The trouble is self-employed workers, and independent contractors are not eligible for regular unemployment benefits. When Congress passed the CARES act at the end of March, these workers did become eligible.
Hair stylist Kami Hirschey says she had trouble getting answers about the payments. “Some people have said, it’s a state problem that I’ve spoken to, some have said federal problem you know I’m not blaming anybody I know it’s a nightmare for everybody.”
The last time Hirschey worked was the middle of March. By the last full week of April she still had received nothing in the way of unemployment benefits, even though she says she applied properly and spent hours on the phone trying to get through.
So it was a huge relief when news came that the state had created what was needed to set up essentially a brand new government program. It took just under a month to do that.
“It’s just something I don’t think any of us saw coming,” said State Representative Erin Koegel, DFL of Spring Lake Park. “The flexibility and innovation that the departments have been employing is amazing, but it does hurt for people who are on the margins there and need that money right away.”
The Minnesota Department of Employment and Economic Development says a lot was done in that time.
“In less than one month, DEED’s unemployment insurance team has created the infrastructure to implement this brand new program, determine eligibility, prevent fraud and adapt to the unprecedented challenges caused by COVID-19,” said DEED Commissioner Steve Grove. “While it will take us some time to determine eligibility for everyone who applies, we are working closely with the Department of Revenue to expedite that process.”
Payments being made to self employed workers will include back-payments starting when the worker became eligible. Since March 16, a record number of more than 540,000 people have applied for unemployment benefits in Minnesota.
