Pennsylvania Opts In for Federal Supplemental Unemployment

As we noted last week, President Trump signed an executive order on August 8, 2020 that would pay out-of-work Americans $400/week in supplemental unemployment benefits. The benefits were meant to replace the recently-expired $600/week in Federal Pandemic Unemployment Compensation provided by the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act. Under the president’s plan, $300 of the weekly benefit would come from federal disaster relief funds and the remaining $100 would be paid by the state.

In the days following the president’s executive order, it was unclear whether the $300/week in federal benefits would be given to unemployed residents of states that could not (or would not) contribute the remaining $100. Given the financial woes faced by the states, many of which are required by their own constitutions to have a balanced budget, this was a real concern. It now appears, however, that this $300/week in federal funding will be provided whether or not the states contribute.

Earlier this week, Pennsylvania’s Department of Labor & Industry (“L&I”) announced that the state will opt in to the federal funding for supplemental unemployment benefits. The $300/week in benefits will not be given to Pennsylvanians who receive less than $100/week in state unemployment benefits. L&I indicated that it is awaiting guidance from the federal government on how to apply for the funding, which is expected to last no more than five (5) weeks. L&I also stated that it is unclear on when the funding will reach claimants, as the money must be distributed through a different system rather than the existing unemployment compensation system.

Despite this development, there are many questions left unanswered. How long will it take for these benefits to reach unemployed Pennsylvanians? Will Congress reinstate FPUC? Employers and employees alike will need to wait for additional guidance and, hopefully, clarity. 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.