In California, and every other state in the US, the impact of the COVID-19 pandemic has gone well beyond the health crisis. It has dealt a huge blow on the finances of the average worker. There is some good news, however, as the Government has responded quickly. Through the Employment Development Department (EDD), the State of California has set up structures to help most people whose finances have been negatively affected by the ongoing COVID-19 outbreak. So, if COVID-19 has strained you financially, you may want to explore the following benefits programs to which you may be entitled:
- Eviction Protection
- Unemployment Insurance
- Food Assistance
- Mortgage Relief
- No Credit Score Changes
- Small Business and Employer Relief
Eligibility Requirements for California Unemployment Benefits
But before we go on, let’s briefly assess eligibility requirements to qualify for unemployment benefits. In California, there are three main requirements.
- Your previous paychecks must get to particular thresholds in the least
- As the relevant California law defines it, Your unemployment must not be due to any fault on your part
- You must be capable, available, and readily seeking a job.
- Eviction Protection
The eviction protection scheme is available to any Californian who suffers from a COVID-related hardship. In essence, if you make known your lack, it precludes you from eviction. The protection runs through February 2021. Declaring your hardship means ensuring you explain your economic condition to your landlord and you let them know how much you can disburse. It also extends to saving all your financial documents in case the need for proof arises.
And finally, pay as much rent as you can pay. The more rent you have overdue the more likely it is for an eviction to occur after the protections run out. You also may be eligible for supplementary county or city protections against being evicted.
- Unemployment Insurance
The unemployment insurance package is available to you if you experience a reduction of working hours or job loss. Essentially, depending on how much you have earned in the past, the insurance offers you cash payments. There is a max of 59 weeks of assistance as long as the federal CARES Act is in operation.
To make things better, on December 27, 2020, the Congress passed a bill into law to let the unemployed enjoy eleven (11) more weeks of financial benefits to Pandemic Unemployment Assistance (PUA) and Pandemic Emergency Unemployment Compensation (PEUC) claims. The new law also adds an additional $300 weekly to fixed Unemployment Insurance, PUA, and PEUC claims all of which apply to the unemployed in California as well as other states in the country.
Additionally, Californians would be able to enjoy an extra $600 each week added to any state-funded employment benefits. This, however, only happens if California gets through with the federal borrowing from which the State seeks to fund the relief package.
Through the Employment Development Department, any person who discovers they are eligible can apply for the assistance.
- Food Assistance
The Food Assistance program can be accessed by anyone who needs assistance in obtaining food for any reason whatsoever. The resources related to this relief include nonprofits and government programs such as food banks. The spate at which this program is available to you differs by the program made available by the government or nonprofits. Pantries and food banks are open and in function all over California. Other programs aside from the food banks include the Women, Infants, and Children (WIC) food benefits; the Pandemic EBT; School Meals; and a variety of others.
- Mortgage Relief
The mortgage relief scheme is accessible to landlords or homeowners who have three or less residential properties. If you declare financial hardship due to COVID-19, this relief can keep your property away from foreclosure. Based on the program, the length of protection often varies. If you enjoy a federally-supported mortgage, you can access this protection from foreclosure through the federal Coronavirus Aid Relief and Economic Security (CARES) Act.
These protections extend all over January 1, 2023. Where you do not have a federally-supported loan, the Homeowner Act offers protections for the small landlord and homeowner borrowers. Following that, you can reach out to your loan servicepersons to ask for forbearance. In a situation where your forbearance appeal is denied, your servicer must provide detailed tenable reasons for doing so. These protections extend over denials of forbearance made till 1st of April, 2021.
- No Credit Score Changes
The no credit score changes are accessible to all Californians. In operation, it routinely averts missing or late payment information from being pooled with agencies that report credit. Without any move on your part, the no credit score changes relief is available to you in California.
- Small Business and Employer Relief
The governments of California and the US seem to understand that the COVID-19 outbreak has rendered not just workers, but employers and small business owners distressed too. Most employees, small business owners, and even employers have been rendered unemployed at this dire time. In terms of helping employers and small business owners too, California is offering extensive help to everyone in that category affected by the pandemic, which includes grants, resources, as well as tax relief to help workplaces stay afloat during these times.
Here are some of the frequently asked questions about the financial benefits applicable to the unemployed in California:
- When may I receive the additional weekly $300 in unemployment benefits?
Starting from December 27, 2020, where you put a claim for weeks of unemployment, you will get the additional $300 weekly for 11 weeks at most. The time you’ll get this all has to do with the type of your claim and the time you certify for assistance.
- How long will the financial relief programs continue?
It’s uncertain how severe the COVID-19 will turn. Anyway, financial organizations have dedicated to essential relief and will consider the current conditions as well as the need for extended reliefs.
- Aside from EDD programs, what extra resources are available?
California provides resources such as food help, basic needs, health care, and more.
- What unemployment assistance is taxable?
Although these benefits are excused from Californian taxation, under the Federal tax return, they are taxable. The list includes – Unemployment Insurance benefits; Disability Insurance benefits; Pandemic Unemployment Assistance benefits; Disaster Unemployment Benefits; and Paid Family Leave benefits.
- Do mortgage protections apply to businesses?
Presently, the relief only applies to residential mortgages.
- What if I have an uncooperative mortgage servicer?
You can file a complaint with the Department of Business Oversight or call the Consumer Services Office at (866) 275-2677 or (916) 327-7585. Or you may reach out to us for legal counsel and advice to get to know what better or more appropriate response you need to give.
- How do I validate my identity for an unemployment right?
You can log on ID.me to verify your ID in Unemployment Insurance online.
You can learn more about your rights during the pandemic on the official CA government COVID19 financial help page. If you believe you have been wrongfully terminated or your workplace rights have been breached, our expert team of labor and employment attorneys at JLG Lawyers is here to help. You can book a Free Strategy Session today to speak with one of JLG Lawyers’ labor and employment experts about your situation.