Quirk in coronavirus relief law gives full $600 a week even to workers facing only cut hours

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Quirk in coronavirus relief law gives full $600 a week even to workers facing only cut hours
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Congress pushed employers to cut hours rather than lay off workers. Now some may get more in federal aid than if they had worked the lost hours.

California workers who see their hours cut as little as 10% due to the coronavirus outbreak are eligible to receive the entire $600-a-week federal subsidy offered in the $2-trillion federal rescue package, state officials and employment experts say.

“If employers knew about this option for their workers, there’s a lot of free money floating around, and it’s shocking that so few people take it up,” said Till von Wachter, a UCLA economics professor. “There are substantial financial gains and opportunities for workers in the current environment, and it’s just crazy that nobody’s taking it up.

“As long as you are receiving at least $1 in unemployment insurance, you are eligible for the $600,” Employment Development Department spokesman Aubrey Henry said.That came as a surprise to Sunil Kohli, 59, chief executive of Health Plus Inc. in Chino, whose company was recently approved for California’s work-sharing program. The firm, which manufactures dietary supplements, has cut the hours of 19 of its 28 employees by 20%. He assumed the federal subsidy would be prorated by the same amount.

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