Tuesday, March 31, 2020

Portland Area Minimum Wage Workers Boosts CARES Act Unemployment Benefits 2-3 Times Their Wages--For 4 Months.

Just prior to passage of the CARES act there was a Senate dust up over the $600 temporary boost in unemployment benefits for workers laid off because of the coronavirus. 

Since unemployment benefits are state specific I thought it would be useful to see what short term and long term unemployment benefits would be for a half time and a full time worker at the Portland metro minimum wage. That Portland metro minimum wage was $10.75 until July 1, 2019 and $12.50 after.  For the covered period of employment used to estimate benefits I calculate the average wage as $11.19 an hour.

I went to the state employment benefit estimator website HERE and made the necessary inputs.  

My DRAFT calculation of the results in a PDF file are HERE and embedded below; I encourage feedback on any errors in calculation I may have inadvertently made.

Observations
Full Time Minimum Wage Worker
  • The worker's gross pay for the covered period was an average of $448 a week.
  • Through July 31st this worker would receive $902 a week in unemployment benefits, 202% of their average weekly wage.
  • After July 31st, this worker would receive $302 a week, 67% of their average weekly wage.
Half Time Minimum Wage Worker
  • The worker's gross pay for the covered period was an average of $224 a week.
  • Through July 31st this worker would receive $751 a week in unemployment benefits, 336% of their average weekly wage.
  • After July 31st, this worker would receive $151 a week in unemployment benefits, 67% of their average weekly wage.
  1. Workers don't choose whether to be unemployed, the employer does.
  2. Unemployed workers may lose employer provided health care and other benefits.
  3. Unemployment income doesn't count as earned income for the earned income tax credit
  4. Changes in income may impact other eligibility and the amount of other benefit programs and also income tax obligations.

Originally created and posted on the Oregon Housing Blog.
 

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