Are Extended Unemployment Benefits Back On?

One of the most widely-known portions of the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was the additional $600/week in federally-funded unemployment benefits known as Federal Pandemic Unemployment Compensation (“FPUC”). As partisan gridlock in negotiations over the future of FPUC, which expired on July 31, 2020, has not resulted in an extension of the program, President Trump stepped in over the weekend by signing an executive order regarding unemployment benefits.

Under the president’s executive order, certain individuals would receive additional unemployment benefits of $400/week, with 25% of that amount being provided by the state. There are, however, many questions about the president’s plan. For example, it is unclear whether residents of states that do not contribute will receive $300/week in additional benefits or nothing at all. It also remains to be seen if the executive order is subject to a constitutional challenge, as Congress generally exercises the “power of the purse.”

For the time being, employers will need to wait for guidance from the federal and state governments as to how this program will be implemented. We will be sure to keep you updated on the latest developments on this front. For questions about this or any other labor and employment issues, please do not hesitate to contact the attorneys at Hoffman & Hlavac.  To stay updated on this and the other key labor and employment law developments that affect your workplace, subscribe to our blog and follow us on social media.