The enhanced unemployment benefits that were part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act provided addition funds to people who lost jobs during the COVID-19 pandemic, but at least two states in the country, Wisconsin and North Carolina, have a law preventing Social Security Disability Insurance (SSDI) beneficiaries from collecting unemployment. The new question regarding people who fall into this category was whether they would be eligible for Pandemic Unemployment Assistance (PUA). In a letter dated July 27, 2020, John Pallasch, the assistant secretary for employment and training at the Labor Department wrote that “it appears that under Wisconsin law, SSDI income would not be reduced from an individual’s DUA (or PUA) entitlement.” This means that people in Wisconsin and North Carolina are eligible for both SSDI and PUA benefits.
Pallasch’s letter was sent to Caleb Frostman, Wisconsin’s secretary of state. Below is a portion of Pallasch’s letter sent to Frostman.
The plain language text of the Wisconsin law, and the Department’s understanding of the State’s interpretation of its law, would disqualify individuals who receive SSDI from eligibility for regular UC. Because these individuals are ineligible for regular UC, they meet the PUA eligibility requirement of “not eligible for regular compensation.” Therefore, if they are unemployed, have reduced employment, or are unable to work or are unavailable to work due to one of the specified COVID-19 reasons outlined in the CARES Act or the Department’s guidance in UI Program Letter No. 16-20, they may be eligible for PUA benefit.
This decision is a positive outcome for the people of Wisconsin and North Carolina who have seen benefits cut they used to be eligible for. The Labor Department decision adds a little extra help to people of these states who have struggled during the pandemic.
