The COVID-19 recession has significantly impacted the solvency of state UI Trust Fund Accounts. A snapshot of the status of accounts as of September 16, 2020 shows that 21 states have already requested authorization to obtain loans from the Federal Unemployment Account because state unemployment trust fund balances have been or will be exhausted. (see below) [...]
A business led coalition is raising concerns with legislation proposed in California that would largely incorporate the terms of Governor Newsom’s executive order that created a COVID-19 presumption. The letter from the group attached addresses the provisions in SB 1159, which includes three Sections. SECTION 1 codifies the policy contained in Executive Order N-62-20, which was [...]
On August 13th FEMA released the notice to states enabling applications for grants for lost wages supplement payment assistance (LWA). The deadline for application is September 10, 2020. It does not appear that Congress will come to an agreement on a replacement for the $600 in supplemental UI payments provided under the CARES Act in Section [...]
On Saturday, August 8, 2020, President Trump signed a series of Executive Orders (EOs), including an EO to address the extension of additional unemployment compensation payments. The EO seeks to provide authority for an additional $400 per week through the end of the year under a new program that would be funded under a federal/state match [...]
Business representatives from state and national business associations by letter dated August 3, 2020 joined to ask Congress to provide unemployment tax relief from the dramatic increases in unemployment taxes and costs to employers due to unemployment compensation paid because of the COVID-19 shut downs. The closing of businesses due to COVID-19 was made by Governors [...]
On August 3, 2020 President Trump signed the Protecting Nonprofits from Catastrophic Cash Flow Strain Act of 2020 (S 4209) into law. The Act was previously passed by unanimous consent in the US House or Representatives. The new law provides a much-needed fix to help reimbursing employers manage the required payments in lieu of contributions charged [...]
In a letter dated July 24, 2020, UWC urged Congress to address UI Solvency issues with four specific provisions that should be enacted to reduce the tremendous financing burden on employers and state unemployment trust funds caused by COVID-19 closures. The request includes the following: Provide for a transfer of federal funds to state UI trust [...]
On July 21, 2020 the U.S. Department of Labor released Unemployment Insurance Program Letter No. 16-20 Change 2. The UIPL seeks to answer a number of questions posed by states in the administration of the Pandemic Unemployment Assistance (PUA) program and also addresses integrity issues that have been raised by the Office of Inspector General, employers, [...]
Attention is needed to Charging and Rates Many State UI agencies had difficulty managing the dramatic increases in unemployment compensation claims arising from lay-offs and the recession. Just as states are catching up with UI benefit payment issues, many are also having difficulty matching charges with employer accounts. The additional $600 payment required under Section 2104 [...]
On May 26, 2020 the US DOL Inspector General released an Alert Memorandum identifying serious problems in interpretation and administration of the Pandemic Unemployment Assistance (PUA) program created in the CARES Act. The primary concern identified is that US DOL’s interpretation that entitlement to PUA benefit payments may be based solely on a check the box [...]
