Why is Everyone on Unemployment Getting an Additional $600 During the COVID-19 Pandemic?

Published April 4, 2020

We have seen this question asked in several local groups “Why is everyone on unemployment getting an additional $600 during the COVID-19 pandemic even if they didn’t normally make that amount while working?”

It seems that the reason comes down to the antiquated IT systems in many to the unemployment offices across the country.

Below is the answer provided in the FAQ for the Provisions Related to Unemployment Compensation in the Take Responsibility for
Workers and Families Act:

Question: “Why are we providing flat benefits instead of adjusting the benefit to match each individual’s recent
wages?”
Answer: “Many state unemployment offices use antiquated IT systems and are currently understaffed and overwhelmed
with a flood of new claims. Although we provided funding for them to staff up and improve their systems, it
will take them time to hire and train new staff or make structural improvements. Using simplified eligibility
criteria and fixed benefit amounts will make it more feasible for state offices to process and pay claims quickly.”

Under this program, workers with reduced hours would also be eligible for Federal Pandemic Unemployment Compensation in the amount of $300 or more per week.