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Feds limit new 1099 unemployment insurance as Illinois problems persist

Posted in:

* Sun-Times with the background

The CARES Act extends temporary benefits for people who usually do not qualify for unemployment benefits: self-employed, independent contractors and sole proprietors. […]

If deemed eligible, these self-employed Illinois workers will get 39 weeks of enhanced benefits starting in May.

The Illinois Department of Employment Security has not yet opened an online portal for self-employed workers to apply for benefits.

* And this is from the Washington Post

In recent days, [US] Labor Secretary Eugene Scalia, who has expressed concerns about unemployment insurance being too generous, has used his department’s authority over new laws enacted by Congress to limit who qualifies for joblessness assistance and to make it easier for small businesses not to pay family leave benefits. The new rules make it more difficult for gig workers such as Uber and Lyft drivers to get benefits, while making it easier for some companies to avoid paying their workers coronavirus-related sick and family leave. […]

New Labor Department guidance says unemployment benefits apply to gig workers only if they are “forced to suspend operations,” which could dramatically limit options for those workers if their apps are still operating. Other workers also face a high hurdle to qualify for benefits.

* From the new federal rules

(U)nder the additional eligibility criterion established by the Secretary here, the driver may still qualify for [Pandemic Unemployment Assistance] benefits if he or she has been forced to suspend operations as a direct result of the COVID-19 public health emergency, such as if an emergency state or municipal order restricting movement makes continued operations unsustainable.

* Here’s what that means…


While the program will cover #gigeconomy workers, it only extends to those who are “forced to suspend operations” because of #COVID19, leaving those who could still turn their apps on—even if they can’t find work—in a grey area.

— AndrewStettner (@pelhamprog) April 6, 2020

That was not the intent of Congress.

* Michigan claimed it would be ready to process those claims today, but then its site crashed

The website for Michigan workers to apply for unemployment benefits is down. […]

The disruption comes only hours after the window for independent contractors and self-employed workers could start applying for benefits as part of a new source of federal funding.

Workers normally go to the Michigan Web Account Manager (MiWAM) when applying for benefits. The site first buckled under a surge of new claims at the end of March. The Michigan Governor has previously urged patience while the state has worked to get the site up and running.

At least Michigan had something in place for gig workers. Illinois does not have anything ready yet and the IDES site can’t handle unemployment applications from “traditional” workers as it is.

* From the governor’s office…

The U.S. Department of Labor took weeks to roll out stringent and confusing regulations around how to implement an entirely new program. The state of Illinois is working through those regulations now and is contracting with an outside firm to help us stand up the additional benefits for 1099 workers in the coming weeks, but it’s clear the Trump administration is working to limit who qualifies for benefits.

“The coming weeks.”

posted by Rich Miller
Monday, Apr 13, 20 @ 10:31 am

Comments

  1. One example of a profession that desperately needs this help is hairdressers

    Comment by Oak Parker Monday, Apr 13, 20 @ 10:35 am

  2. Congress needs to figure out how to work remotely and provide real oversight. They are essential workers, and they made need to take some risks to do their job.

    Comment by ChicagoVinny Monday, Apr 13, 20 @ 10:43 am

  3. So clear that often government doesn’t work because one party does everything in its power to make sure it doesn’t work.

    One ideologue can overrule bipartisan legislation that was signed into law by the president.

    The Scalia gift keeps on giving.

    Comment by Morty Monday, Apr 13, 20 @ 10:47 am

  4. ==One example of a profession that desperately needs this help is hairdressers==

    Indeed. When I can finally get a haircut, I’m planning to also pay for any missed haircuts.

    Comment by City Zen Monday, Apr 13, 20 @ 10:56 am

  5. == That was not the intent of Congress.==

    Well, it was not the intent of half of congress. The other half, I’m sure they’re fine with it.

    Comment by Lester Holt’s Mustache Monday, Apr 13, 20 @ 10:57 am

  6. The media needs to hold the IDES to a higher level of accountability. It may not be an easy story to tell, but specific numbers are missing from the coverage. How many apps in the pipeline? How many approved? How long is the delay compared to normal apps? Specifics and details would be nice.

    Comment by Southsider Monday, Apr 13, 20 @ 11:01 am

  7. =Eugene Scalia, who has expressed concerns about unemployment insurance being too generous=

    Because god forbid people should be able to eat and keep a roof over their heads.

    Comment by JoanP Monday, Apr 13, 20 @ 11:05 am

  8. As a retiree from IDHS and IDES who has numerous friends still working the front line in those agencies, I feel the need to brag on them. Even with the vast majority of IDHS offices closed, many of my former colleagues are working from home to provide benefits. However, my IDES friends are still working on site, in confined quarters with many others, for up to 12 hours a day to get unemployment benefits out. Have no idea how responsible or accountable upper management is, but the front line is not only holding their own feet to the fire–but walking in the fire. They should be praised and thanked.

    Comment by ragtopme Monday, Apr 13, 20 @ 11:11 am

  9. BTW —

    I hope these website issues convince IDES — and DoIT — that the way forward is open-source. Not closed-source, proprietary stuff.

    If the IDES website used normal, open-source web components, there’d be a fix in a matter of days, probably hours.

    What DoIT doesn’t realize is that open-source folks (like myself) want to help. But if your code is private — and the toolchain you use is proprietary — there’s no way to crowd-source for help.

    Comment by Mr. K. Monday, Apr 13, 20 @ 11:23 am

  10. ===Writing on Fox Business Network’s website on Monday, he warned that he does not want unemployed people to become addicted to government aid.===
    I’m sure it’s more like people are “addicted” to eating regularly.

    Comment by Da Big Bad Wolf Monday, Apr 13, 20 @ 11:23 am

  11. I’m unemployed and I’m addicted to government aid. There, I’ve said it. Social Security and Medicare, primarily. Millions of us are, in truth. And, Eugene, unless you are like the other 17 people in the last 80 years or so who have voluntarily rejected SSA and Medicare, you will be an ‘addict’ too.

    Comment by Sayitaintso Monday, Apr 13, 20 @ 11:33 am

  12. And hopefully these “1099 workers” along with their parents, other relatives, and friends remember the new soul of the GOP when it comes time to vote this November.

    I am fortunate to be in a financial position where a lot of GOP policies are actually good or at least not harmful to me in the short term but for the future of the country I no longer consider myself part of what is now the GOP and won’t be again until the zealots who have perverted the heart and soul of the party are gone. And I can no more understand the blue collar downstate people who are so enamored with current GOP aims and policies that are so detrimental to their current and future standard of living than I can understand meth addicts because both suffer terribly harmful addictions.

    Comment by former southerner Monday, Apr 13, 20 @ 11:36 am

  13. I have a small gift shop, run by my wife and I. We have been forced to close our doors due to the mandatory shut down of non-essential businesses. We do vendor fairs every weekend, and those have all been shut down. We have lost a great deal of money (At least for us). Our rent, utilities, insurance, and other necessary costs remain the same. Hopefully this program will provide some relief. I am now paying our bills from my retirement savings. We are looking forward to some help in the near future.

    Comment by Retired Educator Monday, Apr 13, 20 @ 11:39 am

  14. Retired Educator do you have a website for your gift shop? I might need some gifts. I come from a big family and it is always somebody’s birthday.

    Comment by Da Big Bad Wolf Monday, Apr 13, 20 @ 12:00 pm

  15. My friend is a massage therapist. She has lost all her income due to Covid 19. It’s terrible.
    I feel so bad for her.

    Comment by Honeybear Monday, Apr 13, 20 @ 12:03 pm

  16. Da Big Bad Wolf; Thank you for your concern, and kind offer. I am not sure this is the proper format to put the name of our business. I do not want to use this site for that purpose, plus I do not want to incur the ire of Mr. Miller.

    Comment by Retired Educator Monday, Apr 13, 20 @ 12:29 pm

  17. If it wasn’t Congress’ intent, isn’t there some way for Congress to pressure the Trump admin to change the regs. They were presumably written fast, couldn’t they be rewritten fast.

    Comment by Casssandra Monday, Apr 13, 20 @ 12:37 pm

  18. @ sayitaintso,

    If I remember correctly, isn’t Eugene the second generation of the Scalia family to earn their daily bread by being on a university or government payroll?

    His Fox News comments remind me of how my farming ancestors would describe certain hogs: the type of hogs who chase others away from the trough, to ensure they get the largest portion of the food.

    Comment by Lynn S. Monday, Apr 13, 20 @ 12:41 pm

  19. This President has done a good job of placing people in charge of agencies who have a disdain for the agencies they are leading.

    Comment by Demoralized Monday, Apr 13, 20 @ 12:58 pm

  20. This is what you get when the wolf guards the hen house. Scalia is simply a corporate lackey; he doesn’t even bother to hide his malintent.

    Comment by The 5th Deputy Gov. Monday, Apr 13, 20 @ 1:39 pm

  21. All small businesses in harms way; ie: the massage therapist, the gift shop owner, et. al. should be contacting their bank and making an application to the Paycheck Protection Program that is part of the federal coronavirus emergency package.

    They for certain qualify for the two and a half months of income protection (plus benefits), 25% of these funds can be used to pay utilities, rent, et. al.

    Have them apply NOW.

    Comment by Say What? Monday, Apr 13, 20 @ 1:45 pm

  22. Oh, and these “loans” are at 1% interest and will be forgiven if those businesses keep employees on the payroll (which is what the money allows to begin with).

    Comment by Say What? Monday, Apr 13, 20 @ 1:47 pm

  23. === - Say What? - Monday, Apr 13, 20 @ 1:47 pm:

    Oh, and these “loans” are at 1% interest and will be forgiven if those businesses keep employees on the payroll (which is what the money allows to begin with). ===

    Do you really think that many of these businesses are currently keeping these employees on payroll?

    Comment by Birdseed Monday, Apr 13, 20 @ 2:14 pm

  24. You can bring them back on the payroll when the money is deposited and have the loan forgiven if you keep them employed.

    Read the rules. This is an outright gift to employers with under 500 employees to keep people employed.

    Comment by Say What? Monday, Apr 13, 20 @ 2:25 pm

  25. Say What?; We applied for that loan last week. We have heard nothing back from our bank. I just sent an email to the loan officer asking about the status of the loan. I will keep the blog posted, as to the results.

    Comment by Retired Educator Monday, Apr 13, 20 @ 2:50 pm

  26. The not for profit that I run got their info in early, was approved a week ago Saturday and the deposit of $1 million plus hit our account on Friday. We are with a small regional bank that worked weekends et. al. to ensure their customers were taken care of ASAP.

    Some larger banks have been overwhelmed with applications. My sons bank in FL, for example, had over 16,000 applications. Even with that, his application was approved last Friday, and his deposit is due this Friday.

    My advice is to check with your bank daily to see where you are in the cue.

    Comment by Say What? Monday, Apr 13, 20 @ 2:56 pm

  27. ===check with your bank daily===

    Mine called me. I was impressed.

    Comment by Rich Miller Monday, Apr 13, 20 @ 4:07 pm

  28. Rich, rumor has it the bank calls you when they need a loan.

    Comment by Blue Dog Dem Monday, Apr 13, 20 @ 5:13 pm

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