Previous Story
Labor: Health insurance benefits no bearing on PUA and FPUC programs
|
Posted on May 14 2020
The CNMI Department of Labor was notified that some employers are cancelling health insurance benefits to ensure employees with partial earnings qualify for the Pandemic Unemployment Assistance and Federal Pandemic Unemployment Compensation programs. These actions are not recommended or approved by CNMI DOL.
Generally, to be eligible for PUA and FPUC, an individual’s employment must be affected as a direct result of COVID-19. Any partial earnings must be reported and deducted from the eligible individual’s benefit amount. Pursuant to applicable law and Executive Order No. 2020-09, CNMI DOL will apply Hawaii Employment Security law to assess partial earnings.
Health insurance is considered a “benefit” or “perk” of employment. Health insurance does not count toward income or wages and has no bearing on eligibility under the PUA and FPUC programs. The department cautions employers against breaching employment contracts, violating employer responsibilities for CW-1 workers, and taking any action that may be investigated as fraud for unemployment benefits. (PR)
