4 CARES Act takeaways to help employers understand jobless benefits system

On March 27, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law, providing an estimated $2 trillion stimulus package to address the COVID-19 pandemic. Although the CARES Act has a number of employment-related provisions, a central piece of the legislation expands existing unemployment insurance programs, making far more individuals eligible and providing greater benefits than existing programs. Understanding the impact of the new unemployment insurance landscape and the options available will inform employers as they make critical decisions suited to their circumstances and workforce.

Background

The unemployment compensation system is a cooperative state and federal program, administered jointly by the U. S. Department of Labor (DOL) and each individual state. In granting expanded jobless benefits, the CARES Act takes the shared structure into account and authorizes the states to provide the additional benefits.

In early April, the DOL sent initial guidance about the new program terms, but the states were still waiting for final terms of agreement and detailed administrative guidance from the federal government, which are necessary before the new benefits can be granted. On April 5, the DOL provided additional guidance about the implementation of the Pandemic Unemployment Assistance (PUA) program.

1. More workers eligible for jobless benefits