California considers unprecedented $25 billion recovery fund and rental relief

From today’s Los Angeles Times:

Two unprecedented proposals to help Californians weather the fiscal storm unleashed by the coronavirus crisis are expected to be unveiled Tuesday by Democrats in the state Senate — one to help struggling renters, the other to create a $25-billion economic recovery fund by issuing long-term vouchers to those willing to prepay their future state income taxes.

Taken together, the ideas suggest lawmakers are willing to launch never-before-tried experiments to avoid the unpaid debts and deep cuts to government services that resulted from the Great Recession more than a decade ago.

“We need some short-term assistance,” said Senate President Pro Tem Toni Atkins (D-San Diego) in an interview with The Times on Monday. “But we’ve got to be thinking long term on how to do this in a very strategic way.”

The proposals are scheduled to be formally unveiled Tuesday morning in Sacramento, two days before Gov. Gavin Newsom sends lawmakers a plan to erase a short-term budget deficit that could total more than $54 billion.

Neither the renter-assistance program nor the economic recovery fund would have a direct effect on the state budget in the coming weeks and months. Still, lawmakers believe both ideas could boost California’s shattered economy.

The unconventional effort to help renters would ask landlords to forgive rent payments in exchange for equally sized tax credits spread out over a 10-year period starting in 2024. The tax credits would be transferable, meaning the property owner could sell them to an outside investor and get cash immediately.

“This is a substantive proposal that protects those who are struggling to afford their rent and also keeps rental properties from going into foreclosure,” state Sen. Steven Bradford (D-Gardena) said. “This equitable strategy will keep people housed.”

Some local governments have already stepped up to address concerns about renters being evicted during the public health crisis, promoting a variety of rental assistance programs. Pending legislation at the state Capitol also seeks to prevent evictions during the coronavirus state of emergency, which was declared by Newsom in March and has no targeted end date.

Read the complete article here.

Freelancers can get unemployment pay for jobs lost to coronavirus

From today’s Los Angeles Times:

New coronavirus laws provide a litany of benefits to the self-employed, freelancers and workers in the gig economy. But what are the benefits, and how do you claim them? Here are some answers explaining how the laws impact freelancers.

I lost my part-time gig because of the coronavirus lockdown. Can I claim unemployment insurance?

Yes. The federal CARES Act creates a temporary Pandemic Unemployment Assistance program, which provides unemployment insurance coverage to self-employed individuals, independent contractors and those with limited work history. (You must be available for work but unable to do your job as the result of the pandemic.) All of these individuals were barred from claiming state unemployment insurance benefits prior to the passage of this law.

How much will I get?

That depends on where you live. Each state operates its own unemployment insurance program. Requirements and pay-out ratios vary from state to state. For instance, California’s unemployment insurance program provides about 46% of working wages, up to set limits. Maximum unemployment benefits amount to $450 a week.

Thus, if you previously earned $1,000 a week ($4,000 a month), you’d get $450 in weekly unemployment coverage, or $1,800 per month from the state of California. The new CARES Act adds a federal payment of $600 a week to that. So, this hypothetical worker could get as much as $4,200 a month.

However, if you live in Alabama, the state’s maximum weekly benefit caps out at $275. Thus, an unemployed worker in Alabama would receive a top benefit of $1,100, plus $600 weekly from the CARES Act, for a total of $3,500.

Read the complete article here.

A 3,000% jump in jobless claims has devastated the US job market

From today’s CNN Online:

The last three weeks have marked one of the most devastating periods in history for the American job market, as first-time claims for unemployment benefits have surged more than 3,000% since early March. Businesses continue to lay off and furlough workers amid the coronavirus outbreak.6.6 million US workers filed for their first week of unemployment benefits in the week ending March 28, according to the Department of Labor — a new historic high.

That was far greater than economists had expected, and more than 3,000% the pre-pandemic levels. Unemployment claims at this level suggest a severe job market decline hardly any American alive has ever seen in their lifetimes.

Economists characterized the increase as “monstrous,” “stunningly awful,” and “a portrait of disaster.”Including the prior week’s 3.3 million initial claims, Americans have filed nearly 10 million jobless claims in the last two weeks alone. That corresponds to roughly 6% of America’s 165 million strong work force, which in turn implies a 9.5% unemployment rate, according to Citi economist Andrew Hollenhorst.

Read the complete article here.

Federal government is weighing an infrastructure push to create jobs

From today’s New York Times:

Fears are growing that the global downturn could be far more punishing and long lasting than initially feared — potentially enduring into next year, and even beyond — as governments intensify restrictions on business to halt the spread of the pandemic, and fear of the virus impedes consumer-led economic growth.

“This is already shaping up as the deepest dive on record for the global economy for over 100 years,” said Kenneth S. Rogoff, a Harvard economist and co-author of “This Time Is Different: Eight Centuries of Financial Folly,” a history of financial crises. “Everything depends on how long it lasts, but if this goes on for a long time, it’s certainly going to be the mother of all financial crises.”

Stocks on Wall Street tumbled, with the S&P 500 closing down more than 4 4 percent, bringing its decline over two days to 6 percent, as investors braced for worsening economic conditions ahead.

The economic readings continue to worsen as well. On Wednesday, surveys of manufacturing and factory activity in the United States, Europe and Japan showed activity slowing to levels not seen in a decade or more. In the United States, factory orders and employment measures fell to their lowest since 2009, the Institute for Supply Management said.

In Washington, there was growing concern that the $2 trillion stimulus package enacted last week could be insufficient. Democrats and Republicans in Congress, as well as President Trump, are increasingly looking toward enacting a huge new infrastructure plan that could create thousands of jobs.

Read the complete article here.

Some workers won’t qualify for some unemployment benefits in relief package

From today’s CNBC News Online:

The $2 trillion coronavirus relief package President Donald Trump signed into law Friday significantly expands unemployment benefits for out-of-work Americans.

The law pays laid-off and furloughed workers an extra $600 a week, for up to four months, and extends existing state benefits by 13 weeks. It also offers jobless benefits to previously ineligible groups, such as gig workers and freelancers. Nearly 3.3 million people filed first-time claims for unemployment last week — shattering the previous record, set in 1982, by around 2.6 million people, according to the Labor Department.

“It truly is, in a lot of ways, a very generous package,” said Chris Moran, a partner in the labor and employment practice group at law firm Pepper Hamilton in Philadelphia. Yet, some could receive smaller payments than others or miss out entirely. Here are some of those groups.

Tip workers

Workers who derive a big chunk of their paychecks from tips, like waiters and bartenders, may get smaller unemployment checks than they hope to. It largely depends on whether an employer reports those tips as income. States determine the size of unemployment checks based on a worker’s prior wages, generally over the last four quarters.

Gig, self-employed workers without pay records

While gig and self-employed workers are newly eligible for unemployment benefits, they may not qualify if they don’t have the proper work and pay documentation. This will largely depend on forthcoming guidance from the Labor Department about the kinds of acceptable documentation, and states’ interpretation of that guidance — currently among the biggest wild cards in the unemployment expansion, experts said.

Read the complete article here.

Coronavirus to cost California 125,000 hotel jobs trade group says

From today’s Los Angeles Times:

Struck by a severe drop in travel demand, California’s hotel industry is expected to lose more than 125,000 jobs in the next few weeks, more than any other state, an industry trade group estimated Monday.

The hotel industry in the Golden State is expected to be hit hardest by the coronavirus outbreak because California has the most hotel jobs — about 285,000 — according to the American Hotel and Lodging Assn. trade group.

In addition to the loss of 125,000 hotel jobs, another 414,000 jobs that are supported by the hotel industry, such as waiters, busboys, bartenders and limousine drivers, could disappear in the next few weeks, the group said.

Only last month, the average occupancy rate — the percentage of hotel rooms filled — was 62% across the country, according to STR Global, a Tennessee company that tracks hotel data. By mid-March, the average occupancy rate nationwide had dropped to 53%.

To break even, hotels need to have an occupancy rate of 41% to 63%, depending on the type of hotel, according to industry analysis. Upscale hotels need a higher occupancy rate to pay for extra amenities, such as room service, valets and concierges, while economy hotels can break even with a much lower occupancy rate.

Because of the pandemic, hotels in some cities, including Seattle; San Francisco; Austin, Texas; and Boston, are reporting occupancy rates below 20%, with some individual hotels already shutting down, according to the American Hotel and Lodging Assn.

“The impact to our industry is already more severe than anything we’ve seen before, including September 11th and the Great Recession of 2008 combined,” Chip Rogers, chief executive of the trade association said in a statement Monday.

The lodging industry requested the federal government provide $150 billion in financial aid to keep the hotel industry afloat during the crisis. That is in addition to the $100 billion requested by other segments of the travel industry, such as convention centers, theme parks and tour companies.

Read the complete article here.

More than half of American jobs are at risk because of coronavirus

From CNN News Online:

A week ago, Darrin Dixon wasn’t all that concerned about the coronavirus. Now he’s losing sleep over the prospect that the virus could cost him his food truck and catering business, which provides three jobs, including his own. Sales at Dixon’s food truck, KC Cajun, plunged this week as businesses in downtown Kansas City, Missouri, where he’s based, have shifted to working from home. His catering business is having cancellations like he’s never seen before.

“I know I’m stressed. I’ve had sleepless night. It’s just scary because we don’t know what we’re going to do,” said Dixon. His situation is a harbinger of the problems facing the US economy from the coronavirus, which could be far deeper and more widespread than they initially appeared. And because it will hit small businesses like Dixon’s particularly hard, it could take years for the economy to fully recover — even after the coronavirus crisis is long over. It’s not just jobs at airlineshotelsamusement parks and sporting events that are at risk. It’s the food trucks that serve office workers or school students who are now staying home. It’s the dry cleaners who clean the dress clothes that will not be worn as workers stay away from their offices. It’s hair stylists, dog walkers, babysitters, restaurant workers and others who provide services that people no longer need or can’t afford.

More than half of US jobs at risk

Nearly 80 million jobs in the US economy are at high or moderate risk today, according to analysis in the last week from Moody’s Analytics. That’s more than half of the 153 million jobs in the economy overall. That doesn’t mean that all those jobs will be lost. But it’s probable that as many as 10 million of those workers could see some impact to their paychecks — either layoffs, furloughs, fewer hours or wage cuts, said Mark Zandi, chief economist at Moody’s Analytics.

Of those 80 million jobs, Moody’s Analytics projects that 27 million are at high risk due to the virus, primarily in transportation and travel, leisure and hospitality, temporary help services and oil drilling and extraction. Maybe 20% of those workers, comprising about 5 million jobs, will be affected, Zandi said. The other 52 million jobs are judged to face “moderate risk.” They are in areas such as retail, manufacturing, construction and education. Some 5 million of those workers are could be unemployed or underemployed.

Read the complete article here.

The Great Google Revolt

From today’s New York Times:

Laurence Berland had just gotten out of the subway in New York, some 3,000 miles from his desk in San Francisco, when he learned that Google had fired him. It was the Monday before Thanksgiving, and the news came to him, bad-breakup-style, via email. “Following a thorough investigation, the company has found that you committed several acts in violation of Google’s policies,” the note said. It did not elaborate on what he had done to violate these policies.

Berland, an engineer who had spent more than a decade at the company, had reason to expect he might be fired. He had been suspended a few weeks earlier after subscribing to the open calendars of several senior Google employees, whom he suspected of meeting with outside consultants to suppress organizing activity at the company. During a subsequent meeting at which he was questioned by Google investigators, he had the feeling that they were pressuring him to say something that could be grounds for termination. Then, the Friday before he was fired, he had spoken at a well-publicized rally of his co-workers outside Google’s San Francisco offices, accusing the company of silencing dissent.

Even so, the timing and manner of his dismissal surprised him. “I thought they’d do it when all the media attention died down,” he said. “When the suspensions and the rally were no longer on people’s minds.” Instead, at a moment when the spotlight was shining brightly, Google had escalated — as if to make a point.

Berland was one of at least four employees Google fired that day. All four were locked in an ongoing conflict with the company, as they and other activists had stepped forward to denounce both its treatment of workers and its relationship with certain customers, like U.S. Customs and Border Protection.

Berland’s terminated colleagues were even more shocked by the turn of events than he was. Rebecca Rivers, a software engineer based in Boulder, Colo., was dismissed over the phone after accessing internal documents. Rivers had only recently come out as transgender and was pursuing a medical transition. “I came out at Google expecting to stay at Google through the entire transition,” she said. “It’s terrifying to think about going to a job interview, because I’m so scared of how other companies treat trans employees.”

Sophie Waldman and Paul Duke, the two other Googlers fired that day, had not received so much as a warning, much less a suspension. Though they had been questioned by corporate security two months earlier about whether they had circulated documents referring to Customs and Border Protection contracts, they had been allowed to continue their work without incident. Waldman, a software developer in Cambridge, Mass., said she was given a 15-minute notice before she was summoned to the meeting where she was fired; Duke, an engineer in New York, said an invitation appeared on his calendar precisely one minute beforehand. Security officials escorted him out of the building without letting him return to his desk. “I had to describe to them what my jacket, scarf and bag looked like,” he said.

Read the complete article here.

Worker rights are shaping up a key issue in 2020. Who has the best ideas?

From today’s New York Magazine:

Never before have I seen Democratic candidates do so much to woo workers and win over union leaders. Elizabeth Warren kicked off her campaign at the site of the famous 1912 Bread and Roses textile strike in Lawrence, Massachusetts. Julián Castro marched in Durham, North Carolina, with fast-food workers demanding a $15 wage, while Pete Buttigieg spoke outside Uber headquarters in San Francisco alongside drivers demanding to be considered employees. Joe Biden held his first official campaign event at a Teamsters union hall in Pittsburgh. Kamala Harris has called for a raise averaging $13,500 for the nation’s schoolteachers, while Bernie Sanders has bolstered labor’s cause by using his email lists to urge supporters to join union picket lines.

Why all this sudden attention and affection for workers and unions — far more than I’ve ever seen during my nearly 25 years of writing about labor? Part of it is that this year’s Democratic candidates are doing what any smart politician would do when the field is so large — court one of the party’s largest constituencies, i.e., unions and their members. Part of it is that the candidates see that something is seriously broken in our economy: that income inequality, corporate profits, and the stock market have all been soaring while wages have largely stagnated for decades. Also, Democrats realize that a big reason Hillary Clinton lost in 2016 was that she didn’t show enough love to labor. The field seems to recognize that if a Democrat is going to win the presidency in 2020, the surest route is to win back the three longtime union strongholds — Michigan, Pennsylvania and Wisconsin — that were key to Donald Trump’s victory. So the candidates have loosed a flood of pro-worker ideas, not just to make it easier to unionize, but to extend paid sick days and family leave to all workers, provide protections to pregnant workers, and safeguard LGBTQ+ Americans from discrimination on the job.

Four of them — Bernie Sanders, Beto O’Rouke, Pete Buttigieg, and Cory Booker — have put forward remarkably detailed platforms of pro-worker and pro-union proposals, while Elizabeth Warren’s elaborate plan on trade goes far beyond what many union leaders have called for. Andrew Yang says his universal basic income will be a boon for workers, providing a lifeline to those who lose their jobs because of artificial intelligence and robots. Biden has been vague so far on labor matters, calling himself a union man and saying he supports a $15 minimum. Booker has introduced a fairly radical bill, the Worker Dividend Act, which would require corporations that do stock buybacks to pay out to their employees a sizable chunk of the money going to the buyback.

Considering how many candidates there are and how many proposals and speeches they’ve made, it’s hard to keep track of who stands for what — and which plans are substantively the most pro-labor. Below, I give grades to the Democratic front-runners, based not just on the positions they’ve espoused during the campaign, but also on their track records. (Some candidates seem to have discovered the cause of workers only after announcing that they were running for the presidency.)

Read the complete article here.

Thousands of Furloughed Federal Workers File for Unemployment Benefits

From today’s New York Times:

On the second day of the year, Danielle Miller gave up on the federal government.

Furloughed from her Internal Revenue Service job near Cincinnati and fearful of running out of money during the partial government shutdown, she filed for unemployment benefits: $414 a week, about $200 less than usual.

“Once Christmas came and went, after New Year’s, I was like, I can’t go on,” said Ms. Miller, a single mother who has worked for the I.R.S. for almost 14 years. She spent part of this week calculating when her first unemployment check would arrive. “It’s disappointing, and it’s frustrating,” she said. “I have a job.”

The shutdown, the longest on record, is prompting tens of thousands of federal employees to seek jobless benefits. As the impasse meanders through its fourth week and more bills come due, their numbers have been growing.

On Thursday, two days after the White House doubled its projections and warned that the shutdown was reducing quarterly economic growth by 0.13 percentage points per week, the Labor Department reported 10,454 initial claims by federal workers for the week that ended Jan. 5, doubling the previous week’s figure. Thousands more have applied since, state officials said.

Read the complete article here.