Updates on Unemployment Benefits in California during the COVID-19

Amid the COVID-19 pandemic when thousands of people in the US have lost their jobs and struggling with their finances, unemployment benefits have been providing them a ray of hope.

The good news for the citizens of California is that the Employment Development Department (EDD) has extended the unemployment insurance benefits for an additional 20 weeks for people affected by COVID-19.

Californians will receive additional benefits as part of the Federal-State Extended Duration Benefits program (FED-ED) and will be available only during times of prolonged unemployment.

In the state of California, the rate of unemployment is currently 16.3 percent, compared to the national rate of 11.1 percent annually.

 

Earlier, the $600 Pandemic Unemployment Assistance (PUA) benefit was to end on July 25,2020. People would have been still eligible for the unemployment benefit through July 25 if they received their payment later.

 

How the Unemployment Benefit Got Extension?

The extension of unemployment benefits has been possible due to the signing of a new budget package by Californian Governor Gavin Newsom. This package will allow the state to receive additional unemployment funds from the federal government.

 

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People of California who hope to receive the extended benefits are required to qualify based on specific eligibility requirements. According to EDD, to be eligible for the additional unemployment benefit, an individual should have income during the four quarters or base period of their regular UI claim.

 

The claim needs to exceed 40 times the weekly unemployment benefit amount or 1.5 times their highest quarterly total wages earned during the base period.

 

Individuals who will claim the unemployment benefit should be able and available for work to maintain their regular unemployment benefits. Besides, claimants may need to accept various work options, including jobs where wages are less than what they earned in the past. 

 

The extension of additional unemployment benefits came into effect from July 1, 2020. The other benefits will help people in California to sustain as they may have already been running out of their current Pandemic Emergency Unemployment Compensation extension benefits that provided unemployment allowance for an additional 13 weeks. Individuals will qualify for the extension if they remain out of work or are working reduced hours. 

 

Currently, the EDD is checking the eligibility of people who are running out of the state’s pandemic benefits and file a FED-ED extension on their behalf. Subsequently, EDD will mail those individuals to notifying their eligibility, and they need to keep filling out the regular bi-weekly certifications that confirm their ability for the benefit.

 

Eligible individuals for the FED-ED extension will receive an additional $600 payment funded by the federal CARES Act through July 25, 2020.

 

Some Common Mistakes to Avoid When Certifying to Prevent Payment Delay

People’s claim to receive the extended unemployment benefits may delay if they do not answer EDD questions correctly or do not answer their calls. Here are some common examples:

 

§ Claimants mentioned as unwell and cannot work: The first question on a claimant’s certification form states if he/she was too sick or injured to work. It would help if you answered it considering your health and availability for work. You have to be healthy enough to be able to work every day of a week to receive unemployment benefits. Many people answer “yes” for the whole week, which disqualifies them for profits. However, they were not sick themselves; instead, they mentioned it because other people are getting sick due to COVID-19.

 

§ Healthy and Availability:  The second question in the certification form asks if the claimants had any reason other than sickness or injury that they could not do a full-time job every day in a week. Applicants have to be available for work to collect the benefit amount. The term “availability” refers to readiness and willingness to accept work despite the closure of businesses due to coronavirus. If you are ready for work and available, your answer to this question should be “no.” If a claimant is neither open nor willing to accept a job, he/she may not qualify for benefits, unless they have a good cause.

 

§ Unable to pick calls from the EDD: If EDD finds an eligibility issue on your certification, they may have to schedule an interview with you. You will receive a mail notifying about the date and time of the interview and sample questions that EDD might ask you. It would be best if you were prepared to receive a call during the scheduled time mentioned in the mail. The request will come from a government phone number and may display as restricted. An EDD representative will tell you the reason for calling, and let you know your customer account number. If you are unable to pick the call, it is likely to delay the process of receiving your unemployment benefits.

 

Before We Go

If you want to know more about unemployment insurance or various other types of insurance, contact us right away. In these uncertain times, enrolling in life, health, and personal can help you secure the financial future of you and your family.

 

Give us a call at our toll-free number 1-888-505-7988 or fill out the online contact form, and we will be glad to assist you.