Laid-off workers making more money collecting unemployment

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Is this unemployment policy back firing a bit? There are people admitting they are making more money being unemployed - I don't blame them if they can stay at home and enjoy the summer and make more money, why wouldn't you?

For people who’ve been laid off during the pandemic, the extra $600 a week the federal government is doling out on top of unemployment is a godsend. But for restaurateurs and hotel owners around New England looking to staff up for the summer tourist season — what there is of it, anyway — the bump is anything but a blessing.

While some workers are turning down jobs because they’re worried about getting sick or infecting family members or because they don’t have child care, others are flat-out telling employers they’re making more money safe at home collecting unemployment.

In the article - I love this "Another employer is slipping workers cash under the table so they can continue collecting.

Offering to come in part time is also a popular workaround, business owners said, because, in addition to their wages, workers can still collect the extra $600 a week, as well as a reduced amount of state unemployment."

Employees can’t refuse to work simply because they’re collecting more money in unemployment benefits, according to the Massachusetts Department of Unemployment Assistance, although employment experts note this is difficult to enforce. Those who refuse to work because of COVID-19-related risks to their health and safety, however, may be able to keep collecting.

One restaurant owner said that when three kitchen workers asked to be paid off the books so they could keep collecting unemployment, his back was against the wall. So he did it. “It’s either that or shut the place down,” said the owner, who asked not to be identified. “All of us are going to do what we have to do in order to survive.”

https://www.bostonglobe.com/2020/05/22/nation/with-laid-off-workers-making-more-money-collecting-unemployment-businesses-struggle-hire-summer/?et_rid=1745574855&s_campaign=globesmostpopular:newsletter&et_rid=1745574855&s_campaign=globesmostpopular:newsletter

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Type: Question • Score: 6 • Views: 472 • Replies: 10

@Linkat,

I found the idea of an extra $600.00 to be nuts from the start. There are many who will/have more now than while working! People at the low end of the pay scale are undoubtedly thrilled. Even though it is only temporary, (four months), it seemed not too well thought out. A person who doesn't get laid off or furloughed, is likely itching to get the axe. (at least for a few months).

And what happens if they aren't brought back? Many businesses have gone under and won't be rehiring. With the higher number of people jostling for the now fewer positions, this is going to be ugly.

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What disturbs me is, this type of thing gets the notice, but I don't see much protest when the ultra rich award themselves trillions at taxpayers expense.

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@edgarblythe,

edgarblythe wrote:

What disturbs me is, this type of thing gets the notice, but I don't see much protest when the ultra rich award themselves trillions at taxpayers expense.

I agree with Edgar on this one (sorry Edgar).

The government needs to pass out money in order to prop of the economy. In one sense it doesn't matter to whom the pass out money (at least as far as the economy is concerned).

Giving the money to working class unemployed people right now makes sense as long as the unemployment rate is high. Once the economy needs more workers, they are going to have to change this policy to incentivize people to go back to work.

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They say you get what you pay for. Pay people for not working and you get more people not working. Maybe it's justified by the present economy. Maybe

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@Sturgis,

Sturgis wrote:

Many businesses have gone under and won't be rehiring. With the higher number of people jostling for the now fewer positions, this is going to be ugly.

and some businesses are hiring more and anticipating even more. it feels like a real economy flip is in front of us. Every grocery store is hiring here - and looking to hire more and more shoppers for their online shopping programs. With schools not going back to the old formats in the foreseeable future (maybe never) schools are looking at more staff to manage rotating / shift classes - to do more cleaning and supervision.

Intrepid is a school bus driver. Doesn't look like the big old buses are going to be used in the same way. Maybe a lot more drivers with much smaller vehicles? ferrying students back and forth as they are on half day class shifts. Many more daycare/after school care spaces/staff will be required as people return to work and fewer children will be allowed in each space and only going half days.

Looks like a lot more service industry folks - but fewer of them on the hospitality side of things.

We're all twisting and spinning, trying to follow along.

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@ehBeth,

Interesting. Our local Denny's usually has one manager and one or two servers handling the take-out business. The parking lot is mostly empty, probably because people aren't spending 30 - 60 minutes at a table. Still, the cook(s) seem to be as busy as ever. It's kind of hard to tell how the business is doing.

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@roger,

We haven't reopened in-resto service yet. That may be a while. We are still at take-out/delivery only. Some places are using resto staff as delivery people instead of uber-type services. Hospitality/entertainment may never go back to pre-pandemic staffing.

At the same time, some restaurants can't keep up with the orders for take-out food as they have fewer people working in kitchens and are shutting down early. They're trying to figure out work-arounds for this.

The latest thing locally is some entertainers offering private online concerts in conjunction with meals delivered by a small group of restaurants. Apparently that is not going badly. There is some thinking that neighbours who used to broadcast basketball games on their garage may offer this so backyard neighbours can grill in their own yards, enjoy meals together but apart while watching the same mini concert.

Innovation's the way to go.

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I feel we have to find ways to make the economy work while being as safe as we can. There is bound to be a depression around the corner and we can't have people dying of exposure and hunger.

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I have no problem if a minority of underpaid workers are getting a little more. Let's not pretend that it's a huge windfall, but it's enough to cover rent and groceries and maybe a bit more. Rent payments mean landlords can pay their mortgages, all that spending ripples through the economy at a time when that's what the economy needs.

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@edgarblythe,

Quote:

What disturbs me is, this type of thing gets the notice, but I don't see much protest when the ultra rich award themselves trillions at taxpayers expense.

I agree with you wholeheartedly.

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