Jul 28, 2020 3 min read

That weekly $600 unemployment benefit so many Americans had been relying upon during the pandemic disappeared last weekend, when individual states sent out final payments. Benefits were issued through the Federal Pandemic Unemployment Compensation program, which was established in March under the emergency CARES Act.

A replacement benefit is being discussed by the federal government, although, according to the Washington Post, the payments could be substantially reduced at first. The Post reported that Senate Republicans are expected to propose cutting that weekly benefit to $200, until states can implement a 70% wage replacement plan.

House Democrats, according to the Post, propose to maintain the $600 weekly benefit through January.

If the GOP plan is adopted, dislocated workers won’t be the only ones stressed. So will cabinet-level agencies in most, if not all, states – including Pennsylvania’s Department of Labor & Industry.

“There are lots of discussions in Washington,” said Jerry Oleksiak, the L&I secretary. “The House and Senate have plans, but the plans are radically different. We are watching and waiting and hoping there is a flat rate.”

Oleksiak and Susan Dickinson, unemployment compensation benefits policy director for L&I, focused nearly half of their weekly WebEx news conference Monday on what may transpire with a replacement benefit. Their department has been under siege since mid-March, when the coronavirus barged into Pennsylvania, transforming the state from one with a nearly historic level of employment to, within two weeks, one at a nearly historic level of unemployment.

L&I has since more than doubled its staff, is still bringing people on board and still playing catchup. The addition of a new stimulus package could require retooling of L&I’s computer systems.

“I don’t know where the conversation in Washington will land,” Oleksiak said. “If it’s $600 payments, that’s easy for us. If it’s a flat rate but different, that will take us a little more time to adjust. If it’s a percentage, it may take us months to go through claims.”

His department, the secretary pointed out, has dealt with three million claims over the past four months-plus.

Oleksiak said 93% of claimants have been paid or determined to be eligible. Some Pennsylvanians have complained that they are not receiving benefits due to them, but Dickinson said there are many reasons why some are not – including misinformation filed on initial claims, an applicant may be earning too much money to be eligible, or is simply not eligible.

The state has paid out $30.6 billion in UC benefits since March 15. Because of that massive outlay, Oleksiak said his department will “have to borrow from the federal government” to supply the state trust fund from which the benefits are paid.

Labor & Industry will have another virtual town hall – open to the public – at 1 p.m. Thursday. To participate online or by telephone, visit https://access.live/PAlabor or call 833-380-0719.