The COVID-19 crisis has been quite a shock, and fortunately, measures are being taken to help us absorb it.
One welcome surprise was hearing that drivers are now eligible for unemployment compensation. On March 27, 2020, emergency legislation known as the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law. Part of the Act is a program called Pandemic Unemployment Assistance (PUA), which extends unemployment benefits to independent contractors who are not usually eligible for those benefits—like rideshare drivers and other gig workers.
If you haven’t applied yet, or want to know more about unemployment for drivers under the CARES Act, you’ll find lots of information in this Gridwise article.
The unemployment compensation train may be on its way, but in many drivers’ cases, it hasn’t made it into the station yet. One reason for the delay is the unprecedented onslaught of applications. Also, applications for benefits, including authorization for the extra $600 per week from the federal government, are being administered by individual states.
At first, turning to your state for assistance sounds much easier than going to the Feds, but in this case that isn’t necessarily true. Each state has its own rules and guidelines for unemployment, and each state’s computer system must be configured to accommodate the new rules that apply to independent contractors.
That means 50+ government entities have had to alter their computer systems, websites, and the ways they mete out money. Most states are making progress, but the first payment hasn’t even come through yet in many of them. If you’re among those who are stuck waiting, you might want to explore more ways to bring in money in the meantime. Check out this Gridwise article for some ideas.
New law brings big questions
Aside from all the snags and delays, if you do apply for unemployment compensation, it will make its way to you … eventually. Will you get enough to pay your bills? What if you don’t? Even with the extra $600 per week, most full time drivers won’t be making as much as they did before the COVID-19 crisis knocked us flat.
Another burning question is, what happens if you work while you’re collecting unemployment? If you list this extra income in your weekly or bi-weekly claim, will your benefits be reduced? Will you still get the $600 per week from the Feds?
We at Gridwise really wish we could answer these questions for everybody with one simple answer, but unfortunately that isn’t possible. Like most everything else related to unemployment benefits, the answers you need depend on the state in which you live and work. What we can do is provide you with information we’ve collected from all the states. So read on …
State-by-state guidelines for earning while unemployed
Right upfront, we need you to know that we are not legal experts. We’re simply conveying information to lead you toward the answers that are factual and legal in your particular case. You’re responsible for following the procedures and laws that are specific to your state when you apply.
A good place to start is your state’s unemployment website, which hopefully has been updated with the new information. Find whatever section addresses CARES Act benefits, and read what your state’s policies are. If you prefer to handle this via telephone, you should be able to find the number on the website.
In the meantime, we’re offering a glimpse at the different states’ policies. Look for yours, and you’ll find out what might happen if you work while collecting unemployment benefits, and if that’s allowed, how much you’re permitted to earn.
Note: In some states, you must first apply for regular unemployment compensation before applying for PUA.
Also, in some cases, the maximum benefits and rules for partial unemployment may not apply for PUA recipients. In many cases, the rules are more lenient. We’ve gathered some information for you here, but most of it refers to partial unemployment before the CARES law was passed.
You definitely need to refer to your state’s website for all the details, and direct any questions you have to your state authorities.
Alabama — Maximum benefits: $265 per week. Partial unemployment is calculated based on your weekly earnings report. You’ll get the difference between your weekly benefit and your wages for the week.
Arizona — Maximum benefit: $240 per week. You can earn up to $30.50 each week with no effect. After that, partial unemployment will be calculated by subtracting each dollar you earn above $30.50 from your benefit amount.
Arkansas — aximum benefit: $451 per week. If you work less than 40 hours and earn less than 140% of your weekly benefit, you’ll still get your benefits. Once earnings go up to 40% of your payment, your benefits will be reduced.
California — Maximum benefit: $450 per week. You can earn up to $25.99 without penalty. If you earn between $26 and $99.99, any amount over $25 will be deducted from your benefits. If you earn over $100, 75% of the wages will be deducted from your compensation.
Connecticut — Maximum benefit: $590 per week. Two-thirds of the amount of your earnings would be deducted from your weekly allocation.
Colorado — Maximum benefit: $529 per week. If you work more than 32 hours in a given week, you’ll be considered to be working full time, and partial benefits won’t be paid for that week. You can earn up to 25% of your benefit amount for any given week without reducing your benefits. Any earnings greater than that, but less than your benefit amount, will be subtracted dollar-for-dollar. If your earnings exceed your benefit amount, you won’t be paid for that week.
D.C. — Maximum benefit: $359 per week. 80% of your earnings plus $20 will be used as a basis for partial unemployment benefits, i.e. earnings in addition to your benefits.
Delaware — Maximum benefit: $330 per week. You can earn 50% of your benefit without penalty. Anything over that is deducted dollar for dollar.
Florida — Maximum benefit: $275 per week. Any income you make will be deducted from your payments.
Georgia — Maximum benefit: $330 per week. With partial unemployment, you can earn the amount of your payment, plus $50 and still get your full benefit amount.
Hawaii — Maximum benefit: $560 per week. Partial unemployment allows you to earn up to the level of your benefit amount, as long as you don’t work full time. You will be paid the difference between your benefit and your gross earnings, plus $150.
Idaho — Maximum benefit: $336 per week. If you earn half of your allowed amount or less, you’ll still get the full benefit. If you earn more than 50% of your benefit, your benefit will be reduced dollar for dollar. If you work full time (40 hours or more), or earn 150% of your benefit in gross earnings in one week, you won’t get a payment for that week. If you earn 150% of your benefit for two weeks in succession, you’ll have to open a new claim on the third week if you still need it.
Illinois — Maximum benefit: $418 per week. If you earn more than half of your weekly rate, your benefit will be reduced by the amount of money that is over $50% of your wages.
Indiana — Maximum benefit: $390 per week. You can work part time and earn less than your benefit amount, but dollar-for dollar deductions are made for all wages that are 20% or more of your weekly benefit amount.
Kansas — Maximum benefit: $420 per week. You can work less than full time and earn less than your benefit amount, but any money you earn over 25% of your benefit will be subtracted from your weekly unemployment compensation.
Kentucky — Maximum benefit: $415 per week. You can work less than full time and earn less than 125% of your weekly benefit. However, 80% of your gross wages will be deducted from your benefit.
Louisiana — Maximum benefit: $247 per week. You may earn less than your weekly benefit amount. Each case is reviewed individually, to determine if any reduction in benefits will be made.
Maine — Maximum benefit: $378 per week. You can earn $25 per week with no impact on your benefit. After that, anything you earn is deducted from your payment. If you earn $5 or more over your benefit, you won’t get a payment for that week.
Maryland — Maximum benefit: $430 per week. You can earn up to $50 per week before deductions go into effect. If you earn more than that, the amount you earn will be deducted from your weekly benefit.
Massachusetts — Maximum benefit: $674 per week. You can earn 33% of the amount of your benefit check. The benefit will be reduced dollar for dollar for amounts over 33%. Once the benefit is reduced to $0, you no longer qualify for benefits. Also, you must not work more than 35 hours per week, or you will be considered to be working full time and will not be eligible for that week.
Michigan — Maximum benefit: $362 per week. You can earn money, but your benefits will be reduced by 40% if you do. If your wages exceed your payment, but are less than 1.6 times your benefit, your total wages are subtracted from 1.6 times your benefit.
Minnesota — Maximum benefit: $629 per week. You can work less than 32 hours and still collect, as long as your earnings are less than your weekly payment amount, but your benefit will be reduced by 50%.
Mississippi — Maximum benefit: $325 per week. Any earnings over $40 will be deducted from the weekly payment.
Missouri — Maximum benefit: $320 per week. Earning up to 20% of your benefits won’t result in a reduction, but your benefit will be reduced dollar for dollar for earnings over 20% of the benefit amount.
Montana — Maximum benefit: $464 per week. You can work less than 40 hours a week, and as long as you’re working for all the available hours, you’ll still get a partial payment. Your earnings have to be less than twice the amount of your benefit amount. If you earn more than 25% of your benefit in any week, your payment will be reduced by $.50 for each dollar over that amount.
Nebraska — Maximum benefit: $362 per week. You can earn up to 25% of your weekly benefit, but after that, earnings are deducted dollar for dollar from the benefit amount.
Nevada — Maximum benefit: $407 per week. If your gross earnings are less than the benefit amount, 75% of that amount will be deducted from the weekly benefit. They will, at least, hold on to those funds in case you need them in the future.
New Hampshire — Maximum benefit: $427 per week. You can work less than 20 hours, and your benefit amount will be reduced by any amount that exceeds 30% of the weekly benefit.
New Jersey — Maximum benefit: $611 per week. You can earn up to 20% of your benefit amount without penalty, but beyond that, earnings will be deducted from your weekly payment.
New Mexico — Maximum benefit: $397 per week. You can earn up to 20% of your benefit amount, but if you earn more, your payment gets reduced dollar for dollar. You can’t receive any benefits if your earnings are equal to or greater than your benefit amount.
New York — Maximum benefit: $420 per week. Each hour you work is counted as working a day, so your benefits are reduced by 25%. If you work 4 days, you lose your benefits for the week.
North Carolina — Maximum benefit: $350 per week. Your payment gets reduced by the amount of any wages that exceed 20% of your benefit payment.
North Dakota — Maximum benefit: $470 per week. You may earn up to 60% of your benefit amount, but every dollar you earn after that is subtracted from your weekly payment. If your earnings exceed the amount of your benefit, you are not eligible for that week.
Ohio — Maximum benefit: $418 per week. You can earn up to 20% of your benefit amount, and then earnings will be deducted from your payment.
Oklahoma — Maximum benefit: $440 per week. As long as you work less than 32 hours, which is considered full time, and earnings are less than your weekly benefit plus $100, you qualify for your full payment.
Oregon — Maximum benefit: $538 per week. You can earn ten times the minimum wage or 33% of your weekly benefit amount before deductions are made. Deductions are the amount of earnings over that amount.
Pennsylvania — Maximum benefit: $573 per week. If you earn less than 40% of your weekly benefit rate while working part-time, you still get your full payment. If you earn more than 40% of your benefit, as long as your part-time earnings (when added to your weekly benefit) do not exceed your weekly benefit plus 40% of that amount, you’ll still be entitled to collect payments. Reductions will be made according to a formula.
Rhode Island — Maximum benefit: $566 per week. You can still collect your payment as long as your gross earnings are less than your benefit rate. Your benefit will be reduced by the difference between the payment and your earnings, plus 20% of your benefit.
South Carolina — Maximum benefit: $326 per week. Your earnings must be less than your weekly benefit amount. 25% of your eligible benefit amount will be subtracted from your earnings. Then, the rest of the earnings will be deducted from your payment.
South Dakota — Maximum benefit: $345 per week. If your earnings are equal to or greater than your benefit amount, you will not be paid your benefits. This is also the case if you worked 40 hours or more: 75% of your earnings over $25 will be taken away from your weekly benefit amount.
Tennessee — Maximum benefit: $275 per week. Earnings over $50 (or 25% of your weekly benefit) will not reduce your payment from the state. If you go over your weekly benefit amount, your claim will be suspended, and you’ll have to re-open it.
Texas — Maximum benefit: $465 per week. Part time workers can earn up to 25% of the payment before it gets reduced.
Utah — Maximum benefit: $479 per week. It’s all right to earn up to 30% of your benefit amount without getting a reduction. Once you go over that amount, your benefit will be reduced dollar for dollar. If you earn an amount that’s equal to or greater than your payment, or work full time (40 hours or more), you won’t get your payment.
Vermont — Maximum benefit: $425 per week. Any money you earn will be subtracted from your payment.
Virginia — Maximum benefits: $378 per week. You can earn up to $50 without losing your benefit. After that, deductions will be made dollar for dollar. If you earn the amount of your benefit or greater, you will not receive a payment for that week.
Washington — Maximum benefits: $637 per week. Working part time will result in a reduction in benefits. Your gross earnings, minus $5, times 75% will be deducted from your payment.
West Virginia — Maximum benefits: $424 per week. As long as your earnings aren’t greater than your benefit amount, plus $60, you’ll still receive benefits. Earnings over $60 will be deducted from the weekly payment, however.
Wisconsin — Maximum benefit: $370 per week. You can earn $30 without penalty, but for every dollar you earn after that, $.67 will be taken from your benefits. You won’t get any benefits if you work more than 32 hours in a week, or if your total gross pay is more than $500. However, not everyone has the same limit on weekly earnings. They provide a formula for calculating it.
Wyoming — Maximum benefit: $471. Once you earn 50% of your benefit amount, your weekly payment will be reduced. If you work 35 hours or more, or earn more than your weekly benefit amount, you won’t be paid benefits. If you earn more than 50% of your maximum amount, benefits will be reduced dollar for dollar.
So should you work while you’re collecting unemployment … or not?
It seems incongruous to think you might make more money by staying home than by working, but that’s how unemployment works—at least this time. Without a doubt, the state amounts alone would incentivize people to get other work. However, the additional $600 per week from the federal government adds a huge incentive to work only as much as you can without losing your benefits.
There’s a good reason for that. Of course, government leaders don’t want people to be out working if they’re unhealthy, or if there’s a chance they’ll spread COVID-19. This is a very specific and unique situation, and it won’t last forever.
In some states, you can probably do some work and collect a little unemployment, and still get the $600 per week from the Feds. You’ll have to check your state’s restrictions and determine what’s best for you. No matter what you decide, we can’t emphasize enough the importance of being completely honest about your unemployment claims, and any earnings you report. The legal consequences for hiding income or trying to game the system in any other way can be deadly serious.
Make your decision, and remain informed
Whether to work or not to work during the COVID-19 crisis, and while you’re accepting unemployment, is a decision only you can make. Here at Gridwise, we like to give you the information you need to make your choice based on knowledge. Do you have any inside information about unemployment in your state, and how your state is handling PUA benefits? Tell us about it in the comments section. And—make sure you download Gridwise so you’ll continue to be in the know about the best strategies for getting the benefits you deserve until you can get back out there on the road!
