What the federal stimulus bill means for gig workers
Published Wednesday, April 8, 2020
unemployment, stimulus checks, and what we still need to fight for
Want to know what the federal stimulus bill means for gig workers during this crisis and how unemployment will work under the new law? Read on to learn about the CARES Act and what options may be available to you once it’s fully implemented in your state.
Then, sign on to our demands for sick pay, hazard pay, safety standards, and compensation for all gig workers who have lost income due to the crisis — because there’s a long way to go in making sure essential workers get the essential protections we need.
Quick key takeaways:
The CARES Act does two separate things that are relevant to gig workers: provides stimulus checks to most workers (a single payment of up to $1200 per worker & $500 for each qualifying dependent), AND opens up unemployment to make it available to gig workers.
The way this new unemployment option works is by setting up a new program called “Pandemic Unemployment Assistance” (PUA), which is for gig workers & others who can’t usually access unemployment.
PUA will be administered by each state — so if you want to apply to it, you’ll access it through your state’s unemployment agency. But most states haven’t set up the system to administer this special form of unemployment yet, so you may not be able to apply yet. (Many states are saying they expect to have it set up by mid-April.)
PUA is designed to cover workers who have lost work as a result of the crisis for a variety of reasons — including those who have COVID (or COVID symptoms), are immunocompromised and need to self-quarantine, or need to take care of children whose schools have closed.
The federal government is still working on releasing guidelines about PUA, and each state will be providing guidance to workers about how to access it. Keep an eye on your state’s unemployment website to get info about when it will be available to you & how to apply.
What does the federal CARES Act mean for gig workers?
The CARES Act, passed on Friday 3/27, takes some important steps that provide income assistance for gig workers who have been impacted by the COVID crisis.
There are two separate pieces of the CARES Act that might be important for you:
Providing stimulus checks of up to $1200 for most workers.
Expanding unemployment: unemployment benefits will come with extra $ and will open up to more workers, including independent contractors who aren’t typically eligible.
So, what’s the story with those stimulus checks?
The stimulus checks are a totally separate thing from unemployment — they will be sent to workers regardless of whether the COVID crisis has caused you to lose work or impacted your income.
For the most part, stimulus checks will be distributed based on info the IRS has from your tax returns. If you filed this year or last year, and your direct deposit info is up to date, you should get a payment.
Stimulus checks will be up to $1200 for most workers, plus $500 per dependent. More info on that calculation at the IRS website here.
If you haven’t filed this year or last year, you can still file this year’s taxes by July 15 in order to get your info in the system so you get a check. Info on how to file your taxes is at the IRS website here.
And how does the CARES Act affect unemployment?
The CARES Act does three different things that strengthen unemployment:
For conventional employees: Extends regular unemployment by 13 weeks, and makes it easier to access.
For gig workers & others who can’t usually access unemployment: Creates “Pandemic Unemployment Assistance” (PUA), a new program specially designed for independent contractors & others who are left out of traditional unemployment.
For both: Adds an extra $600 per week on top of your unemployment benefit, whether it’s traditional unemployment or PUA.
What kinds of situations would qualify me for Pandemic Unemployment Assistance (PUA)?
The general idea is that it’s meant to cover income for those who can’t work (or can’t work as much) due to the crisis. Right now, we don’t know all the situations that may qualify you for PUA, because each state actually has to set up this program through their unemployment agency, and we may see new guidelines in the coming weeks about who can access PUA. A few (not all) of the specific situations that we know will be covered & are listed in the bill:
If you’re diagnosed with COVID, or have symptoms & are seeking diagnosis
If a member of your household has COVID
If you’ve been instructed by a doctor to self-quarantine due to exposure to COVID or because you’re at high risk for contracting COVID
If you need to take care of your child because their school was shut down
One thing that (unfortunately) isn’t clear yet: how this will work for gig workers who have lost income due to lower demand during the crisis. The rules as they were written aren’t really tailored to gig workers — but we’re likely to see more guidance in the coming weeks, and states might have the ability to be flexible about who they’re covering. We need to keep an eye on guidance coming out from state unemployment agencies, and make sure all the situations gig workers are dealing with right now are covered.
Another important note: unemployment (including PUA) isn’t available for immigrant workers who don’t have work authorization in the US. This is a big problem for many workers, including gig workers — and we will continue to advocate for income assistance for ALL gig workers. (If that sounds like your situation, please email us at gig@workingwa.org so we can talk about it!)
What are the details on PUA: when can I apply, how long can it cover me for, and how much will it pay?
One important thing to know: even though the CARES Act has already passed, each state needs to set up the program through their unemployment agency. Most states don’t have the program set up yet, so you may not be able to apply yet. (Keep an eye on your state’s unemployment website to see where they’re at in the process — this article has a list of links to every state’s site & how to apply. Many states are saying they expect to have PUA systems set up by mid-April.)
Calculation of your PUA benefit will vary from state to state, just like regular unemployment does — but at minimum, PUA will be half of your state’s average unemployment benefit, plus you’ll get an extra $600/week through the end of July.
Even if you can’t apply until later, you can get retroactive pay. Your benefit through PUA can cover you as far back as February until the end of the year, and the extra $600/week on top of that can cover you from March 29 until the end of July — regardless of when you apply.
What about regular unemployment — is that an option for gig workers?
Right now, it’s hard for most gig workers to get regular unemployment, because companies don’t pay unemployment for independent contractors. But just because the company has classified you as a contractor doesn’t necessarily mean your state’s unemployment agency sees it that way. Even though the company has classified you as an independent contractor, your state may view your company as an employer for purposes of unemployment, and that could mean you’d be eligible to get regular unemployment. (Different states have different guidelines about who should get regular unemployment.)
Accessing regular unemployment may be complicated, because most states’ unemployment applications aren’t set up to handle claims from gig workers. Some states — like CA, WA, and NY — may have specific instructions for independent contractors who want to apply for regular unemployment. You should check your state’s unemployment website to see if they have any guidance for independent contractors.
What if I apply for unemployment & my application is denied?
If you apply for regular unemployment and your application is denied, it may be because your state doesn’t consider you eligible for regular unemployment, and they haven’t set up PUA yet. You can appeal that decision if you think you should be eligible for regular unemployment — for example, if you believe you should be classified as an “employee” for purposes of unemployment. (Look for info on how to do this at your state’s unemployment website) — and you can also wait and apply for PUA once your state has it set up.
We will continue to share info & resources as new developments are made…
Sign up at the link here to get on the list for updates.
If you have specific questions about your situation or your state, email us at gig@workingwa.org.
…and we also need to continue speaking up for more protections.
In addition to making sure unemployment assistance covers all gig workers, we’re calling for companies & states to protect workers and public health. The CARES Act is a step in the right direction — but there are a lot of questions left to be answered, and we need essential protections for all essential workers in the crisis.
There are three steps you can take right now to help make it happen:
Sign on to our demands for sick pay, hazard pay, and safety protections — then share to spread the word.
Make sure the public understands that gig companies aren’t providing sick pay that actually pays out so workers can stay home: check out our guide on apps’ sick pay policies, and then share.
Help us collect stories about how companies are failing to protect workers during this time — if you’ve applied for COVID aid / sick pay from a gig company or know someone who has, we’ve set up a form where you can report on what happened.