A month after Congress approved the payment of jobless benefits to self-employed individuals, the state of Tennessee on Monday began paying the extra benefits to the thousands of Tennesseans eligible for the new Pandemic Unemployment Assistance (PUA) benefits.
The Tennessee Department of Labor and Workforce Development had to build a new computer processing system and add more staff to handle the new type of clam. But state Labor Commissioner Jeff McCord said Monday that the expanded unemployment benefits are now being distributed to self-employed and so-called "gig" workers.
Self-employed individuals are not typically eligible for unemployment. But Congress expanded the eligibility for jobless benefits to cover those whose jobs or income has been lost due to business shutdowns from the COVID-19 crisis.
McCord estimates that tens of thousands of eligible individuals should have funds deposited into their bank accounts or debit cards this week.
In order to process the claims in the most expedient manner possible, all claimants will first receive the minimum weekly PUA benefit of $120 and the additional $600 weekly Federal Pandemic Unemployment Compensation (FPUC) benefit. Individuals eligible for more than the minimum will see their payments adjusted up over time. Payments are retroactive to March 15 or when the claimant first applied.
The state unemployment office utilized the minimum payment method in order to distribute benefits immediately, and then took the necessary time needed to calculate each claimant's weekly benefit amount, assistant labor commissioner Chris Cannon said. Once the department finalizes a weekly benefit, the claimant will receive the difference between the minimum and their actual benefit in a later payment.
"It's no secret that we have faced unprecedented challenges over the last few weeks," McCord said last week. "The volume [of jobless claims] has remained incredibly high and we know there is frustration out there. But we are working as hard and as fast as possible to handle all of these filings."
The Tennessee Department of Labor and Workforce Development has added more than 300 workers, upgraded its computers and shifted staff to respond to the deluge of jobless filings. Since last week, those steps have helped boost the share of jobless claimants being paid within 21 days of their filing to about 98%.
The state paid a record number of initial jobless claims last week and is paying a record amount of money in benefits. The extra $600 a week of federal benefits has boosted the maximum weekly benefit for those getting jobless aid in Tennessee from both the state and federal governments up to $875 a week, or the equivalent of $45,500 a year.
The Pandamic Unemployment Assistance program provides up to 39 weeks of benefits to qualifying individuals who are otherwise able to work and available for work except that they are unemployed, partially unemployed, or unable or unavailable to work due to COVID-19 related reasons
Self-employed Tennesseans can still apply for PUA by visiting www.Jobs4TN.gov or calling 844-432-0969.