Arkansas HVACR NewsMagazine September 2020

Everyone has benefited from this $2 trillion package but it has some unintended consequences which should have been easily anticipated. The additional $600 per week on top of any state-provided unemployment benefits. That very generous “ Add On ” put a significant portion of unemployed making more than they made working. Thus, some businesses are having problems getting folks back to work--- can you blame the employee? If my information is correct, Arkansas regular unemployment benefits are 1/26 th of the base quarter. Won ’ t go into determining the base quarter. We ’ ll just focus on assumed based quarters where a person was making $10, $11, $12, $13, $14, and $15 per hour. Employed Income Reg Benefit CARES Add On Total Hrly Wkly $10 $400 $198 $600 $798 $11 $440 $218 $600 $818 $12 $480 $238 $600 $838 $13 $520 $258 $600 $858 $14 $560 $277 $600 $877 $15 $600 $297 $600 $897 The question is, would you go back to work as long as you were making this kind of money? Probably not; but, the CARES money stopped July 31. Time to find a job. Not so fast. With all the political pressure and legitimate need of Americans still suffering from COVID 19 related unemployment, the feds and the state have moved to extend the “ Add On ” . Governor Hutchinson announced his intent to continue the “ Add On ” at a

Unintended Consequences

Well Intentioned but STUPID. With shoot from the hip legislation that was rushed to help American workers and Businesses reeling from the Corona Virus, the CARES act passed on March 27, 2020. The Coronavirus Aid, Relief, and Economic Security Act, was a $2 trillion stimulus package providing direct cash transfers and expanded unemployment benefits. Highlights included the following: a) cash payments of up to $1,200 (plus $500 for each child age 16 or under) for each qualifying adult b) an additional $600 per week on top of any state-provided unemployment benefits through July 31 c) up to 13 weeks of unemployment benefits in addition to what your state provides, up to 39 weeks; and d) unemployment benefits for self- employed and gig workers Unemployment insurance was and is designed to keep food on the table while a person looks for a job after being laid off through no fault of their own. In the case of the CARES Act, if you've been laid off or seen your hours reduced due to COVID-19, you may be eligible for unemployment benefits. In addition, you may qualify if you can't work because you've been told to quarantine or self-isolate, you're caring for a family member with COVID-19, or you're looking after a child whose school has closed.