, and Philadelphia Legal Assistance today released the findings of an intensive study of state efforts to modernize their unemployment insurance benefit systems. This is the first report to detail how technology modernization has altered the experience of jobless workers.

The report, which was supported by a grant from the Robert Wood Johnson Foundation, draws lessons from state modernization experiences and recommends user-friendly design and implementation methods for future projects.

Read the new report, “Centering Workers: How to Modernize Unemployment Insurance Technology”

The COVID-19 pandemic has laid bare the struggling technology holding up our unemployment systems and the harm to workers when they cannot navigate or access their unemployment benefits.  Many state systems were programmed with COBOL, a long-outdated computer language.  While some states have undertaken modernization projects, many encountered significant problems and workers paid the price through inaccessible systems, delayed payments, and even false fraud accusations. The COVID-19 pandemic, which led to an unprecedented spike in unemployment claims, has further exposed the weaknesses in these systems and the difficulties workers face with their unemployment claims.

State officials have at times been candid about the deep flaws in their systems. Pennsylvania’s labor secretary described their 50-year old computer system as “held together with chewing gum and duct tape.”  Florida’s own state auditor found numerous flaws in the state’s new computerized system that went unfixed through multiple administrations. States and the private companies that develop these systems failed to consistently seek worker input and build systems focused on user experience.

The report also explores how modernization and controversial new technology like predictive analytics can affect access to benefits.

“Much remains unknown about how state unemployment agencies are using technology like automated decision-making, predictive analytics, and artificial intelligence,” added Julia Simon-Mishel, supervising attorney of the Unemployment Compensation Unit of Philadelphia Legal Assistance and principal investigator for the report. “While these tools can sometimes be helpful, we remain concerned about fairness, accuracy, and due process.”

“The pandemic has underscored that unemployment insurance is a lifeline for workers, yet state systems are rarely built with workers’ needs in mind,” said?Michele Evermore, senior policy analyst with NELP and a co-author of the report. “Our report finds that Black and Latinx workers are particularly poorly served by unemployment insurance systems. We have to do better.”

To date, fewer than half of states have modernized their unemployment benefits systems. Several have plans to modernize or are already in the midst of modernizing. The report provides guidance for them, as well as for modernized states looking to improve their systems.

The report also recommends six steps states can take right now, to expand access to benefits during the pandemic:

  1. provide 24/7 access to online and mobile services for unemployed workers;
  2. mobile-optimize unemployment websites and applications;
  3. update password reset protocols;
  4. use call-back and chat technology;
  5. adopt a triage business model for call centers; and
  6. comply with civil rights laws requiring that websites and applications be translated into Spanish and other commonly spoken languages.

“Modernization needs to be approached carefully to avoid creating new problems for workers,” noted?Andrew Stettner, senior fellow at The Century Foundation and a co-author of the report. “Our analysis shows that states were able to pay benefits more quickly after modernizing their systems, but workers were more likely to be denied assistance and too many of these denials were inaccurate. These problems have been magnified during the pandemic when no one should have to choose between paying rent, putting food on the table, and good health.”

The findings and recommendations in the report are grounded in publicly available data on unemployment insurance system performance, interviews with officials from more than a dozen states, and in-depth case studies of modernization in Maine, Minnesota, and Washington, conducted from October 2018 to January 2020.

This blog originally appeared at National Employment Law Project on October 5, 2020. Reprinted with permission.

About the Author: The National Employment Law Project is a non-partisan, not-for-profit organization that conducts research and advocates on issues affecting low-wage and unemployed?workers. For more about NELP, visit?www.nelp.org. Follow NELP on Twitter at @NelpNews.


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U.S. workers filed 881K claims for jobless benefits last week

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More than 880,000 people filed new applications for unemployment benefits last week, the Labor Department reported on Thursday.

The numbers are not directly comparable to previous weeks because of a change the Labor Department made in how it calculates the claims, which are seasonally adjusted. The number appears lower than the previous week’s 1 million claims, but that reflects a change in the Labor Department’s methodology rather than a strengthening of the U.S. labor market, economists say.

On an unadjusted basis, unemployment claims under state programs rose 0.9 percent from the previous week.

An additional 760,000 laid-off workers filed for jobless aid under the new pandemic unemployment assistance program, created for those not traditionally eligible for unemployment benefits like the self-employed and gig workers. That also marks a rise from the previous week’s 607,806 claims under that program.

Overall claims remain at historic highs. In total, more than 29.2 million workers are receiving unemployment insurance benefits, the Labor Department said, an increase from the prior week’s 27 million.

Why the change? The Labor Department regularly reports seasonally adjusted data, which accounts for expected changes in the labor market, such as when a large number of temporary retail employees get laid off after the holidays.

But economists say that methodology had been causing major distortions to the data during this recession, given how many workers were filing for unemployment due to unexpected coronavirus shutdowns. Experts welcome the change, which they say should make the numbers more accurate in the future, but they warn against trying to compare this week’s seasonally adjusted data to weeks prior.

Regardless of the change in calculations, non-seasonally adjusted data shows overall claims rose last week to 833,352 from 825,761 the week before.

What’s next: The Labor Department will report jobs numbers for the month of August on Friday. The July report showed an overall unemployment rate of 10.2 percent, and while most economists expect that number to fall slightly in August, many expect the pace of job growth will slow down.

This article originally appeared at Politico on August 24, 2020. Reprinted with permission.

About the Author: Megan Cassella is a trade reporter for POLITICO Pro. Before joining the trade team in June 2016, Megan worked for Reuters based out of Washington, covering the economy, domestic politics and the 2016 presidential campaign. It was in that role that she first began covering trade, including Donald Trump’s rise as the populist candidate vowing to renegotiate NAFTA and Hillary Clinton’s careful sidestep of the Trans-Pacific Partnership.

A D.C.-area native, Megan headed south for a few years to earn her bachelor’s degree in business journalism and international politics at the University of North Carolina at Chapel Hill. Now settled back inside the Beltway, Megan’s on the hunt for the city’s best Carolina BBQ — and still rooting for the Heels.


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Unemployment insurance boost is tiny next to tax cuts for the rich, this week in the war on workers

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Republicans are doing their best to push people off of unemployment, with governors reopening states so that the most vulnerable workers are forced back into unsafe workplaces. But the Economic Policy Institute’s Josh Bivens and Heidi Shierholz write that the extra $600 in unemployment insurance has been the best economic response to coronavirus—and it needs to be extended.

“Money spent on continuing crucial unemployment insurance provisions will help avoid a prolonged period of high unemployment that will do far more serious and persistent damage to the economy,” they write. “In the last six weeks, close to 30 million workers have applied for unemployment insurance. It’s worth noting as a point of comparison that those 30 million workers would need to be provided an extra $1,400 per week for a year to match the fiscal size of the 2017 tax cuts aimed at corporations and the rich.”

This blog originally appeared on Daily Kos on May 9, 2020. Reprinted with permission.

About the Author: Laura Clawson has been a Daily Kos contributing editor since December 2006. Full-time staff since 2011, currently assistant managing editor.


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Millions of gig workers are still waiting for unemployment benefits

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Rebecca Rainey

Most of the estimated 23 million independent contractors and gig workers made newly eligible last month for unemployment benefits during the coronavirus pandemic are still waiting for relief.

Six weeks after the pandemic set off a continuing wave of massive layoffs, only 21 states have started paying out benefits to self-employed workers and others not traditionally eligible, according to the Labor Department. That’s up from 10 last week. The payments are being made under a new temporary program, Pandemic Unemployment Assistance.

New Jersey is one of the states where self-employed workers are still waiting. More than 100,000 self-employed workers applied for jobless benefits there over the past several weeks, but the state won’t begin paying out the benefits until Friday, according to New Jersey state officials. They said the state will then need to take more time to verify those workers’ eligibility.

“The Department has worked hard over the past month to get this program up and running despite the unprecedented challenges of the coronavirus, and it is now available,” said New Jersey Labor Commissioner Robert Asaro-Angelo. “While it will take time to determine eligibility for everyone who seeks PUA benefits, the process has begun.”

States reporting the largest number of weekly claims, including California and Florida, have just started to get their systems up and running this week.

California, which launched its new program on April 28, has received 190,000 applications already from self-employed and contract workers, according to Governor Gavin Newsom. But state officials have warned the program is threatened by its overloaded system.

“We are getting our arms around this unprecedented volume,” Newsom said Wednesday.

California’s unemployment system has been slowed and strained by the more than 3.7 million applications it’s received since layoffs began in early March, officials say. The state has distributed more than $6 billion in benefits so far.

Florida, whose unemployment system has also been overwhelmed as more than a million people struggled to get assistance, did not start accepting applications from independent contractors and those are self-employed until this past Tuesday.

The instructions sent out by the Department of Economic Opportunity urged people who had turned in applications before April 4 to try again now. DEO’s own data shows that more than 266,000 people who had applied with the state since March 15 had been deemed ineligible, although the information released by the agency does not specify why people are being turned away.

Labor Secretary Eugene Scalia affirmed last week that his agency is “working very closely every day with states across the country to help them get these benefits to the Americans who are entitled to them.”

According to DOL, it’s delivered more than $750 million of $1 billion in emergency administrative funding provided by Congress to state unemployment offices to help them handle the surge in claims and implement the new program. “As they request this funding, we’re distributing it quickly,” Scalia said. “And if they don’t request it. We’re contacting them to see how we can help.”

States have been struggling to figure out how to calculate weekly benefit levels for these self-employed workers, whose wage information may be contained on multiple forms and is harder to verify.

California, which last year passed a sweeping bill aimed at compelling businesses to reclassify many independent contractors as employees, has said gig economy workers should be eligible to apply for benefits under the state’s normal unemployment insurance program.

But somedrivers for Uber and Lyft in California say the state is calculating their weekly benefits to be $0, because their companies aren’t sharing payroll information with the state unemployment agency.

Those app-based workers must then request an investigation from the state into their wage information — adding more time to the process.

Workers have also complained they haven’t even been able to apply for benefits, hindered by jammed phone lines and crashing websites, as state unemployment agencies scrambled to beef up their systems following the passage of the massive unemployment benefit extension included under the CARES Act.

Florida’s unemployment website, which was first installed in 2013, had been routinely been flagged by state auditors before the coronarvirus outbreak started. But the surge in jobless claims overwhelmed the system, forcing the state to leave it offline for hours. It was offline all of last weekend as the state tried to play catch up on processing claims. Florida decided to start accepting paper applications due to the website’s constant failings.

The DOL’s Office of the Inspector General recently warned that state legacy computer systems used to process unemployment benefits weren’t up to the job, and threaten “the management and oversight of UI benefits.”

“The risk of fraud and improper payments is even higher under PUA because claimants can self-certify their UI qualifications,” the IG wrote, urging the DOL’s Employment and Training Administration to work with states to establish better methods of detecting fraud and recovering improper payments.

DOL officials say the department has been reaching out to the states to discuss and offer assistance with IT and call center issues.

But according to economists, all workers, including those who are eligible for traditional benefits and don’t have to apply under the new federal program, have been struggling to get the unemployment relief in their pockets.

For every 10 people who said they successfully filed for unemployment benefits during the past month, three to four additional people tried to apply but could not get through the system, according to an survey conducted by the left-leaning Economic Policy Institute.

In total, DOL’s data indicates only 14 percent of the 12 million workers who filed for benefits in the month of March were paid an unemployment check, said Andrew Stettner, senior fellow at The Century Foundation. “While many of the claims that started in mid-March were likely paid not until April,” he said, “this figure is yet another sign underscoring the major structural challenges facing the unemployment program as it responds to the COVID-19 crisis.”

How an individual’s claim is processed varies widely from state to state.

“On the high end, Rhode Island made initial payments to 51 [percent] of the 60,000 individuals who filed claims,” he said. “On the low end, Florida only paid 2.4 [percent] of the 280,500 individuals who managed to file a claim, the third lowest in the country, just above Indiana, which stood at 2 [percent].”

In Iowa, one of the first states to get its PUA system up and running, officials pointed to its low unemployment rate and rurality as reasons why it was able to move so quickly.

“For the last couple years, our unemployment’s only been like 2.5 percent,” Iowa State Treasurer Michael Fitzgerald said. “So our unemployment fund started out really full.”

“In a lot of areas we didn’t have the shutdown as early as some of the other states,” he added, “so we were probably in a better spot than most other states, and able to attack it.”

Eleanor Mueller, Gary Fineout, Katy Murphy and Katherine Landergan contributed to this report.

This article was originally published at Politico on April 30, 2020. Reprinted with permission.

About the Author: Rebecca Rainey is an employment and immigration reporter with POLITICO Pro and the author of the Morning Shift newsletter.

Prior to joining POLITICO in August 2018, Rainey covered the Occupational Safety and Health administration and regulatory reform on Capitol Hill. Her work has been published by The Washington Post and the Associated Press, among other outlets.

Rainey holds a bachelor’s degree from the Philip Merrill College of Journalism at the University of Maryland.

She was born and raised on the eastern shore of Maryland and grew up 30 minutes from the beach. She loves to camp, hike and be by the water whenever she can.


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What will Florida’s new governor do for workers after a hurricane?

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Natural disasters create major challenges for workers on at least two fronts: people who can’t get to work or whose jobs disappear and need support, and the workers who help make recovery happen are too often underpaid and exploited. Saket Soni and Andrea Cristina Mercado, the executive directors of Resilience Force and New Florida Majority, respectively, write in the Orlando Sentinel that, after Hurricane Irma:

The human cost was also profound, as people struggled to rebuild their lives. Unfortunately, the most vulnerable often did so with little help from the government. Only 53 percent of eligible workers received disaster unemployment assistance, a cash benefit for those who lose their jobs because of a disaster. Tens of thousands stood in lines for hours at four South Florida sites in the heat to receive disaster food stamps, assistance to buy groceries and other food items, only to be turned away.

What should voters look to the next governor of Florida to do?

Some may criticize the notion of an expanded social safety net, saying that jobs, not welfare, are the solution. They could support our next governor in capitalizing on the momentum of the current movement for New Deal-style publicly funded jobs, as exemplified by Cory Booker’s Federal Job Guarantee Development Act. The next governor should also use existing work-force development or AmeriCorps funds to engage the unemployed and underemployed in high-need areas to mitigate climate change and repair, rebuild and prepare for the inevitable next disaster.

This blog was originally published at Daily Kos on October 27, 2018. Reprinted with permission. 

About the Author: Laura Clawson is labor editor at Daily Kos.


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Workplace bullying targets winning unemployment benefits appeals in New York State

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davidyamadaThanks to a developing line of administrative appeal decisions, workers in New York State who resign their jobs due to bullying and employer abuse could still retain eligibility for unemployment benefits.

Under New York State labor law, workers who voluntarily resign without good cause are presumptively ineligible to receive unemployment benefits. Most other states follow a similar rule. Of course, this frequently leaves targets of workplace bullying in a bind when it comes to qualifying for unemployment benefits. All too often, quitting is the only way to escape the abuse.

That’s why I was so pleased to hear from James Williams, an attorney with Legal Services of Central New York, who sent news of a recent decision in a case he argued before the New York Unemployment Insurance Appeal Board.

Case Details

The claimant appealed a denial of unemployment benefits holding that he voluntarily resigned his job with a local government entity, without good cause. The Administrative Law Judge overruled the denial of benefits, rendering these findings and a decision:

The undisputed credible evidence establishes that the claimant left employment voluntarily . . . after being notified . . . that he was on probation, because he felt bullied, harassed and set up by his supervisor. I credit the claimant’s credible sworn testimony that his supervisor’s repeated criticism and scolding of him in a raised voice made him feel bullied and harassed, especially in the presence of other employees. I further credit the claimant’s credible sworn testimony that the supervisor’s actions including pointing and reprimanding him, consisted of the word “stupid”, and other language which embarrassed the claimant and that the claimant believed he was being ridiculed by the supervisor. An employee is not obligated to subject himself to such behavior. Given that the claimant had complained to the employer about the supervisor’s behavior just two months earlier, and that the supervisor’s mistreatment not only continued, but escalated, I conclude that the claimant had good cause within the meaning of the unemployment insurance Law to quit when he did. Additionally, while disagreeing with a reprimand or criticism about work performance may not always constitute good cause to quit, receiving reprimands in the presence of one’s co-workers may be. . . . Under the circumstances herein, the supervisor’s treatment of the claimant exceeded the bounds of propriety, with the result that the claimant had good cause to quit. His unemployment ended under nondisqualifying conditions.

Other Decisions

Attorney Williams relied upon previous decisions by the full Appeal Board holding that disrespectful and bullying-type behaviors that exceed the bounds of propriety (that appears to be the key phrase) may constitute good cause to voluntarily leave a job and thus not disqualify someone from receiving unemployment benefits. They may be accessed at the Unemployment Insurance Appeal Board website:

  • Appeal Board No. 571514 (July 3, 2013)
  • Appeal Board No. 559667 (February 28, 2012)
  • Appeal Board No. 558223 (January 25, 2012)
  • Appeal Board No. 549810 (September 10, 2010)

Jim added in an e-mail that potential New York claimants who may fit this scenario “are advised to take steps to try and save their jobs prior to quitting.  They will want to be able to show to the Department of Labor and to an ALJ that they took steps to try to change the situation – complaining to management, human resources, etc. – before quitting.”

Using These Decisions

The reasoning in these decisions is limited to unemployment benefits cases. Furthermore, the holdings of these cases are not binding upon unemployment benefits claims in other states. However, they can be brought to the attention of unemployment insurance agencies elsewhere as persuasive precedent.

In addition, this serves as an important lesson to those who may have been initially denied unemployment benefits after leaving a job due to bullying behaviors. It is not uncommon for initial denials to be reversed on appeal, and these cases provide genuine reason for optimism in situations involving abusive work environments.

This article originally appeared on Minding the Workplace on August 13, 2013.  Reposted with permission. 

About the Author: David Yamada is a tenured Professor of Law and Director of the New Workplace Institute at Suffolk University Law School in Boston.  He is an internationally recognized authority on the legal aspects of workplace bullying, and he is author of model anti-bullying legislation — dubbed the Healthy Workplace Bill — that has become the template for law reform efforts across the country.  In addition to teaching at Suffolk, he holds numerous leadership positions in non-profit and policy advocacy organizations.

 


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Unemployment: Why Won’t Congress Talk About It!?

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Change to WinAn interesting look at the unemployment rate. “What is currently a temporary long-term unemployment problem runs the risk of morphing into a permanent and costly increase in the unemployment rate” unless Congress takes action to create jobs. 

Why the Unemployment Rate Is So High – New York Times

Unemployment claims have increased slightly. “The Labor Department says applications rose 4,000 to a seasonally adjusted 371,000, the most in five weeks.”

Unemployment claims rise slightly in latest week – USA Today

“We need to avoid a lost generation of young people who will be playing economic catch-up their whole lives. We cannot stop pressing our leaders to help struggling poor and middle-class Americans.”

Crowdsourcing our economic recovery – CNN 

Even though the economy is improving, we need to do more to ensure the long term unemployed get back on their feet. Long term unemployment makes it harder and harder to provide for one’s family, and causes dramatic increases in mental illness. It’s time Washington gets busy putting people back to work. 

Long-Term Unemployed Winning Jobs Or Giving Up? – Huffington Post

This article was originally posted by ChangeToWin on January 11, 2013. Reprinted with Permission.

About the Author: Change to Win is an organization created by over 5.5 million workers – if corporations can join together to hire an army of lobbyists, working and middle class Americans must also band together and restore balance by making sure we have a strong voice and a seat at the table again.

(Colleen Gartner is an intern at Workplace Fairness.)


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Corporate Profits Hit Record High While Worker Wages Hit Record Low

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A constant conservative charge against President Obama is that he is inherently anti-business. However, businesses keep defying the storyline by making larger and larger profits, rebounding nicely out of the Great Recession.

In the third quarter of this year, “corporate earnings were $1.75 trillion, up 18.6% from a year ago.” Corporations are currently making more as a percentage of the economy than they ever have since such records were kept. But at the same time, wages as a percentage of the economy are at an all-time low, as this chart shows. (The red line is corporate profits; the blue line is private sector wages.):

 

Corporations made a record $824 billion in profits last year as well, while the stock market has had one of its best performances since 1900 while Obama has been in office.

Meanwhile, workers are getting the short end of the stick. As CNN Money explained, “a separate government reading shows that total wages have now fallen to a record low of 43.5% of GDP. Until 1975, wages almost always accounted for at least half of GDP, and had been as high as 49% as recently as early 2001.”

This post was originally posted on Think Progress on December 3, 2012. Reprinted with Permission.

About the Author: Pat Garofalo is the Economic Policy Editor for ThinkProgress.org at the Center for American Progress Action Fund. Pat’s work has also appeared in The Nation, U.S. News & World Report, The Guardian, the Washington Examiner, and In These Times. He has been a guest on MSNBC and Al-Jazeera television, as well as many radio shows. Pat graduated from Brandeis University, where he was the editor-in-chief of The Brandeis Hoot, Brandeis’ community newspaper, and worked for the International Center for Ethics, Justice, and Public Life.


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