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Federal Pandemic Unemployment Compensation

Expanded unemployment benefits have been included with the recent passing of the CARES Act. While information related to these benefits continues to roll out, especially related to the application process at the state level, we wanted to provide this update to ensure you're aware of the available assistance and the first steps necessary to obtain these benefits. Unemployment benefits have been expanded from January 27, 2020 through December 31, 2020. Take special note that self-employed individuals (i.e. sole proprietors), contract laborers, and gig workers are eligible to receive benefits. This is a major change from previous coverage.

Two of the major provisions of the CARES Act related to unemployment benefits are as follows:

  1. 13 additional weeks of unemployment insurance beyond the standard 26 weeks; and
  2. An additional $600 per week in addition to what state unemployment programs pay.

States have been granted permission to use the following additional reasons by the federal government to extend unemployment benefits:

  1. In the case of an employer temporarily ceasing operations due to COVID-19, preventing employees from coming to work;
  2. In the case of an individual being quarantined with the expectation of returning to work after the quarantine is over; or
  3. In the case of an individual leaving employment due to a risk of exposure or risk of infection or to care for a family member.

Please note that individuals are not required to be actively seeking employment at this time to receive these emergency unemployment benefits. Individuals should contact their own state unemployment office to explore the benefits for which they are eligible. Here is a link to a good resource to search quickly among the states for websites and other contact information. Linked here . Please see below for additional information for Kentucky and Indiana residents.

For Kentucky Residents

Kentucky has relaxed the rules for receiving unemployment benefits in an effort to assist residents as quickly as possible. The seven-day waiting period to access benefits has been lifted, meaning benefits will be paid for the first week you are eligible. Some who have not historically been eligible for unemployment benefits (including self-employed individuals and gig workers) are now eligible to receive benefits. Further, individuals whose hours have been reduced are eligible for partial unemployment compensation. State licensing, renewal, and application fees are waived for businesses and individuals. Additionally, a company's unemployment insurance rate will not be impacted if it is forced to lay off employees due to the coronavirus.

Individuals should contact Kentucky's unemployment insurance office as soon as possible after becoming unemployed, as they are already seeing record numbers of unemployment claims being filed. The phone number to call is 502-875-0442 although accessing the website directly here is the quickest method for filing a claim.

For Indiana Residents

Indiana has taken similar steps to assist in the process of obtaining unemployment benefits. Indiana has waived the one-week waiting period, allowing benefits to be paid for the first week of eligibility. In line with the federal directive, residents are not required to actively search for work during the crisis, though claimants must still be able and available for work. Self-employed and gig workers are also eligible for benefits.

We strongly advise applying as soon as eligible given the number of people applying for benefits. Additionally, the state has indicated that it will take up to three weeks to begin receiving benefits. The Indiana Department of Workforce Development is extremely difficult to reach by phone, so they require use of their online platform  to apply. You can find that site, along with a helpful list of answers to commonly asked questions here. You can find that site, along with a helpful list of answers to commonly asked questions here .

If you have any additional questions about unemployment issues, please feel free to reach out to us at any time.