Why Changing Unemployment Payments Could Take Months

published 30.07.2020 18:28

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Earlier this year, though, such a system was Democrats’ goal — in discussions with the Trump administration over an economic rescue package in March, Mr. Wyden and others pushed for an enhanced unemployment benefit that would replace 100 percent of workers’ wages.

The federal government would kick in significantly more support to bring the benefit up to 70 percent for workers in a low-benefit state like Arizona than in a high-benefit state like Washington.

Many states administering unemployment benefits are relying on archaic systems, which were quickly overwhelmed by the influx of claims.

On Oct. 5, it would be replaced by a formula that starts with the amount of state benefits a worker would normally receive for unemployment and then adds federal dollars to bring the total benefit to 70 percent of the worker’s former wages.

The $600 additional payment was selected as a compromise — it is the average gap between state unemployment benefits and a typical unemployed worker’s former pay.

by Tara Siegel from nytimes.com

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