Unemployment benefit is creating problems

Published 6:00 pm Sunday, May 3, 2020

Some Louisianans receiving more in unemployment compensation than they were making on the job are facing a dilemma that is putting them on a spot. If they refuse to return to work, they may lose that higher compensation.

The extra funds are part of the $2.2 trillion CARES Act, a rescue package passed by Congress because of the coronavirus pandemic. Unemployed workers are receiving an additional $600 per week on top of the maximum $247 per week they can get from the state.

The Advocate said employers are also caught up in the dilemma. If they report that laid-off employees refuse to return to work, their workers could lose the benefits they desperately need. Employers can also have Paycheck Protection Program loans forgiven if they maintain their pre-coronavirus payrolls over eight weeks, which they can’t do if workers don’t come back.

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U.S. Rep. Garret Graves, R-Baton Rouge, told the newspaper, “If you’re (employers) offering a job and they’re not coming back, that’s compromising your entire loan forgiveness. This is a big issue.”

U.S. Sen. Bill Cassidy, R-Baton Rouge, during a town hall meeting by telephone, was asked by an employer what she could do if her restaurant employees refused to come back to work. Cassidy told her he thought she could still have her loan forgiven if she could document the fact employees didn’t return.

Robert Wooley, an assistant secretary for the Louisiana Workforce Commission, said employers are supposed to file a form with his agency identifying jobless employees who decline to return to work. Wooley said in normal times weekly benefits could be cut off, but there are exceptions.

The Workforce Commission is drafting rules, he said, on how to handle the issue. None of this is cut-and-dried, he added. No benefits will be cut off until after Gov. John Bel Edwards lifts his stay-at-home order in place through May 15 because so many companies haven’t returned to business.

Louis Reine, president of the Louisiana AFL-CIO, said the spread of COVID-19 hasn’t stopped, so laid-off employees shouldn’t be required to return to work unless their employer can provide a safe work environment.

The $600 added federal unemployment benefit is expected to be available through July, and, depending on the state of the economy at that time, the additional money could be extended past that date.

Congress, in a short period of time, has provided considerable financial help to deal with the pandemic so problems have to be expected. Now, it’s time for Congress to try and plug all the loopholes and settle other confusing issues.


This editorial was written by a member of the American Press Editorial Board. Its content reflects the collaborative opinion of the Board, whose members include Crystal Stevenson, John Guidroz, Jim Beam and Mike Jones.