State of Iowa Ending Participation in COVID-Related Unemployment Programs Next Month

Citing a strong labor market, Iowa Governor Kim Reynolds announced yesterday that on June 12, 2021, the state will be ending its participation in federal COVID-related unemployment benefit programs. 

These enhanced unemployment benefits were made available under the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act of 2020, and provide certain supplemental unemployment benefits to individuals who became unemployed as a result of the COVID-19 pandemic. The last payable week for these programs in Iowa will be the week ending June 12, 2021, at which time:

1. The state will stop issuing $300 weekly supplemental payments to claimants under the Federal Pandemic Unemployment Compensation (“FPUC”) program.
2. Claimants who have exhausted their customary 26 weeks of unemployment benefit entitlement under state law and have been receiving unemployment under the federal Pandemic Emergency Unemployment Compensation (“PEUC”) program will no longer be eligible for these benefits after June 12, 2021. 
3. Iowa will no longer participate in the Pandemic Unemployment Assistance (“PUA”), which allowed benefits to independent contractors, self-employed, and others who are normally not eligible for unemployment benefits under state programs.
4. Claimants in Iowa who had both traditional W-2 and self-employment income will no longer be eligible for supplemental payments under the Mixed Earner Unemployment Compensation (“MEUC”) program.

Beginning June 13, 2021, employer charges for COVID-related unemployment benefits claims will no longer be waived.  The Director of Iowa Workforce Development, Beth Townsend, was quoted as saying, “The overwhelming message we receive from employers these days is the lack of workforce that is adversely affecting their ability to recover from the pandemic.”

For additional details view:

• Iowa Workforce Development press release
• Iowa Workforce Development Director Townsend’s recommendations to the Governor

If you have questions about the COVID-Related unemployment programs, please reach out to one of BrownWinick’s Employment & Labor attorneys for assistance. 

Meet the Author: