How self-employed, gig workers can get help during the coronavirus pandemic
For the self-employed, the promised good news of the federal stimulus was that it should be easier now to get unemployment benefits in California and the rest of the country. But implementing the program has proven to be chaotic and confusing.
In California, the unemployment system is overwhelmed with an unprecedented number of jobless claims – 2.4 million as of Wednesday – making it particularly difficult for those who have not previously sought benefits, and the state itself, to get answers or clarity.
“People just can’t get through,” said Katie Vlietstra, vice president for government affairs and public relations at the National Association for the Self-Employed. “And even if you do get someone on the line in California, they’re not always sure what to do to process the benefit.”
California has an estimated 2 million self-employed workers and 3.4 million part-time workers newly eligible for benefits, according to data compiled by the office of Sen. Dianne Feinstein, D-California.
They can qualify for state benefits, which can go as high as $450 a week, as well as an extra $600 a week through the end of the July, thanks to the federal $2.2 trillion economic aid plan.
Nationally, though, the U.S. Labor Department issued guidelines for implementing the law only on Sunday, and they’ve been harshly criticized as confusing.
“Gig economy workers could get coverage but only if they are ‘forced to suspend operations’ because of COVID-19, potentially leaving those who could still turn on their apps – even if they can’t find work – out of luck,” said Andrew Stettner, senior fellow at the Century Fund, a research organization.
Lori Erwin, 61, of Oakdale, owner/operator of a housekeeping service, feels the pain.
“When I heard that for the first time the government is offering unemployment to my group of workers I was so happy. I immediately went online and registered and applied for unemployment,” she recalled.
Erwin was asked if she was willing to work during the downturn. She said yes. Then she was asked if she was willing to give up her business. She said no, since all her customers intend to have her back to clean their homes as soon as they can.
She said was denied benefits, and thinks that answer disqualified her.
“I don’t think that the government wants all of us house cleaners, nails or hair dressers, gig workers, handymen, etc. to forfeit our business and start over,” she said.
Erwin is trying to contact EDD to get some answers. So far she’s gotten no response.
California officials are trying to sift through federal guidelines, including those issued Sunday night. They have to build a new program called Pandemic Unemployment Assistance to handle the federal change, which takes time and precision.
Adding to the confusion is a California law that went into effect Jan. 1, which required many businesses to treat independent contractors, including gig workers, as employees. That meant the employer paid into the state’s unemployment insurance program.
If one of these workers was laid off, whether or not they were considered an employee by the business, they could then collect benefits.
Because of this possibility, the Employment Development Department, which manages the state’s unemployment insurance program, encouraged uncertain workers to file for a regular state benefit.
If they then heard from the agency that it did not have the wages in the system the contractor thought should be there, that claimant would then get instructions on how to provide proof — and possibly benefits.
The federal law enacted March 27 goes further, permitting self-employed workers to get benefits even if their employers have not contributed to the system.
The new federal Pandemic Unemployment Assistance program will provide up to 39 weeks of benefits and covers people who are self-employed, seeking part-time employment, or otherwise would not qualify for regular unemployment benefits under state or federal law.
The state employment agency provides instructional videos and says it will respond to questions online and on the phone, but people are finding it difficult to get through. While websites try to respond most hours of the day, phone lines are open only from 8 a.m. to noon.
Gov. Gavin Newsom said hundreds of new staff members have been added, and the goal is to provide benefits within three weeks, the state’s usual timeframe.
And, he said, “to the extent someone’s open just four hours a day for critical services, I’ll have to learn more about that.”
Department spokesman Barry White urged patience. The agency, he said, “is redirecting hundreds of staff from within the department and state government with (unemployment insurance) processing experience, including recent retirees.
“We’re also redirecting hundreds more staff to assist us in processing those claims that always take a little longer to process, including those where information we get from the worker doesn’t match our wage records, or we cannot verify the worker’s identity.”
Sacramento Bee reporter Hannah Wiley contributed to this story.
This story was originally published April 9, 2020 at 2:11 PM with the headline "How self-employed, gig workers can get help during the coronavirus pandemic."
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