What Is Pandemic Emergency Unemployment Compensation (PEUC) and How to Apply

The Pandemic Emergency Unemployment Compensation is a temporary emergency program created under the CARES Act to help Americans affected by the COVID-19 pandemic. It was created to extend unemployment insurance by an additional 13 weeks after employment benefits are exhausted. The PEUC, alongside two other initiatives, Pandemic Unemployment Assistance (PUA) and Federal Pandemic Unemployment Compensation (FPUC), were created under the Coronavirus Aid Relief, and Economic Security (CARES) Act. The CARES Act of 2020 is a $2 trillion coronavirus emergency stimulus package that was signed into law on March 27, 2020, by President Trump.

Why the Pandemic Emergency Unemployment Compensation?

The drastic turn of events caused by the coronavirus pandemic has led to the shutdown of many states and businesses. As a result of this, many have been rendered financially handicapped and out-of-work for the next couple of months. This has caused an increase in the US unemployment rate and experts have predicted that the number of unemployed people in the US may hit 20 million by July 2020.

By all implications, millions of unemployed Americans will be dependent on unemployment insurance to help cover, groceries, toiletries, rent, and other basic needs as the need arises, over the next couple of months.

As it is, many may exhaust their unemployment benefits and still remain unemployed. In response to that, the PEUC will allow people who have exhausted their unemployment insurance benefits to enjoy up to 13 extra weeks on the conditions that they “are able to works, available to work, and actively seeking work,” according to the CARES Act.

Federal law also allows states to amend their laws and be flexible in processing applications in meeting the PEUC eligibility requirements. Such that an applicant is “actively seeking work” but is unable to find work as a result of the COVID-19 pandemic. Individual states are also responsible for providing PEUC guidance on reporting requirements.

States can amend their laws on unemployment insurance benefits provided that they are related to specific COVID-19 related situations that occur when:

• A worker can no longer go to work as a result of workplace shutdown caused by COVID-19

• A worker is currently quarantined but anticipates going back to work once the quarantine is over

• An individual stops work and is directly or indirectly affected by COVID-19

• An individual quits work to care for a family member who has been diagnosed with COVID-19

How to Apply for the Pandemic Emergency Unemployment Compensation (PEUC)?

To qualify for the PEUC program, applicants must have already exhausted their regular unemployment insurance benefits and seek the extra 13 weeks of benefits. Only individuals who are actively engaged in looking for work that would be eligible to benefit from the PEUC program.

The CARES Act states that “a State shall provide flexibility in meeting such [work search] requirements in case of individuals unable to search for work because of the COVID-19, including because of illness, quarantine, or movement restriction.” Therefore, it is the responsibility of individual states to provide guidance on how to apply for the PEUC program. Many states prefer all applications to be sent online, especially in such a time as this. You can check your state’s unemployment insurance website for more information.

Also, in addition to the PEUC weekly benefits, individuals will also be eligible for the weekly $600 payment under the Federal Pandemic Unemployment Compensation (FPUC) program.