Coronavirus Changes Unemployment Insurance Benefits for the Short Term

Millions of Americans are applying for unemployment benefits. In Kansas, where SkillPath is located, unemployment claims increased 600 percent in one week, after the Kansas City metro implemented strict restrictions that have limited gatherings in many places to 10 or fewer people, as well as closed restaurants and non-essential businesses like retail. To put it into perspective, Kansas reported historically low 3.1 percent unemployment in January 2020 – and added more than 7,000 private sector jobs that month.

On social media, a close friend who works at a popular bar and grill in Lenexa, Kan., shared that she waited on hold for three hours to file her unemployment. “If anyone is wondering when we will get paid, the unemployment office said there were so many requests, it has overloaded the system,” she said. “I guess we will get paid when we get paid.”

My friend's frustration and worry mirrors those of many newly unemployed people who have never applied for benefits before. They don't know what they are qualify for or even how to apply. To navigate the process, here are some things you should know about making unemployment claims and how the coronavirus has changed unemployment.
 

Am I eligible for unemployment insurance?

The U.S. Department of Labor's unemployment insurance is a joint state-federal program that provides cash benefits to eligible workers. Each state administers a separate unemployment insurance program, but all states follow the same guidelines established by federal law. Typically, you will qualify if you:

• Are unemployed through no fault of your own. In most states, this means you separated from your last job due to a lack of available work.
• Meet work and wage requirements, such as time worked during an established “base period.” In most states, this is usually the first four out of the last five completed calendar quarters before the time that your claim is filed.
• Meet any additional state requirements. Find details of your own state’s program.

The federal government is allowing new options for states to amend their laws to provide unemployment insurance benefits related to COVID-19, such as when:

• An employer temporarily ceases operations due to COVID-19, preventing employees from coming to work
• An individual is quarantined with the expectation of returning to work after the quarantine is over
• An individual leaves employment due to a risk of exposure or infection or to care for a family member.

In addition, federal law does not require an employee to quit in order to receive benefits due to the impact of COVID-19.
 

How do I apply for unemployment insurance benefits?

To receive benefits, file a claim with the unemployment insurance program in the state where you worked as soon as you become unemployed.

If you worked in a state other than the one where you now live or if you worked in multiple states, the state unemployment insurance agency where you now live can provide information about how to file your claim with other states.

When you file a claim, you will be asked for information, such as addresses and dates of your former employment. It generally takes two to three weeks after you file your claim to receive your first benefit check.
 

How is the CARES Act changing unemployment?

The Coronavirus Relief Act (CARES) is temporarily changing how unemployment insurance works. Unemployed workers will receive an additional $600 per week on top of their state benefits for four months.

Unemployment benefits will extend to workers who are furloughed, but not fired, or who are quarantined but expect to go back to work.

Because unemployment is funded by employer payroll taxes, it usually does not cover self-employed or freelance workers. However, both freelance and gig workers fall under the “Pandemic Unemployment Assistance fund” in the CARES Act. These workers will also qualify for the extra $600 per week, as well as any other extended benefits available in the state.