What does Trump’s new bill mean for unemployment benefits

cash value unemployment benefits cash cushion Top 10 companies with largest cash reserves in the worldpasja1000 / Pixabay

President Trump signed the latest coronavirus aid package into law last night after it was passed by the Senate.  Rebecca Bernhard, a partner at the international law firm Dorsey & Whitney in both its labor and employment practice, says that she has been fielding calls from employers across every industry since the bill was signed last night advising them on what it means for business and their employees and the applications for unemployment benefits. Of this she say:

Get Our Activist Investing Case Study!

Get the entire 10-part series on our in-depth study on activist investing in PDF. Save it to your desktop, read it on your tablet, or print it out to read anywhere! Sign up below!

Q4 2019 hedge fund letters, conferences and more

Eliminating Barriers For Applicants Seeking Unemployment Benefits

"To me the most interesting provision is the unemployment access section.  The practical effect of this provision of the Act is that more applications for unemployment benefits are likely to be granted.  Many states have already passed emergency executive orders to reduce or eliminate barriers to applicants seeking unemployment benefits and with this new law, we expect more will follow suit."

"Many employers are now grappling with the economic effects of shelter-in-home orders, social distancing mandates and actual illness.  Since Monday, the vast majority of my client calls have centered around implementation of furloughs, lay-offs, reduced hours, and work-from-home policies.  Employers want to know whether their employees will receive some benefits if the company implements a furlough."

"The final provision regarding unemployment should help states help the employers in their states navigate those waters without fear of increased tax assessments or other adverse consequences to the strain on the unemployment system."

Why Are Large Employers Exempt From The New Law

"Some critics will say it did not go far enough – for example, why are large employers – those with over 500 employees – exempt from the new law?  Many note that it is smaller employers who are more vulnerable to the economic difficulties and employees of those smaller companies that are most likely to need federal mandated benefits.  However, imposing mandatory economic obligations onto small employers is not something that would have received such quick bi-partisan and presidential support.  Compromises have to happen.  That still leaves us wondering why large employers were exempt."

"The practical combination of the unemployment provisions and the limits on the additional paid sick time create a perverse incentive for small employers to do better by their employees to implement short-term lay-offs: such employees can then receive unemployment benefits where those same employees will not see any relief from the emergency leave and FMLA modifications in the new law." Bernhard says.

For exclusive info on hedge funds and the latest news from value investing world at only a few dollars a month check out ValueWalk Premium right here.

Multiple people interested? Check out our new corporate plan right here (We are currently offering a major discount)



About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver

Be the first to comment on "What does Trump’s new bill mean for unemployment benefits"

Leave a comment

Your email address will not be published.