VTDigger is posting regular updates on the coronavirus in Vermont on this page. You can also subscribe here for regular email updates on the coronavirus. If you have any questions, thoughts or updates on how Vermont is responding to COVID-19, contact us at coronavirus@vtdigger.org
People who are filing for state unemployment insurance for this week will start receiving their weekly $600 supplement from the federal government when they receive their unemployment check next week, according to state officials.
But for the self-employed and independent contractors, who are also in line to receive assistance from the state as a result of the COVID-19 crisis, the wait is going to be longer. It will be a few weeks before the state Department of Labor can set up and implement the new relief system for those who haven’t previously been eligible for unemployment insurance.
“If you have already filed a claim with the department, there is nothing more you need to do,” Michael Harrington, DOL’s interim commissioner, said in a wide-ranging press conference about state responses to the COVID-19 pandemic with other officials on Wednesday.
Harrington was referring to people who are eligible for unemployment insurance – those whose employer closed under state orders, or who left their jobs voluntarily because of the health crisis. “That $600 will automatically be added to your claim when you file for this week.”
Harrington and his department are wrestling with a deluge of unemployment claims in the wake of huge job losses last month.
The labor commissioner acknowledged Wednesday that many claimants can’t get through, and asked for patience and resilience among those filing claims. As many as 40,000 claims have been filed in the last few weeks – as many as the department usually handles in a year. DOL employees have volunteered to work seven days a week to handle the backlog.
“We’re using an all-hands-on-deck approach,” said Harrington. “We have reassigned people from other units, we have opened up additional phone lines; our staff have a monumental situation before them. They are doing everything they can to process claims and get money out the door to people.”
One-time federal payments
Meanwhile, a federal one-time payment to Vermonters earning less than $75,000 annually will be on its way within 30 days, said Lindsay Kurrle, secretary of the Agency of Commerce and Community Development.
The money will be automatically deposited to bank accounts linked to a taxpayer’s most recently filed tax information or will be mailed directly to taxpayers’ homes, Kurrle said.
Kurrle, Harrington and others also outlined the details of business relief packages that were approved as part of the federal stimulus package. Officials are still trying to iron out many points, but the impacts of those grants and loans are becoming more clear, Harrington said.
One group that will have to wait a little longer is the self-employed and independent contractors, like hair stylists or carpenters, whose work vanished nearly overnight as a result of stay-at-home orders.
DOL created a similar system for emergency relief in the wake of the 2011 Tropical Storm Irene, but Harrington said Wednesday that the department will have to create something different this time around.
“That was a much smaller scale. We don’t have that option because of the massive number of claims,” he said Wednesday. “It will be a few weeks before that system is stood up.”
Harrington added that independent contractors and the self-employed should go to the DOL’s website and submit their name and contact information so the department can reach them when payments do become available.
To get money into more peoples’ hands more efficiently, the DOL has waived its requirement that claimants be searching for work. It has made other changes to ensure that claims are not denied because someone has chosen to self-isolate due to being at higher risk than the general population if they contract the COVID-19 virus, Harrington said.
Benefits are also available to people who choose to stay home to care for family members.
“We’ve also added as many online forms as we can so people can do as much self-service as they can,” he said. “We recognize that there is a massive number of individuals doing everything they can online or by phone to contact the department.”
Vermont also provides unemployment insurance for people whose hours have been reduced or who lose their wages for reasons out of their control, Harrington noted. He said the details of how much they will receive will vary.
“If they have seen a significant reduction in wages they are also eligible,” said Harrington, urging anyone who is unsure about how much money they can receive to contact the department, despite the difficulty in getting through.
“Or at least file a claim,” he said. “We can work out the details on the back end.” The newly unemployed who can’t file a claim immediately because of processing delays will still get their money, backdated to when they lost their jobs, said Harrington.
“Please know that if you’re not able to get through, you’re not at risk of losing benefits,” he said. “Those will get paid out. I promise that those who are eligible for benefits will receive their benefits.”
Help for businesses
There are several loans and grants available to businesses through the $2 trillion disaster relief bill that was signed into law by President Trump March 28. State officials and business groups are still poring through the details.
The Vermont Agency of Commerce is encouraging all business owners to apply through the Small Business Administration for an economic injury disaster loan, because the application makes businesses eligible for a grant that provides an emergency advance of up to $10,000.
Businesses can use the $10,000 to pay workers, debts, rent, or other costs, said Kurrle. She added that employers should also talk to their lenders about the SBA’s paycheck protection program, which provides loans of up to $10 million for small businesses to cover payroll expenses.
“This is a significant incentive,” said Kurrle.
Kurrle said her agency has also received a number of complaints about businesses that appear to be non-essential carrying on regular operations despite the governor’s March 24 executive order directing them to cease in-person operations. Kurrle said the agency is responding by publishing details of how an essential business is defined.
“We’re asking for business owners to do their part to try to understand how they might comply without our specific guidance,” said Kurrle, noting that the agency is struggling with too many demands to speak to every business owner. “We’re asking people to make their best judgment. I encourage people to give folks the benefit of the doubt. If you’re looking around thinking someone is putting someone else at risk or harm’s way, if you’re comfortable trying to educate them, share the guidance of ACCD’s website.
“We really believe Vermonters want to comply,” Kurrle said.
