Connect with us

Work

Help is coming for gig economy workers and small businesses hit by the coronavirus crisis

Published

on

Data pix.

Workers in the gig economy are finally getting government support to help them cope with the economic devastation caused by the coronavirus crisis.

In the United States, the federal government is poised to extend unemployment insurance payments to gig economy workers for up to 39 weeks, and top them up by an extra $600 a week, as part of a $2 trillion economic stimulus package.

The UK government on Thursday unveiled what finance minister Rishi Sunak described as “one of the most generous” support programs anywhere in the world for Britain’s 5 million self-employed workers.

The plan mirrors wage subsidies promised last week to people in regular employment, providing the self-employed with a cash grant of 80% of their average monthly profit, up to £2,500 ($3,000) a month, over the next quarter.

Millions of people who don’t have full-time employment or who own businesses that rely on people getting together — such as taxi drivers, food delivery workers, builders, hairdressers and cafe owners — have been left unable to earn an income as governments shut down non-essential services and introduce strict social distancing measures.

In many cases they face an impossible choice: break lockdown rules, or stay home and earn nothing. Before Thursday’s announcement, self-employed workers in the United Kingdom were only getting tax relief and £94 ($114) a week through the benefits system.

Josie Ferguson, a 24-year old assistant buyer in London’s film and television industry, said she is losing £700 ($850) a week because a production she was working on has been postponed.

“It’s a complete shutdown. People won’t get paid and we get no help because we are contracted workers,” she told CNN Business. Ferguson considers herself lucky because she can live with her parents and has savings, but she said her friends in London will struggle to pay rent.

Uber CEO Dara Khosrowshahi welcomed the support proposed by the US government in the huge package that won Senate approval on Wednesday.

“The 1.3 million Americans who drive and deliver with Uber are facing extraordinary economic challenges,” he said in a statement. “Those who’ve lost the opportunity to earn need and deserve this support.”

A record 3.28 million Americans filed for their first week of unemployment benefits last week, the most in more than 50 years, according to the Department of Labor. Data from the Bureau of Labor Statistics shows that about 15.9 million Americans, or 10% of the country’s workforce, are self-employed.

What’s happening in Europe?

Governments across Europe have already announced measures to help their self-employed workers, although they vary widely in scope and generosity.

In Germany, the region’s largest economy, companies with up to five employees qualify for a one-off grant of €9,000 ($9,900), while those with 10 employees will receive €15,000 ($16,500). The government has made an additional €3 billion ($3.3 billion) available to enhance social security benefits for the self-employed.

In France, small businesses and freelancers who make less than €60,000 ($66,000) a year can apply for €1,500 ($1,650) in aid if they are forced to close or if their revenue falls by more than 70% this month compared with March 2019.

Other support measures include reduced tax and social security payments, as well as a payment holiday on rent and utilities.

Italy’s 5 million self-employed workers, about 23% of the workforce, are receiving less support. The government’s pledge to subsidize 80% of employee salaries for nine weeks does not apply to them. Instead, they will receive a one-off payment of €600 ($660) and tax relief.

Source link

Work

What Gig Workers Need To Know About Collecting Unemployment – WAMU 88.5

Published

on

By

Continue Reading

Work

When Will Illinois Gig Workers Get Unemployment Checks

Published

on

By

Gig workers and other self-employed, independent contractors in Illinois cannot look forward to getting unemployment checks anytime soon — despite a new federal law intended to help them out financially.

The $2 trillion federal stimulus bill that was approved on March 27 cleared the way to expand jobless benefits to many workers who had not previously been eligible, including the vast ranks of drivers for Uber, Lyft and other rideshare apps.

But nearly two weeks later, the officials who run the unemployment system for Illinois have not come up with a process to accept applications from such workers, much less get the promised money into their pockets.

The Illinois Department of Employment Security says it’s still too busy dealing with the record number of unemployment claims from other workers who are eligible for benefits under existing programs.

In a statement posted Tuesday on the department’s website, officials told gig workers not to bother applying at this point — and to refrain from calling to ask about the matter.

The new Coronavirus Aid, Relief, and Economic Security (CARES) Act sets aside federal funding for benefits to “independent contractors and self-proprietors” who once could not get benefits “but have become unemployed as a direct result of COVID-19,” officials said.

It’s not clear, though, when the state unemployment agency will be ready to start turning the funding from Congress into reality in Illinois. The U.S. Labor Department issued instructions to states on Sunday.

“Please do not call to inquire about these new federal programs,” according to the statement on the IDES website. “Our employees are processing applications for current benefits. Further details about the new federal programs and how to apply will be made available once they have been finalized.”

In a statement to WBEZ on Wednesday, a spokeswoman for IDES did not say how long the delay will last.

“The stimulus package will take time to implement,” said spokeswoman Rebecca Cisco.

She said state employees are fully occupied trying to field the “large increase in claims for regular unemployment benefits” since a stay-at-home order went into effect on March 20. Last week, for the second straight week, Illinois officials reported fielding a record number of new jobless claims.

It’s yet another blow to many working people who were having trouble making ends meet even before the pandemic, said Lenny Sanchez, a long-time Uber and Lyft driver who lives in Des Plaines.

“It’s a punch in the gut when you hear information like that or a response like that,” said Sanchez, 40, of the statement from IDES officials. “It’s like, ‘Hang on tight. We’ll give it to you whenever it’s ready.’ ”

Sanchez — who’s also an organizer and co-founder with an activist group called Gig Workers Matter — said many rideshare drivers were euphoric when the federal law was approved.

“Some drivers went ahead and started applying as soon as the news came out,” he said. “I’m definitely happy that gig workers were included.”

But he and other advocates for rideshare drivers said tens of thousands of families are suffering deeply because the new system has not been implemented yet in Illinois.

“Rideshare drivers are desperate right now, and they are scrambling to pay bills, pay mortgages,” said Bryant Greening, a lawyer with the LegalRideshare LLC. “It’s really a devastating and trying time for them.”

And it’s not just rideshare drivers who are eager to see the state get their unemployment checks in the mail.

Morgan Ione Yeager, a freelance photographer in Highland Park, said she was “appalled and disgusted” by the delays in implementing the aspects of the CARES Act designed expressly for workers like her.

“They’re really handling it poorly,” she said of the state’s response. “There’s no reason why it needs to be this difficult.”

Yeager said she has lost a lot of jobs with clients in the food, beverage, travel and hospitality industries after the pandemic prompted Illinois Gov. JB Pritzker and the governors of most other states to issue stay-at-home orders.

“All of my shoots have been cancelled for March and April at least,” she said. “I don’t really know when I’ll be able to start making money again.”

She said Illinois officials here should at least be able to provide some idea of when everybody covered by the federal stimulus bill will get what they were promised.

“There’s no timeline,” Yeager said. “There’s just no answers and no communication. It doesn’t seem like anybody in my situation is being taken care of at all.”

Dan Mihalopoulos is a reporter on WBEZ’s Government & Politics Team.

Source link

Continue Reading

Work

Gig and contract workers can apply for Georgia benefits Monday

Published

on

By

Georgia state officials said Wednesday that their systems will be ready next week: gig and contract workers as well as the self-employed can start applying for jobless benefits starting Monday.

Those workers – tens of thousands of them without paychecks since the virus-linked shutdowns began several weeks ago – have been told not to apply yet, even though they are now entitled to jobless benefits.

Gig, contractor and self-employed workers were not covered by unemployment insurance in virtually any state before passage of the huge federal spending bill March 27.

Many rushed to apply for benefit. 

But state systems were not prepared. Many of those newly-eligible workers were unable to apply at all or if they were, they were frustrated to find their applications rejected.

Meanwhile, the extension of benefits to those new classes of workers sent state officials across the country scrambling to reconfigure software and other processes.

At least in Georgia, the system will be ready to handle applications – starting Monday, said Kersha Cartwright, spokeswoman for the state Department of Labor

Workers who had already applied do not have to apply again, she said. 

Once an application is processed, it could still be several weeks before the worker receives his or her money. When the payments begin, workers will receive $600 extra as part of the new law.

Also urged to file applications next week are workers who had previously been told their work history or limited wages made them ineligible. They should also apply starting Monday, Cartwright said. “If you have been told you had a limited work history or you don’t have enough wages, you may qualify for the Pandemic Unemployment Assistance program.”

Even without the contractors and gig workers, the Labor Department has been inundated with claims for jobless benefits. Last week, the department reported it had processed 133,820 applications for unemployment insurance – three times more than the worst week of the Great Recession. This week’s report, due Thursday, is expected to be worse.