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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May 9
Philadelphia City Council unanimously passes the POWER Act; thousands of federal worker layoffs at the Department of Interior expected; the University of Oregon student workers union reach a tentative agreement, ending 10-day strike
May 8
Court upholds DOL farmworker protections; Fifth Circuit rejects Amazon appeal; NJTransit navigates negotiations and potential strike.
May 7
U.S. Department of Labor announces termination of mental health and child care benefits for its employees; SEIU pursues challenge of NLRB's 2020 joint employer rule in the D.C. Circuit; Columbia University lays off 180 researchers
May 6
HHS canceled a scheduled bargaining session with the FDA's largest workers union; members of 1199SEIU voted out longtime union president George Gresham in rare leadership upset.
May 5
Unemployment rates for Black women go up under Trump; NLRB argues Amazon lacks standing to challenge captive audience meeting rule; Teamsters use Wilcox's reinstatement orders to argue against injunction.
May 4
In today’s news and commentary, DOL pauses the 2024 gig worker rule, a coalition of unions, cities, and nonprofits sues to stop DOGE, and the Chicago Teachers Union reaches a remarkable deal. On May 1, the Department of Labor announced it would pause enforcement of the Biden Administration’s independent contractor classification rule. Under the January […]