Lots of people are trying to understand how to access unemployment insurance in CA. Now there are Fed dollars available starting 4/28 in California (known as “Pandemic Unemployment Assistance” or PUA). This is different from state unemployment insurance (UI) & is in many ways a weaker form of protection.
Understanding why is complicated, but important: Unemployment Insurance is an employer-funded program. Businesses pay insurance premiums into a state and federal fund to cover a portion of workers’ wages when they lose their job through no fault of their own (like with this COVID-19pandemic). On Jan 1, 2020 AB5 went into effect. This law requires many gig companies to treat their workers like employees for the purpose of state Unemployment Insurance. Workers fought tirelessly to get this bill passed.
This means that companies like Uber & Lyftshould be paying into the Unemployment Insurance fund AND gig workers who are out of work because of COVID-19 should have access to benefits like any other worker.
Federal vs state unemployment insurance
However, these companies have (1) failed to pay their required insurance premiums (thus cheating the system to save money), (2) failed to report wage data to the state of California (making it hard for a worker to establish their wages), and, like they have in other states, (3) resisted reimbursing California for the hundreds of millions of dollars they owe in unemployment insurance premiums.
If workers were to collect benefits now, law-abiding businesses will be picking up the tab, since the state pays workers from a single fund that all employers contribute into. California also knows that companies like Uber & Lyft will fight paying into the system in the short-term.
So, when the federal Pandemic Unemployment Assistance (PUA) program was created that could (possibly) offer similar benefits to workers, it would seem reasonable to make sure workers are paid from that program – especially when state officials know that Uber & Lyft have refused to live up to their obligations under the law.
But, the PUA can be worse for some workers and less protective compared to state law.
Here are four concerns we have about those weaknesses that we will be tracking and working to get in front of the administration:
PUA
CA state unemployment insurance
So, what does all of this mean for gig workers in California?
If you haven’t yet, go to the EDD site and apply for traditional Unemployment Insurance. If you get a letter saying you have $0 in reported wages, follow these directions: https://legalaidatwork.org/wp-content/uploads/2020/04/How-To_Wages-UI_Legal-Aid_Final-2.pdf?fbclid=IwAR3q6nB7SnNjbXedVQ1mqepfr7JvyoS9hZueZ-idlIS3b05ej3pIEBzSKIo. You are eligible for these state benefits.
If you get a denial, appeal it.
Once the PUA funds are available, likely on April 28th, workers can apply through the same website they submitted their unemployment application. However, they should be aware of some of the drawbacks and should work with GWR to demand that worker’s claims be treated fairly.
EDD is saying that funds from PUA will be available between 24-48 hours after a worker applies.
Gig workers should monitor this situation.
