COVID-19 Information about Lost Wage Assistance, change to certification form and fraud changes

The Employment Development Department (EDD) has issued information about Lost Wage Assistance (LWA), change to certification form and fraud reporting.  LWA is the temporary $300 per week benefit pursuant to presidential executive order.  EDD is paying LWA benefits based on the order in which EDD received certification forms for Unemployment Insurance or Pandemic Unemployment Assistance for the three week period July 26 to August 15.  People who have certified for those weeks that their full or partial unemployment is because of COVID-19 will receive LWA payments first.  Claimants must also have a weekly benefit award of at least $100 per week to be eligible for LWA.

Claimants who submitted their certification for all three of those weeks at the same time will receive one lump sum check of $900.  Claimants who did not submit their certification for all three of those weeks at the same time will have their payments split in two depending on when certifications for those three weeks was submitted.

Starting September 15, EDD will start accepting self-attestations for claimants who had not yet verified that their full or partial unemployment was because of COVID-19 (phase 2).  EDD will be sending email, texts or mailed notices advising claimants to complete the self-attestation online through their UI Online account or to mail a paper form.

After phase 1 and phase 2 payments are made, EDD will distribute two more weeks of LWA payments.  More information will be coming about when to expect these additional two weeks of benefits.  California has requested a 6th week of LWA benefits contingent on availability of federal funds.  EDD will issue additional information if this is approved.

EDD has issued a new certification form for people receiving Pandemic Unemployment Assistance (PUA).  The new form requires PUA recipients to attest each week that they are unemployed as a direct result of COVID-19.

EDD will no longer automatically backdate new PUA claims because of fraud concerns.  To backdate a PUA claim, claimants can submit an online inquiry through AskEDD, select Unemployment Insurance, the claims question subcategory, and then the topic backdate the effective date of my claim due to COVID-19.  Claimants can also speak to a representative by calling 833-978-2511 or other numbers listed on the Contact EDD page.

People who are concerned that fraud is occurring on their EDD account can send any fraudulent documents to EDD investigators at P.O. Box 826880, MIC 43, Sacramento, CA 94280-0225.  (EDD News Release 20-46, September 10, 2020.)

COVID-19 PUA implementation and stimulus payments for undocumented persons

Governor Newsom has issued an Executive Order and press release regarding implementation of Pandemic Unemployment Assistance (PUA) and state stimulus payment for undocumented workers.  PUA will provide benefits for persons ineligible for regular unemployment insurance, including independent contractors, persons who are self-employed, gig workers, and persons who do not have a sufficient employment history to be eligible for regular Unemployment Insurnace, who are unemployed or partially unemployed because of COVID-19.  The PUA program will begin in California on April 28, 2020.  Benefits will be issued within 24-48 hours.

The Employment Development Department (EDD) will launch a new call center that will be open 7 days per week from 8:00 am to 8:00 pm.  EDD will also expedite access to the Work Share program to avert layoffs.

Governor Newsom also announced state funded stimulus payments for undocumented persons in California of $500 per person and a maximum $1,000 per household beginning in May. These funds will be disbersed through regional nonprofit organizations.

Governor Newsom also reiterated that COVID-19 testing, evaluation and treatment is considered emergency services under Medi-Cal, regardless of where they are received.  This means all Medi-Cal beneficiaries can receive COVID-19 treatment regardless of documentation status.     (Executive Order N-50-20 and Press Release, April 15, 2020.)

COVID-19 federal instructions for PEUC

The United States Department of Labor has issued instructions regarding the Pandemic Emergency Unemployment Compensation (PEUC) program.  PEUC provides up to 13 weeks of benefits for individuals who 1) have exhausted all rights to regular unemployment insurance under state or federal law for a benefit year that ended on or after July 1, 2019; 2) have no right to regular unemployment insurance for a week under any other state or federal unemployment insurance law, or to compensation under any other federal law; 3) are not receiving Canadian unemployment insurance; and 4) are able to work, available to work, and actively seeking work recognizing that states must provide flexibility if people are unable to search for work because of COVID-19.

An individual has exhausted regular unemployment insurance benefits when no payment of regular unemployment insurance may be made under state law because they have received all available benefits based on employment or wages during the base period, or the right to benefits has terminated because of the expiration of the benefit year for which rights existed.

An individual has no longer exhausted regular unemployment insurance when they can establish a valid new benefit year.  At each quarter change, states must check if the individual has earned enough wages establish a new benefit year in the State, establish a new benefit year in any other state, or establish a new benefit year if wages from one or more states are combined.  When the claimant qualifies for a new claim, the PEUC claim must stop.  If the individual remains unemployed and otherwise eligible, and has not used all of their 13 weeks of benefits, the PEUC claim can continue after the second regular claim is exhausted.

Benefits payable under PEUC are the same amount as a regular unemployment insurance claim.

The first possible week for which PEUC may be paid is the week of April 4, 2020.  PUEC is not payable for any week ending after December 31, 2020.

States must identify people potentially eligible for PEUC and give them written notice of their potential eligibility.  This includes people who have established a claim with a benefit year ending after July 1, 2019 and who have exhausted their claim or their benefit year has expired.

PEUC is payable in the same manner and amount to individuals filing interstate claims as for intrastate claims.  (Unemployment Insurance Program Letter No. 17-20, April 10, 2020.)

COVID-19 federal instructions for PUA

The United States Department of Labor has issued instructions regarding the Pandemic Unemployment Assistance (PUA) program.  PUA provides benefits to individuals not eligible for regular unemployment insurance or extended benefits under state or federal law, including people who have exhausted rights to such benefits.  Covered individuals include self-employed, persons seeking part-time employment, persons lacking sufficient work history, and persons who otherwise do not qualify for regular unemployment insurance or extended benefits under state or federal law.

Individuals lacking sufficient work history means they have a recent attachment to the work force, do not have sufficient wages in the last 18 months to establish a claim for regular unemployment insurance, and who because unemployed for one of the COVID-19 related reasons listed below. Self-employed individuals include independent contractors, gig economy workers, and workers for certain religious institutions.

PUA is not payable to persons who can telework with pay or who are receiving paid sick leave or other paid leave benefits.  Persons receiving paid sick leave or other paid leave in an amount less than their customary work may be eligible for PUA but their PUA benefit will be reduced by the amount received in sick leave or other paid leave.  Individuals teleworking for less then what they worked prior to COVID-19 are eligible for PUA but their PUA benefit will be reduced by the amount of their work income.

PUA provides up to 39 weeks of benefits for persons otherwise able and available for work except that they are unemployed, partially employed or unable or unavailable to work because of one of the following COVID-19 related reasons:

  • The individual has been diagnosed with COVID-19 or is experiencing symptoms of COVID-19 and is seeking a medical diagnosis;
  • A member of the individual’s household has been diagnosed with COVID-19;
  • The individual is providing care for a family member or a member of the individual’s household who has been diagnosed with COVID-19. An individual is providing care if it requires ongoing and constant attention that the ability to perform other work functions is severely limited;
  • A child or other person in the household for which the individual has primary caregiving responsibility is unable to attend school or another facility that is closed as a direct result of the COVID-19 public health emergency and such school or facility care is required for the individual to work. This includes an individual who could telework, but the provision of care to the child or other person requires such ongoing and constant attention that it is not possible for the individual to perform work at home;
  • The individual is unable to reach the place of employment because of a quarantine imposed as a direct result of the COVID-19 public health emergency. This includes inability to reach place of employment because doing so would violate a state or municipal travel restriction;
  • The individual is unable to reach the place of employment because the individual has been advised by a health care provider to self-quarantine due to concerns related to COVID-19. This includes an individual whose immune system is compromised by a serious health condition and has been advised by a health-care provider to self-quarantine because of greater than average risk of coronavirus infection.
  • The individual was scheduled to commence employment and does not have a job or is unable to reach the job as a direct result of the COVID-19 public health emergency;
  • The individual has become the breadwinner or major support for a household because the head of the household has died as a direct result of COVID-19.
  • The individual has to quit his or her job as a direct result of COVID-19;
  • The individual’s place of employment is closed as a direct result of the COVID-19 public health emergency.
  • Additional criteria established by the Secretary of Labor. The Secretary has determined that individuals who work as independent contractors with reportable income may qualify for PUA if they are unemployed, partially employed or unable or unavailable to work because COVID-19 has severely limited their ability to continue performing their customary work activities and as thereby forced the individual to suspend such activities. For example, a ridesharing service driver who is forced to suspend operations as a direct result of COVID-19 can be eligible for PUA.

Applicants must self-certify that they are able and available for work except for being unemployed, partially unemployed, or unable to work or unavailable for work because of one of the above categories.  States would consider that many of these qualifying circumstances are temporary.  For example, people exposed to COVID-19 may be able to return to work after a period of time, and a school is not considered closed because of COVID-19 after the date the school year was originally scheduled to end.

The benefit amount is computed based on a base period of the most recent tax year that has ended for the individual prior to the individual’s unemployment that was a direct result of the major disaster. Earnings for the base period will be the net income on the applicant’s tax return.  If the applicant did not file a tax return, they must provide documentation of wages earned. If the applicant cannot provide such documentation, the claim will be denied.  Regardless of the amount of wages earned, the minimum benefit payment is 50% of the average weekly payment for the state.

PUA benefits are payable starting January 27, 2020.  Benefits stop for any week ending after December 31, 2020.

States must verify that individuals do not have regular unemployment insurance eligibility before granting PUA.  If the individual is ineligible for regular unemployment insurance because there are insufficient covered wages or the individual has an active unemployment insurance claim with a definite or indefinite disqualification, then the state does not need to require the individual to file a regular unemployment insurance claim.  If the individual’s eligibility for regular unemployment insurance is questionable, then the state must first require the individual to file a regular unemployment insurance claim, and if the individual is found ineligible then the state can consider PUA eligibility.  (Unemployment Insurance Program Letter No. 16-20, April 5, 2020.)

COVID-19 federal instructions for FPUC

The United States Department of Labor has issued instructions regarding the Federal Pandemic Unemployment Insurance Compensation (FPUC) program.  FPUC provides an additional $600 per week to individuals who are receiving regular unemployment insurance, including Unemployment Compensation for Federal Employees and Unemployment Compensation for Ex-Servicemembers.  In addition, FPUC is available to persons receiving Pandemic Emergency Unemployment Compensation, Pandemic Unemployment Assistance, Extended Benefits, Short-Term Compensation, Trade Readjustment Allowances, Disaster Unemployment Assistance and payments under the Self-Employment Assistance program.  FPUC is available until the week ending on July 31, 2020.

FPUC is not available to persons receiving extended benefits for persons in approved training who have exhausted benefits (in California that is persons receiving California Training Benefits).

FPUC benefits are disregarded for purposes of Medicaid and State Children’s Health Insurance Program.

States must notify potentially eligible individuals of their entitlement to FPUC.  That notice should include the beginning and end date of FPUC.

All terms and conditions of state or federal unemployment insurance that apply to claims for regular unemployment insurance apply to FPUC.

Individuals who are having their regular unemployment insurance intercepted to recover an overpayment are eligible for FPUC.

Child support obligations are deducted from FPUC in the same manner as they are deducted from regular unemployment insurance.

FPUC payments are taxable.  (Unemployment Insurance Program Letter No. 15-20, April 4, 2020.)

COVID-19 implementation of new UI programs

The Employment Development Department (EDD) has issued information about implementation of the Unemployment Insurance provisions of the CARES Act.

EDD is working on programming for the additional $600 per week payment.  That programming cannot be completed until states receive guidance from the United States Department of Labor.  EDD hopes that the payments can start the week of April 13, 2020.

New applications will continue to take about three weeks to process.

EDD is also waiting for final details about the 13-week extension benefits for people who exhaust current benefits before programming it.

EDD is working with California Department of Technology to develop a new application for the new Pandemic Unemployment Assistance program which will provide benefits to people who do not qualify for regular Unemployment Insurance, including self-employed persons.  EDD hopes the program will be similar to the Disaster Unemployment Assistance programs that were available for recent disasters.  (News Release 20-09, April 2, 2020.)