DENVER (KDVR) — As Colorado’s economy starts to reopen, state bureaucrats will be forced to make some tough choices.
Government officials will need to determine who will continue receiving unemployment benefits and who should be returning to work during the pandemic.
Nearly 388,000 unemployment claims have been filed in Colorado since mid-March.
That figure exceeds all of the claims filed in Colorado over the previous three years.
“I started the process right away because I knew that it would be grueling,” said unemployed hair stylist Stephanie Raker.
After spending some 200 hours on phone calls, determination finally paid off for Raker. She’s actually making more money with unemployment.
She goes back to work next week.“I’d rather be working than trying to deal with unemployment,” she said. “Although I am making good money on unemployment. I would really rather just go back to work.”
The extra $600 a week added to unemployment benefits is federal money aimed at stimulating the economy.
“The state really has no control over that,” a state labor department official said on Thursday. “The $600 payment level was set by Congress.”
Due to the pandemic, benefits can continue for up to an extended 39 weeks. The unemployed have not had to prove they’re looking for work, but the state says that will soon change.
People with health issues and those caring for someone with COVID-19 can successfully refuse a return-to-work offer.
A claimant simply refusing to work due to a general fear of contracting COVID-19 is not a valid reason to continue unemployment benefits, according to state labor officials.
Those out of work must report any and all job offers and refusals. Employers will also report job offer refusals. With the phased reopening, the state has received nearly 600 of those reports.
An employee can successfully continue unemployment if an employer is not following health mandates, such as physical distancing and mask wearing.
Coloradans continue filing for unemployment, but at a slower rate for the fourth consecutive week. The crisis, though, is far from over.
“We’ve tripled our staff handling the claims,” said Cher Haavind with the Colorado Department of Labor and Employment. “We continue to have sustained pressure on the call center.”
Haavind says those returning to work on reduced wages may qualify for benefits to supplement reduced income.
Colorado’s unemployment fund is projected to dry up at the end of June or early July. After that, the state will borrow money from the federal government.
The Feds are offering zero interest loans to pay benefits through the end of 2020.