SS+D COVID-19 Response Team: Temporary Pandemic Unemployment Assistance Program March 30, 2020
March 31, 2020 | Sebaly Shillito + Dyer
THE NUTS AND BOLTS OF THE CARES ACT: TEMPORARY PANDEMIC UNEMPLOYMENT ASSISTANCE PROGRAM.
The CARES Act creates a Temporary Pandemic Unemployment Assistance Program (“TPUAP”). The TPUAP essentially provides enhanced benefits for all workers eligible for unemployment. It also expands coverage to individuals not traditionally covered by unemployment, which will be addressed in a separate update. The following provides a high-level explanation of who is eligible and the benefits being provided:
Q: WHO IS ELIGIBLE FOR TPUAP PAYMENTS?
Individuals who are eligible for unemployment benefits will receive TPUAP payments in addition to their regular unemployment compensation under state law.
Q: IS THERE A WAITING PERIOD TO RECEIVE TPUAP PAYMENTS?
The traditional one week waiting period is waived, thus paying recipients as soon as they become unemployed.
Q: WHAT BENEFITS ARE BEING PROVIDED BY THE TPUAP?
Individuals will receive an additional $600 per week (even if it takes an employee above their pre-unemployment earnings level).
Q: HOW LONG WITH TPUAP PAYMENTS LAST?
Eligible individuals will receive payments through July 31, 2020.
Q: WHAT HAPPENS WHEN UNEMPLOYMENT BENEFITS EXPIRES?
If individuals remain unemployed after their state employment benefits are exhausted, the federal government will fund up to 13 weeks of additional unemployment benefits at a weekly rate of $600 during that 13-week period (up to December 31, 2020).
ABOUT THE SS+D COVID-19 RESPONSE TEAM
The SS+D COVID-19 Response Team was formed to provide clients, colleagues, and friends of the Firm updates for the foreseeable future on COVID-19 issues facing businesses, executives, and employees. Please let us know if there are any items/issues you would like for us to track or summarize.