As the country begins to reopen, millions of Americans have yet to receive any unemployment benefits.
It seems that in certain states, the unemployment system computers crashed when overrun with applications. In Florida, the process is handled by the Department of Economic Opportunity, DEO.
By March 25th the DEO computer system was down – completely. Thousands of claims filed by computer prior to the crash were lost. The problem became more serious when workers were left unaware that their claim did not exist.
Only after the news media began hearing from the public did an alarm sound. Television news crews began filming passionate pleas from laid off workers struggling to feed their families. One man said, “The publicity worked.” He got benefits almost immediately. Others are still waiting.
The actual date of the national shut down is a bit murky but is somewhere between March 16 and March 24, 2020. It is largely dependent on the state you’re in.
The federal government passed The Coronavirus Aid, Relief, and Economic Security (CARES) Act on March 27, 2020. It is a multipart emergency action to help workers left without income due to the federal shutdown.
In addition to the $1,200 per person one time benefit, the act also guarantees eligible employees additional payments of $600 per week. (paid by the Federal government, through State unemployment systems)
Employee Eligibility: An individual is eligible for the full $600 weekly payment if the individual receives one dollar ($1) or more in regular unemployment compensation for the week from an individual’s home state.
The CARES $600 benefit will be paid until July 31, 2020 as long as the beneficiary is not working.
According to Pew Research, 29% of benefits for March have been paid, That amounts to 2.7 million of the 7.37 million seeking benefits
More than 70% have yet to collect benefits., While most have received the one time $1,200 payment, it is the only income received over the past 12 weeks. It’s difficult when living paycheck to paycheck to manage the needs of a family with a single payment.
Florida is one state struggling to make payments to eligible citizens. For many, not even the CARES act payment has been made. The Florida Governor is on record assuring that benefits, including back benefits will be made.
In May, lawyers seeking Class Action Status, sued the DEO connect system. They were attempting to collect benefits on behalf of clients. The suit was denied by a Tallahassee Judge..
The wait has left many destitute. “Rent is past due, but I have to pay my cell phone to stay connected. The cable bill has become important, The kids need it for school work,” said one single mom who wanted to remain anonymous.
She was laid off due to Covid-19 on March 20th. She dutifully filed for benefits the following Tuesday. Weeks later she learned that Florida’s computer system had crashed and her claim did not exist. “How do you explain to your children that rice is all we can afford right now?”
This mom’s story is not isolated. Florida says that there are millions. The Governor has reported that 99% of claims filed in March are current. Perhaps, but that obviously does not include the March cases that were deleted. Many waited weeks before learning they needed to refile.
They will likely get benefits, but that does not change the emotional trauma of facing homelessness. These people did nothing wrong. They would still be working if it were possible.
Other states are doing better. The North Carolina system is working. A mother was laid off from a part time position with a non-profit. Normally, she would not be eligible for any benefits. As it turns out, she is collecting the $600 (CARES) per week plus a state weekly benefit of $86.
The death toll of Covid-19 is near 104,000. The danger extends beyond the ICU. President Trump warned of the other dangers of a shut down. Loss of income is pushing many past the breaking point.
Millions more are losing hope of surviving. One man said, “I’m worth more dead than alive. If I don’t make the premium payment on my life insurance, even that won’t be true.” There was an odd look in his eyes.