Unemployed caught in crisis Struggling jobless benefits system could cost workers federal help
TALLAHASSEE – A $2 trillion bill in Congress designed to soften the blow of the coronavirus beefs up jobless benefits for newly unemployed workers, but some outof-work Floridians wonder whether they’ll get any help at all.
The measure, which is expected to be approved Friday by the House and sent to President Trump, includes up to $600 a week for workers on top of state benefits. But CONNECT, Florida’s system for processing unemployment insurance, isn’t keeping up with the surge of laid-off workers applying.
“I’m calling and nobody answers. This morning I called, they put me on hold and the phone just went dead,” said Maxine Jackson, a single mother of five who was laid off Friday from her job as a housekeeper at the St. Regis Hotel in Bal Harbor. “I’m worried because I’m wondering where I’m going to get money to get food on the table for my kids.”
Unemployment has skyrocketed nationwide, fueled by the closure of many businesses due to social distancing imposed to thwart COVID-19, the disease caused by the coronavirus. On Friday, the government said the U.S.
recorded a record amount of initial unemployment claims last week, 3.3 million, more than five times the previous record of 695,000, set in 1982.
In Florida, where restaurants have been reduced to take out or delivery only, and tourist attractions, bars and some hotels have shuttered, there were 74,021 new claims filed last week, a more than 1,000 percent increase over the 6,256 claims the week before.
Aware of the flood in claims, Gov. Ron DeSantis has ordered the state Department of Economic Opportunity to waive the requirements that claimants search for work to get benefits, retroactive to March 15 and through May 2.
DeSantis has said he’s told DEO executive director Ken Lawson to “ramp up” hiring to handle the increased claims and call volume but also stressed Florida’s historically low unemployment rate – 2.8 percent in January – has left the agency shortstaffed.
“This is a very sudden increase of course in terms of what we’re looking at here,” DeSantis told reporters Wednesday. “We’re looking at going from a state where one day it’d be 500, then 1,000, then 250 - to now a state where you’re seeing 15-20,000 a day that are going to apply for unemployment.”
Those challenges are leading to thousands of claimants running into busy signals and an online system that frequently can’t handle the high volume. DeSantis and Lawson have said they’re adding servers to increase capacity as well.
But union representatives on Friday called on DeSantis to do more.
In a letter signed by 110 union leaders and representatives around the state, they urged DeSantis to use his emergency powers to increase the maximum benefit; increase the maximum number of weeks of eligibility from 12 to 26; and allow those who voluntarily quit their job due to being quarantined or fears over unsafe working conditions to still receive jobless benefits.
Even if a laid-off worker can get a claim filed, Florida’s system is already one of the stingiest in the country, paying out a maximum of $275 per week, the sixthlowest in the country.
If a Floridian who made an average of $1,000 per week last year files for jobless benefits now, the most they would receive is $875 per week, once the $600 in federal benefits is added. The state benefits would run out after 12 weeks if the person couldn’t find another job; the federal benefits would run out after four months.
While Florida’s system scrambles to dole out benefits under the current system, it could also struggle to handle the additional federal benefits, adding more time to the process while those in need try to get by on the state’s meager unemployment checks.
“It took me three days to manage to finish the unemployment application myself,” said Lynne Reback, a union leader who was laid off from her job as a bartender at Ruby Tuesday’s at the Orlando International Airport. “Once I receive my benefits, it’ll only be $275 a week, which won’t even cover my groceries and utilities for my household. It’s a joke. I have five children under my roof. If this lasts longer than 12 weeks and these benefits run out, I don’t know what my family will do.”
Another feature of the additional jobless benefits in the congressional bill is it would apply to “gig economy” workers – Uber and Lyft drivers, and drivers for DoorDash, for example. But Florida classifies them as independent contractors, not full-time employees, so they aren’t eligible for state unemployment.
It’s unclear how DEO would handle those newly out of work employees of the gig economy, and how much they would be eligible for once their claims are processed. A spokeswoman for DEO did not return an email with questions about the Congressional bill Thursday.
Meanwhile, those feeling the first impact of the coronavirus’ effect on the economy are left scrambling to pay bills.
“It’s ridiculous,” Jackson said. “We need help and we need help now. We need a paycheck.”