Question Re: Unemployment Benefits

[DURHAM D]

Earlier today on MSNBC a business owner (restaurant I think) said that his employees won't come back to work because they make more money on unemployment. How can this be?

I am retired but the unemployment benefits were based on your income and was a pretty small percentage of that. I realize one time disbursements have been awarded but as far as I know they will not continue.

What am I missing?

[Claustrum]

1. If the person normally make less than $600 a week

If the person normally make less than $600 a week, they get a portion of that $600 dollars + the $600 emergency COVID money, thus making more than they normally do. But that's only for people that normally makes less than 600 dollars a week (eg. part time people, under 12 dollars an hour people).

[DURHAM D]

3. Is the $600 a week ongoing? nt

[Claustrum]

4. I think the cares act has it end at the end of June n/t

[stopbush]

12. Ends July 25.

[Demsrule86]

14. If they don't renew it... the economy will collapse just like in 08 because folks will begin to not

pay credit cards and mortgages...other loans. There will be no consumer money going into the economy...If you want to save the economy send $2000 to every American like Yang suggested...he said 1000 but more is needed.

[HotTeaBag]

2. If you work full-time at a $15.00 minimum wage

you would gross $600 per week.

If you file for unemployment you would get a percentage of that depending on your state's rules and then an additional $600. So, for some people it would be more than they make weekly.

In my case, I topped out at NY State's max for UI and with the additional $600, I am making about $200 less than what I was making before per week. But I was also paying $100 per week for transportation and at least $50 for food and other little stuff, so I am basically making what I was before.

[forthemiddle]

5. Indiana unemployment is usually $390.00 a week

But when you add the emergency Federal benefits of $600.00, you can make up to $990.00 a week. Everyone collecting UI gets the full amount, regardless of how much they previously made. So anyone that makes less than $50,000 a year is actually making more on unemployment than they would make working. They can also defer taxes until the end of the year if they wish, so that’s even a bigger boost to their paycheck.

[DURHAM D]

6. Thank for the info. nt

[Yonnie3]

7. The extra $600 ends on July 31st.

When does the expanded COVID-19 unemployment insurance run out?

Tens of millions of people are out of work and filing for unemployment benefits because of COVID-19 — numbers that smash previous records. The CARES Act, passed by Congress and signed by President Donald Trump in March, authorized extra unemployment payments, increasing the amount of money, and broadening who qualifies. (The same bill also included a one-time $1,200 payment for many Americans. You can find more details on that here.)

The increased unemployment benefits have an expiration date — an extra $600 per week the act authorized ends on July 31. The expanded eligibility, to cover gig workers and self-employed people, runs until the end of the year. Figuring out what you are eligible for can be complicated, and depends on the state where you live.
<snip>

More at

https://www.marketplace.org/2020/05/07/when-does-the-expanded-covid-19-unemployment-insurance-run-out/

[Claustrum]

8. The question I have for the business owner is

The question I have for the business owner is to qualify for unemployment, you need to pledge that you are able to work but work is closed. If the business is back opened, the employee has to go back to work. They don't have the option to choose not to go back to work and still qualify for unemployment. It's only true if the business owner is hiring new people. I guess the business layoff the workers instead of furlough (and I don't know how it actual works). Is there a difference between layoff and furlough and how the person is rehired?

[DURHAM D]

15. I am now wondering if a small business owner is also getting

unemployment benefits and the $600 a week if they make less than $50K a year.

[Claustrum]

16. Personally, I think this is right-wing/fox noise talking point

Even if I earn less by going back to work (when it's safe of course), I will rather go back to work because of health assurance (employer pays 80% while I have to pay more (even with ACA subsidy) if I am unemployed). I also wouldn't want to find a new job in a few months. I rather hold onto whatever job I have than relying on the extra $600 dollars that will eventually end.

To be honest, this talking point is plain stupid and illogical.

[DURHAM D]

17. Unfortunately the "people won't go back to work

because of new benefits" is out there. I just want to be prepared to push back.

Disappointing to hear it on MSNBC with no qualifiers/push back.

[Voltaire2]

9. because they were being paid shit to begin with

and a temporary cares act provision raised their wageds to just barely above 'shit' level.

[Demsrule86]

10. There is extra unemployment right now...but if you are called back and don't go, you lose it

unless you have pre-existing conditions which make it dangerous for you or you don't have childcare. So this person is lying.

[Claustrum]

13. Does being layoff or furlough affect this?

Isn't layoff mean that you are not expected to go back to work while furlough does?

[MoonlitKnight]

11. More due to those employees not feeling safe

But easier to blame on unemployment insurance payments.

They could report that they have recalled the workers. And the workers should call OSHA and a lawyer if they are expected to work in unsafe conditions.