Lawmakers Campaign To Add Provision For Independent Workers As Congress Discusses Second CARES Act
LOS ANGELES (CBSLA) — As Congress discusses the CARES 2 Act to bring more relief to struggling businesses and workers, two local lawmakers are campaigning to add a provision for independent workers with mixed-income — many of whom work in the entertainment industry.
Like many actors, Ben Hermes supplements his acting gigs with his day job as a freelance creative director for a digital marketing company.
"But it's been close to three years, July of 2017 was the very last day that I actually physically worked a W-2 day on a soap opera," Hermes said.
According to Hermes, he still receives small residual checks from time to time, meaning to the state, he is considered to be both a W-2 and a 1099 employee.
When he applied for the Pandemic Unemployment Assistance program or PUA for gig workers, he was told by the EDD that he didn't qualify.
"That I was awarded a W2 unemployment, regular unemployment with my W2 earnings, which were 1/7th the amount I make for a 1099."
The predicament of workers with mixed-income prompted Representative Adam Schiff and Representative Judy Chu to write a letter to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy.
"To include a fix for this, so that people that have non-traditional combinations of employment can make sure they can get a full benefit," said Schiff.
In the letter, the duo is urging Congress to add a provision in the CARES 2 Act for these workers.
"Those who are in this mixed status are getting less than they deserve," said Chu.
Schiff said workers should get credit for all income, regardless of classification.
"A fix would say that both these systems should consider the cumulative income for people, as well as lost income, for example, if they had a show coming up that didn't materialize because the show went away or the commercial went away because of the pandemic," Schiff said.
Actor Hope Shapiro makes a majority of her income as a caterer but her weekly unemployment benefit is only $83 because the system based her benefit on her sporadic acting jobs.
On top of that, the occasional residual check she receives keeps her from getting the additional $600 a week from the federal government.
"One week I got a residual for $111, which nobody can live on that but it knocked my entire benefit out because they don't consider you 1099 income and I didn't get the $600 either."
Schiff said Congress could could vote on a CARES 2 Act by the end of the week, but he said he doesn't expect round two to pass as quickly as round one.
