There’s an intense debate currently occurring on Capitol Hill regarding additional relief and/or stimulus benefits for small businesses. Both political parties seem to be in agreement that more aid is needed as a result of the Coronavirus pandemic; however what should be included in the next round of legislation is far from certain. One area of disagreement is the $600 a week federally provided extra payments being made to the unemployed. This payment is on top of the standard unemployment benefits paid out by the states. It has resulted in many individuals making a great deal more money than they ever made at their jobs. These $600 extra payments are set to expire July 31st, however House Democrats are proposing that these added unemployment benefits be extended through January. Republicans contend that these payments are a deterrent for the unemployed to return to work.
In fact, we have had numerous clients complain that as they recall workers to return to their jobs, they are refusing because they (the laid off workers) are making far more money staying unemployed that they did at their jobs. The fact is that if an offer to return to work is extended and the laid off worker refuses to return to work, their unemployment benefits will be terminated—that includes the extra $600 per week.
We’ll continue to monitor developments regarding this ongoing debate and report any updates on the LL Roberts Group blog.
