Schiff, Chu Seek Unemployment Relief for Independent Workers with Mixed Income Types

For Federal Pandemic Unemployment Assistance Pasadena’s congressional representatives, Adam Schiff and Judy Chu sent a letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy last week urging that future coronavirus response legislation ensure that independent workers with multiple types of income are able to access the same unemployment assistance that the CARES Act provides to those with more traditional employment arrangements.

“Due to the sporadic and unpredictable nature of work in film, television, theater, and music, many professionals in the entertainment industries earn a living through a combination of traditional (W-2) and independent (e.g. 1099) employment,” the Members wrote in their letter. “As a result, even if they have lost a substantial source of income due to coronavirus-related disruption of their independent work, these workers are ineligible for Pandemic Unemployment Assistance.”

While some workers may qualify for regular unemployment compensation if they have also lost their W-2 work, this can significantly under-measure their true earnings. And those whose W-2 income has continued but only represents a small portion of their earnings—for example, a worker who receives residual income from a previous project—are left with greatly reduced income yet are ineligible for any unemployment assistance.

In March, Schiff and members of congress from Los Angeles and other major entertainment driven areas around the country sent a letter to the speaker and minority leader.

In that letter Schiff requesting that emergency unemployment benefits be made available to freelancers, contractors, and other independent workers who have lost income as a result of the pandemic. The CARES Act included the new Pandemic Unemployment Assistance (PUA) program, extending benefits to independent workers who do not fully qualify for regular unemployment.

“As you consider additional legislation to respond to COVID-19, we urge you to consider language to ensure that independent workers with mixed sources of income are able to access the same relief to make up for lost work that the CARES Act provides to those with more traditional employment arrangements,” the letter reads.