Some California unemployed workers will still receive payments after federal benefits are cut off
Not everyone now getting federally-funded unemployment benefits is going to suddenly be cut off after September 4.
Payments on the four federal unemployment benefit programs that expire on September 4 can still be issued for weeks of unemployment prior to that date, even if that processing comes after the deadline and if conditional payments have not already been issued.
And those who qualify for benefits from the Federal-State Extended Duration, or FED-ED program and have a balance of up to 13 weeks of benefits available can still collect payments. But not for long – the last week of unemployment for which FED-ED benefits can be paid is the week ending September 11.
Still, most recipients will feel the sting of the cutoff.
After the week of September 4, as many as 2 million Californians could suddenly lose payments that are now as high as $750 a week, the research group Century Foundation estimates.
Federal benefits ending
Gone will be the ability to get new payments from the Pandemic Unemployment Assistance program, created in March 2020 as the COVID-19 pandemic triggered a deep recession last spring.
The program provides benefits to eligible gig workers, independent contractors, small business owners and others who usually cannot qualify for unemployment.
▪ The additional $300 in federal funds added to all weekly benefits.
▪ The $100 added to benefits for qualifying people who have earned both regular pay through an employer as well as a minimum of $5,000 in self-employment income.
The state’s Employment Development Department, which manages the unemployment compensation program, is providing details on its website about other programs that people needing aid can tap.
But there are some ways qualified beneficiaries can continue to receive unemployment compensation. Among them:
FED-ED payments
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This program is available to those who have used all their regular benefits as well as their PEUC benefits. Because California’s unemployment rate has dropped below what the federal government considers the danger level, it’s been cut back.
About 41,000 were expected to lose the benefit earlier this month because the maximum of 20 weeks of benefits cut dropped to 13 weeks.
If they were still eligible for some sort of benefits, the EDD has been moving many of them to the separate PEUC program if possible.
EDD is making those shifts automatically, but after September 11, the FED- ED benefit ends.
Retroactive benefits
Federal law does allow people to still apply for PUA benefits until October 4. But they’d only be paid for eligible weeks through September 4.
Another potential for retroactive benefits: In July, EDD implemented the new federal Mixed Earner Unemployment Compensation program. It allows people who are self-employed but also work salaried jobs part-time to receive another $100 a week in unemployment payments.
For instance, if someone is a food server at a local restaurant 20 hours a week, but supplements their income by repairing cars, they could potentially qualify. As many as 350,000 Californians may have been eligible.
People can seek this benefit through September 6. EDD has set up a special phone line to help answer questions. People seeking this benefit might also look at https://mixedearners.org/about.
Claimants receiving PEUC, FED-ED or regular unemployment insurance can apply. Those getting PUA or training extension benefits cannot. Payments can be retroactive to December 27, 2020.
The benefit was created by legislation then-President Donald Trump signed into law last year. Congress and the president created the program after realizing that many added self-employment jobs to their regular jobs, yet still needed aid.
Regular unemployment benefits
This program will continue, but after September 4, it won’t include the additional $300 from Washington.
The state’s regular program will continue to pay up to 26 weeks of benefits over a 12-month period. Maximum payment will be $450 a week, and minimum will remain $40.
About 600,000 people are currently collecting regular unemployment benefits. Regular benefits are those paid to unemployed people who work for employers who pay unemployment insurance premiums to the state, and who lost their job or had their hours reduced through no fault of their own.
This story was originally published August 26, 2021 at 5:00 AM.
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