State Leg. Press Release: MA Expands Unemployment Benefits

Press release from state Sen. Cindy F. Friedman, state Rep. Michelle Ciccolo and state Rep. Richard Haggerty:

Last Thursday, the Massachusetts General Court passed legislation that will provide additional Unemployment Insurance (UI) relief to low-income families, non-profit institutions, and employers. The bill builds upon the Legislature’s ongoing efforts to address the COVID-19 public health crisis and its impact on workers. Wednesday, the Governor signed the bill, An Act Providing Additional Support to Those Affected by the Novel Coronavirus Through the Unemployment Insurance System, into law.

This measure builds on UI legislation already signed into law that waived the one-week waiting period for residents to start receiving unemployment benefits. It also follows the recent passage of the federal Coronavirus Aid, Relief and Economic Security Act (CARES Act), which significantly increased UI benefits and expanded eligibility during the coronavirus pandemic.

“This bipartisan legislation builds on our continued dedication to helping our workers and employers as they face financial hardship brought on by the COVID-19 pandemic,” said Senator Cindy F. Friedman (D-Arlington). “This bill will provide much-needed economic relief to residents across the Commonwealth who have lost their jobs in the wake of the pandemic.”

“While we all do our part to socially distance in order to slow the spread of the coronavirus, working families are bearing the brunt of the associated economic consequences through no fault of their own,” said Representative Ciccolo (D-Lexington). “With the support of my colleagues in the House and Senate, I am pleased that we were able to pass this legislation in order to assist workers, non-profits, and employers who are suffering during this difficult time.”

“This bill provides important protections for employers who have been forced to lay off individuals due to COVID-19, making sure they are not forced to pay higher UI rates,” said Representative Haggerty (D-Woburn). “It also offers critical relief for our self-insured non-profits by delaying the payments they need to make back to the system. I will continue to monitor other relief measures small employers may need.”

Among its many provisions, the legislation:

Extends the Unemployment Benefit Period. The number of weeks of unemployment compensation available in Massachusetts is tied to unemployment rates around the state. However, this trigger did not anticipate a situation in which unemployment grows rapidly in a very short period of time. This bill increases the unemployment benefit period from 26 weeks to 30 weeks when there is a significant uptick in weekly unemployment claims, as the system is experiencing currently.

Lifts the Cap on Dependency Allotment. This bill eliminates the 50% cap for the dependency allotment, providing additional benefits to low-income families. This increase will be in addition to the $600 per week benefit add-on provided for in the CARES Act for all workers eligible for state or federal benefits. It will remain effective for 18 months after the end of COVID-19 emergency and the end of enhanced federal benefits.

Currently, UI recipients are entitled to an additional $25 per week for each child in the family, capped at 50% of a recipient’s base allotment. The result is that workers with particularly low allotments, such as low wage workers, can easily be capped out of receiving these additional amounts.

Provides a Grace Period for Non-Profit Unemployment Contributions. Presently, many non-profits self-insure for unemployment claims. This means that when layoffs in the sector occur, non-profits pay the cost of those benefits dollar for dollar at the next billing period. This bill provides a 120-day grace period for non-profits to make these contributions. This delay will allow the state to review additional changes that are warranted to mitigate this impact on non-profits. The federal CARES Act provides 50% reimbursement for self-insured benefit payments during the Coronavirus crisis.

Protects Employers. Employers that participate in UI pay contributions based on their layoff experience. Like other forms of insurance, employers that are more likely to have workers use unemployment compensation are asked to pay more into the system. However, the system does not anticipate a situation where employers across a number of sectors have been forced to significantly reduce their workforces due to situations outside of their control. This bill prevents layoffs related to coronavirus from negatively impacting employer’s future UI contributions.

This press release was produced by state Sen. Friedman, and state Reps. Ciccolo and Haggerty. The views expressed are the author's own.