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Bromley Quoted in NBC News on COVID-19 Support for Gig Workers and Freelancers Under the PUA

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Leader of Manatt’s entertainment transactions and finance practice Jordan Bromley spoke with NBC News about the number of gig workers and freelancers that do not qualify for aid under the CARES Act’s Pandemic Unemployment Assistance (PUA) program because they received some income through traditional employment in the past year. According to Bromley, the limitations found in the PUA, which prohibit individuals from receiving both traditional unemployment and PUA benefits, has had and will continue to have an especially large impact on musicians and other members of the music industry, which was “one of the first to stop, and [will] be the last to start.” Bromley also predicts that the need for PUA relief for those in the industry will not be alleviated until mid-2021, saying, “we’re looking at summer 2021 before the industry is fully engaged again, and that is an entire revenue stream for almost all these performers that is gone, so these benefits are their only opportunity for relief.”



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Labor of Law: McDonald’s Confronts Ousted CEO | New Gig Ruling in California | Covid-19 Headlines: Returning to Work | Who Got the Work

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Welcome to Labor of Law, our labor and employment dispatch on the big cases, issues and trends. We love your feedback. Please send thoughts and suggestions to Mike Scarcella at [email protected]. Follow Mike on Twitter @MikeScarcella. Thanks for reading!

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The extra $600 in weekly unemployment benefits expired — but gig workers and self-employed Americans still qualify for benefits

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For the first time during the pandemic, weekly jobless claims dipped below 1 million, but there are likely many more Americans who qualify for unemployment benefits who didn’t apply.

When the $2 trillion CARES Act passed in March, self-employed, independent contractors, gig workers and other nontraditional workers became eligible for unemployment benefits. Even though the federally-funded $600 a week in enhanced unemployment benefits, which was also part of the CARES Act, expired on July 31, these types of workers can still collect state-level unemployment benefits through the end of the year.


‘There is definitely a chance that the loss of the $600 is changing claimant behavior’


— Michele Evermore, a senior policy analyst at the National Employment Law Project

This nuance may have been lost in translation when the $600 benefit expired, said Michele Evermore, a senior policy analyst at the National Employment Law Project, an advocacy organization focused on workers’ rights.

“There is definitely a chance that the loss of the $600 is changing claimant behavior,” she said, meaning that unemployed workers may have wrongly assumed that they would no longer be eligible for unemployment benefits after July 31. A total of 10 million Americans have already been approved for unemployment benefits who otherwise would have been ineligible if not for the CARES Act, Evermore said.

Unemployment benefits are based on how much money a worker earned while they were employed. For traditional salaried workers, that amount gets automatically reported to state workforce agencies. But self-employed and gig workers often lack the ability to provide an exact net earnings amount, Evermore said.

“But if they can prove that they worked and got income or were offered a job and that job offer was rescinded due to COVID-19,” she said, they can collect what amounts to half of the average weekly unemployment benefit in their state.


In all 50 states and Washington D.C., the minimum amount is over $100 a week

In many cases that will enable them to collect more in unemployment benefits than they would if they had a traditional job where their earnings were reported automatically, Evermore told MarketWatch.

At a minimum, gig workers, independent contractors and other self-employed workers can collect the equivalent of the average weekly benefit in their state. In all 50 states and Washington D.C., the minimum amount is over $100 a week, according to the Department of Labor. That’s especially important because it means these types of workers will be eligible for an additional $300 a week under President Donald Trump’s executive order. (Anyone who gets at least $100 in unemployment benefits from their state would qualify for the extra $300.)

However, it could be some time before these workers actually get those benefits. State governors have said that state workforce agencies are not properly equipped to quickly implement the changes Trump’s executive order calls for.

Evermore said she hopes that Congress will consider extending the period of time gig and self-employed workers can collect unemployment benefits, but she is “worried we will reach a deadlock on this in December like we are seeing now with the $600.”

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DoorDash: Injunction In CA Over Gig Worker Status

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DoorDash, the San Francisco-based prepared food delivery service, could be the latest gig company to face an injunction to treat its workers as employees, not independent contractors.

The Financial Times reported San Francisco District Attorney Chesa Boudin has filed for a preliminary injunction against the country’s largest food delivery service that would require the company to reclassify its workers as employees.

“We are seeking an immediate end to DoorDash’s illegal behavior of failing to provide delivery workers with basic workplace protections,” Boudin said in a statement. “All three branches of California’s government have already made clear that these workers are employees under California law and entitled to these important safeguards.”

If Boudin’s request is approved by the court, the ruling would apply to DoorDash workers in California. A reclassification of workers would mean gig workers with healthcare benefits, sick pay, paid leave and other benefits not currently available to them.

“In the midst of one of the deepest economic recessions in our nation’s history, today’s action by the district attorney threatens billions of dollars in earnings for California Dashers and revenue for restaurants that rely upon sales from delivery to keep their businesses open,” DoorDash told FT in a statement.

The action against DoorDash comes days after a California judge granted a similar injunction against Uber and Lyft at the request of California Attorney General Xavier Becerra.

On Monday (Aug. 10), California Superior Court Judge Ethan Schulman said the ride-share companies have until August 20 to reclassify their drivers. The companies are expected to appeal. The injunction requires Uber and Lyft to stop classifying their drivers as independent contractors pending further action by the court.

In response, CEO Dara Khosrowshahi told MSNBC this week that it may have to close temporarily.

“If the court doesn’t reconsider, then in California, it’s hard to believe we’ll be able to switch our model to full-time employment quickly,” she told the network.

Like Uber and Lyft, DoorDash said most of its workers prefer to be contractors, arguing that flexibility over working hours and location is impossible under an employee model.

In November, voters will be asked to approve Proposition 22, a ballot question that would repeal the gig law.

FT reported DoorDash has contributed $30 million to a joint fund supporting the ballot initiative. Uber and Lyft have each put in the same amount, along with contributions from other gig economy groups. The total backing for the “Yes on 22” campaign now stands at more than $110 million, the newspaper reported.

The opposition has only raised $1.6 million, according to the filings with the state of California.

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New PYMNTS Report: The CFO’s Guide To Digitizing B2B Payments – August 2020 

The CFO’s Guide To Digitizing B2B Payments, a PYMNTS and Comdata collaboration, examines how companies are updating their AP approaches to protect their cash flows, support their vendors and enable their financial departments to operate remotely.



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