Sen. Brown Joins Colleagues in Calling for Unemployment Insurance Fix
The senators are raising this issue after hearing from constituents who have been denied PUA benefits even though they had their hours reduced or have been temporarily laid off due to changes in how businesses are operating amid the COVID-19 pandemic.
"We believe workers who have their hours reduced or are temporarily laid off when their employer reduces business operations due to COVID-19 are covered under PUA, and that the
The senators continued, "Partial closures are very common for businesses like restaurants that are operating with limited indoor dining capacity, or only offering take-out services, and have resulted in many service workers working reduced hours or being temporarily laid off even though their employer remains open. The recent guidance directs states to deny PUA eligibility to workers who have been impacted by partial closures. This is of particular concern for workers who do not have sufficient qualifying earnings to be considered eligible for state unemployment, including workers who are newly hired."
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To: The Honorable Al Stewart, Acting Secretary of Labor,
Dear Acting Secretary Stewart:
We write to request that you review and consider revising guidance issued on
The Coronavirus Aid, Relief, and Economic Security (CARES) Act established PUA to ensure that workers who lose their jobs during the pandemic and are not traditionally eligible for unemployment insurance can receive needed support during COVID-19. At the beginning of the pandemic when this law was passed, a number of states and communities enacted restrictions forcing businesses to temporarily close. Since then, the economy has gradually reopened, but in many cases businesses have remained partially closed in order to comply with public health guidance like social distancing. These partial closures have kept many Americans out of work and in need of income support.
Partial closures are very common for businesses like restaurants that are operating with limited indoor dining capacity, or only offering take-out services, and have resulted in many service workers working reduced hours or being temporarily laid off even though their employer remains open. The recent guidance directs states to deny PUA eligibility to workers who have been impacted by partial closures. This is of particular concern for workers who do not have sufficient qualifying earnings to be considered eligible for state unemployment, including workers who are newly hired.
It is clear from the language of the CARES Act that PUA is intended to cover workers who are "unemployed, partially unemployed, or unable or unavailable to work", which would include workers affected by partial closures. Additionally, understanding that the impacts of COVID-19 on workers would likely shift throughout the pandemic,
We ask that the Department clarify that workers impacted by partial closures or their employer scaling back business operations are eligible for PUA, or use its authority under 2102(a)(3)(A)(ii)(I)(kk) of the CARES Act to ensure these workers are eligible. This clarification is vital so that these workers can make ends meet during the pandemic.
Thank you for your attention to this matter.
Footnote:
1/ Unemployment Insurance Program Letter (UIPL) 16-20 Change 4
See signatories here: https://www.brown.senate.gov/imo/media/doc/PUA%20partial%20closure%20letter.%20210217.pdf
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