States Should Consider Using Coronavirus Relief Funds to Improve UI Solvency
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 number of states [...]
Business Coalition Raises Concerns with California COVID Presumption
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 issued by Governor Newsom [...]
States Have Until September 10th to Apply for Federal Grants for Supplemental Payments
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 2104. The President’s order [...]
President Trump’s Executive Order on UI Would be a Challenge to Implement
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 agreement and use state [...]
Business Representatives Ask Congress for Relief from Increasing Unemployment Taxes Due to COVID
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 and the federal government, [...]
President Trump Signs Legislation Providing Benefit Charging Relief for Reimbursing Employers
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 to their accounts for [...]