Stimulus Bill: 11 Week Extension of 100% Federal Financing of Workshare and $300 Bonus Means Worker Below $72,700 Income w 40% Reduction in Hours Gets 100% Income Replacement.

Buried in the proposed stimulus bill extension (Title 2, Subtitle A, Chapter 1, Sub Chapter 1, Section 207) is a provision that extends 100% federal funding of Workshare programs for 11 weeks, through March 14, 2021. 

Although there has been a drop off in Oregon participation following the loss of the $600 UI supplement last summer, the addition of the $300 UI supplement could rev up Workshare participation again, especially for public agencies who have used Workshare as a budget savings tool. 

For public agencies, this May 2020 posting by the Portland School District may be instructive. Simply substitute $300 for the $600 in the eight examples shown; in ALL of the eight examples employees would still retain 100% or MORE of the regular salary. (And not incidentally employers could cut their salary expenses by 20% to 40% for those 11 weeks). 

For 11 Weeks Workshare Workers with Annual Wages of Less than $72,700 and [max] 40% Reduction in Hours Would Replace 100% or More of their Wages.

The table pasted below show that a worker with annual earnings of $72,700 could replace 100% of their $1,398 in weekly wages over an 11 week period through a combination of regular unemployment insurance, the $300 bonus UI supplement, and a 40% reduction of their hours/ wages. 

If this sample worker's hours were reduced less than 40% (but not less than 20% according to Workshare rules) that same worker would receive MORE than 100% in income replacement. 

If their wage income was higher than $72,700 and they had a reduction in hours/wages of 40% they would receive LESS than 100% income replacement. 

After 11 weeks/March 14 the share of income replaced for Workshare participants would drop because of the loss of the $300 UI supplement. 

NOTE: $300 UI bonus [for all programs] is NOT retroactive. Bonus only applies to 11 weeks following effective date in the legislation. 

Existing  Oregon Workshare Claimants Could Get $19.2 Million In Additional UI Benefits

The most recent weekly report shows that 5,845 Oregon workshare continuing claims had been filed. After the effective date of the legislation those with continuing claims should begin to receive the $300 weekly supplement as soon as the Employment Department can tweak their administrative systems to authorize and make those payments. 

If all workshare claimants got additional $300 in benefits for the full 11 week period that is an additional $19.2 million for those claimants, over and above their reduced salaries and regular reduced unemployment insurance benefits.

Originally created and posted on the Oregon Housing Blog.