Unemployment Insurance

End of federal pandemic unemployment benefits and federal extension benefits

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Federal unemployment benefits because of the COVID-19 pandemic end on September 4, 2021.  The programs ending on September 4, 2021 are Pandemic Unemployment Assistance (PUA), Pandemic Unemployment Emergency Compensation (PEUC), Pandemic Unemployment Compensation, and Mixed Earner Unemployment Compensation (MEUC).  The Employment Development Department will accept application for PUA for 30 days thereafter for benefits for before September 4.  Any pending claims for these benefits will be processed after the September 4 deadline if the claimant is later determined eligible.

The 20-week FED-ED extension will also expire because California’s economic conditions no longer meet the threshold for FED-ED.  The 7-week FED-ED extension will end on August 8, 2021.  The 13-week FED-ED extension will likely end on September 4. FED-ED extensions will be recalculated to a maximum 13 weeks starting August 8, but likely will not be payable after September 4.

Full federal reimbursement for the Work Sharing program also expires on September 4.  Federal funding to support reimbursement for employers who do not contribute to the State Trust Fund also expires on September 4.  (EDD News Release 21-39, July 30, 2021.)

Mixed Earner Unemployment Compensation

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The Employment Development Department (EDD) began accepting applications for the Mixed Earner Unemployment Compensation (MEUC) on June 30, 2021.  MEUC pays an extra $100 per week in supplemental unemployment benefits to people who earned both regular wages and more than $5,000 in self-employment wages.

 

Starting June 30, EDD will begin sending text messages and emails to claimants who may qualify for MEUC.  Paper applications will be mailed to people who are not online.  Claimants will have until September 6, 2021 to apply for MEUC. (EDD News Release 21-38, June 25, 2021.)

Resuming work search requirement for Unemployment Insurance

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The Employment Development Department (EDD) is resuming the work search requirement for Unemployment Insurance starting July 11, 2021.  EDD will be sending notices to claimants to inform them that the work search requirement will be reinstated.

For Unemployment Insurance, reasonable efforts to search for suitable work will include preparing for job searches such as setting up an account on CalJOBS, expanding networks, applying for suitable work and participating in training.

For Pandemic Unemployment Assistance, the work search requirement can include rebuilding businesses, expanding networks, establishing accounts on platforms to advertise services, and participating in training.  Persons receiving Pandemic Unemployment Assistance who no longer want to continue self-employment, or were previously employed but not eligible for regular Unemployment Insurance benefits, can search for work like a regular Unemployment Insurance recipient.

If an employer furloughed or laid off workers during the pandemic, the Work Sharing Program can help bring these employees back at reduced hours. These employees can continue collecting the additional $300 per week in federal unemployment benefits, and a portion of their wages will be subsidized by the regular unemployment insurance benefits.  (EDD News Release 21-36, June 17, 2021.)

Change to unemployment insurance reapplication requirement

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The California Employment Development Department (EDD) will now automatically process benefits from claimants who have not earned wages in the last 18 months, regardless of the type of claim, without needing to reapply for benefits. These claimants will need to continue certifying for benefits, and EDD will notify them when the additional benefit weeks are processed.

Claimants who have earned wages in the last 18 months must still reapply for benefits, even if they currently have are on either a PEUC or FED-ED benefits extension. EDD will then establish a new regular claim or deliver extended federal benefits on their behalf. All claimants will be notified if they need to reapply. Claimants can go to UI online and attempt to “File New Claim” to find out if they need to reapply. The application will proceed if a new application is necessary. Claimants can also use the Unemployment Insurance Benefit Calculator to see if they must reapply.

EDD also stated that, while there currently is no job search requirement, the requirement will return soon. EDD has a job search toolbox that can assist with employment searches. (EDD News Release No. 21-33, May 27, 2021.)

Treatment of Pandemic Unemployment Compensation and other Unemployment Insurance for CalWORKs

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The California Department of Social Services (CDSS) has issued guidance regarding how Pandemic Unemployment Compensation (PUC) and other Unemployment Insurance programs are treated for purposes of CalWORKs.  PUC is the additional $300 per week in Unemployment Insurance benefits in the December, 2020 stimulus package.  For CalWORKs, PUC payments are now exempt for both applicants and recipients.  For CalFresh, PUC payments are exempt from consideration as income or resources for nine months following receipt.

Pandemic Unemployment Assistance (PUA), which is for self-employed workers and independent contractors, is considered income for CalWORKs applicants and recipients.  Pandemic Emergency Unemployment Compensation (PEUC), which is extension benefits after regular Unemployment Insurance or PUA expires, also is considered income for CalWORKs applicants and recipients.

FED-ED is an additional extension of Unemployment Insurance benefits during periods of high unemployment for people who have sufficient earnings.  FED-ED is considered unearned income.  FED-ED benefits are considered income for CalWORKs applicants and recipients.

Mixed Earners Unemployment Compensation (MEUC) is an additional $100 per week in Unemployment Insurance for individuals eligible for Unemployment Insurance and who have at least $5,000 in self-employment income.  MEUC will be considered unearned income when it is issued.  MEUC will be considered unearned income.  MEUC benefits will be considered income for CalWORKs applicants and recipients.

Refugee Cash Assistance, Entrant Cash Assistance and Trafficking and Crime Victims Assistance Program follow the same CalWORKs rules for PUC, PUA, PEUC, FED-ED and MEUC.  (ACL 21-22, February 26, 2021.)

Suspected Unemployment Insurance fraud and identity theft information

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The California Department of Social Services (CDSS) has provided guidance regarding reporting fraud or identity theft when it is suspected that someone else used their information to collect Unemployment Insurance benefits.  In cases where applicants or recipients state that Unemployment Insurance claims have been filed using personal identifying information without their knowledge or consent, counties should help households to report suspected Unemployment Insurance fraud and identity theft.  CDSS has provided a notice to inform clients of resources for reporting suspected identity theft or benefits fraud

In cases of identity theft, counties cannot require any proof such as a police report or documents from the Employment Development Department.  A signed affidavit is acceptable verification for resolving reporting discrepancies.  (ACWDL, January 29, 2021.)