Deanna Krokos is a student at Harvard Law School
ProPublica released a groundbreaking investigation tracing a new chapter of COVID-19-realted “enhanced unemployment” benefits: clawbacks. Several states are pursuing repayment of benefits disbursed under the federal “Pandemic Unemployment Assistance” (“PUA”) program, that aimed to provide unemployment funds to workers traditionally ineligible for state unemployment insurance. Now, states are auditing their program distribution and determining that as many as 1 in 5 PUA recipients were erroneously “overpaid.”
Though the state-administered PUA application processes themselves were marked with technological errors, which the DOL determined increases inaccuracies, all of the consequences seem to fall on workers. Workers waited weeks and months for their first check, as state systems were overrun, and now are expected to repay a lump-sum to correct an error that was nothing if not to be expected. The clawback requests are not trivial; states are requesting thousands of dollars, terming it a form of “debt” and threatening various collections practices. Of course, the entire purpose of these funds was to support workers and families in meeting monthly expenses, i.e. to be spent. Further, the payments are credited from an economic perspective with stimulating the economy, promoting consumer spending to support those essential, front-line jobs that did remain. Now, states are asking the same individuals who were specifically instructed to spend this money during a crisis, to quickly return it as though it were a bonus or a perk.
PUA’s originating legislation specifically forbids states from waiving overpayments, requiring these clawback attempts. House Democrats have challenged this, offering a revision in the HEROES Act, though many are losing hope that the bill will pass.
The New York Times reported on one troubling difference between the current COVID-19 “spike” and the initial wave this spring: front-line and essential workers are much less likely to receive hazard pay. Retail workers continue to risk their health to perform essential, in-person labor, but companies have not continued to acknowledge those risks through bonuses or wage increases. NYT ties this phenomenon to labor market forces; as enhanced unemployment benefits lapsed, workers are pressured to accept work even in unsafe conditions and without wage premia.
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August 17
The Canadian government ends a national flight attendants’ strike, and Illinois enacts laws preserving federal worker protections.
August 15
Columbia University quietly replaces graduate student union labor with non-union adjunct workers; the DC Circuit Court lifts the preliminary injunction on CFPB firings; and Grubhub to pay $24.75M to settle California driver class action.
August 14
Judge Pechman denies the Trump Administration’s motion to dismiss claims brought by unions representing TSA employees; the Trump Administration continues efforts to strip federal employees of collective bargaining rights; and the National Association of Agriculture Employees seeks legal relief after the USDA stopped recognizing the union.
August 13
The United Auto Workers (UAW) seek to oust President Shawn Fain ahead of next year’s election; Columbia University files an unfair labor practice (ULP) charge against the Student Workers of Columbia-United Auto Workers for failing to bargain in “good faith”; and the Environmental Protection Agency (EPA) terminates its collective bargaining agreement with four unions representing its employees.
August 12
Trump nominates new BLS commissioner; municipal taxpayers' suit against teachers' union advances; antitrust suit involving sheepherders survives motion to dismiss
August 11
Updates on two-step FLSA certification, Mamdani's $30 minimum wage proposal, dangers of "bossware."