Back to Work Bonus Act
Bill: H.R.3479 | Sponsor: Rep. Budd, Ted (R-NC)
Policy area: Labor and Employment

Summary:
Back to Work Bonus Act
This bill eliminates Federal Pandemic Unemployment Compensation, provides for direct payments to individuals who begin work with a new employer, and otherwise addresses COVID-19 pandemic-related unemployment benefits.
Specifically, the bill allows states to provide a direct payment to individuals who are eligible for Federal Pandemic Unemployment Compensation (an additional payment for those already receiving a weekly unemployment benefit) but who lose that eligibility subsequent to the bill's enactment due to commencing employment with a new employer. An individual must continue employment with the new employer for at least 4 weeks to be eligible for the $900 payment under the bill. This bonus payment is only available for nongovernmental employment commencing prior to August 14, 2021. Payments made by states under the bill are eligible for 100% federal reimbursement in the same manner as Federal Pandemic Unemployment Compensation.
The bill also ends Federal Pandemic Unemployment Compensation upon enactment. Currently, it is set to end September 6, 2021.
Finally, the bill modifies work search requirements for claimants to receive Pandemic Unemployment Assistance so that an individual is excused from current availability or ability to work requirements for reasons related to COVID-19 only if the individual (1) has an active COVID-19 infection, (2) is ordered quarantined, or (3) has caregiving duties due to a COVID-19 infection or quarantine. (Pandemic Unemployment Assistance is a temporary federal program for individuals who are not otherwise eligible for unemployment benefits and are unemployed, partially employed, or unable to work for reasons related to COVID-19.)

To incentivize American workers to seek and accept jobs, to aid the 
economic recovery by converting Federal pandemic emergency unemployment 
    compensation into back to work bonuses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Back to Work Bonus Act''.

SEC. 2. BACK TO WORK BONUSES.

    (a) In General.--Section 2104(b) of the CARES Act (15 U.S.C. 
9023(b)) is amended--
            (1) by redesignating paragraph (4) as paragraph (5); and
            (2) by inserting after paragraph (3) the following:
            ``(4) Back-to-work bonuses.--
                    ``(A) In general.--Any agreement under this section 
                may also provide that the State agency of the State may 
                make a lump sum payment to each individual who--
                            ``(i) was eligible for Federal Pandemic 
                        Unemployment Compensation under paragraph (1) 
                        for--
                                    ``(I) any week beginning after the 
                                date of enactment of the Back to Work 
                                Bonus Act; and
                                    ``(II) at least 4 weeks immediately 
                                preceding the week under clause (I);
                            ``(ii) is no longer eligible for Federal 
                        Pandemic Unemployment Compensation under 
                        paragraph (1) (as determined by the State), as 
                        a result of earnings due to commencing 
                        employment with an employer by whom the 
                        individual has not been employed during the 
                        preceding 6 months; and
                            ``(iii) as verified by the individual's 
                        employer pursuant to subparagraph (E)--
                                    ``(I) has been employed by a non-
                                governmental employer throughout the 
                                qualifying period; and
                                    ``(II) remains employed with an 
                                intent to continue such employment.
                    ``(B) Amount.--A payment made to an individual 
                under this paragraph shall be paid in a lump sum $900.
                    ``(C) Qualifying period.--For purposes of this 
                paragraph, the term `qualifying period' means, with 
                respect to an individual, a period--
                            ``(i) beginning on the date the individual 
                        commenced employment as described in 
                        subparagraph (A)(ii); and
                            ``(ii) extending at least 4 consecutive 
                        weeks from such date.
                    ``(D) Duration.--A lump-sum payment may not be made 
                to any individual under this paragraph with respect to 
                a qualifying period beginning on or after August 14, 
                2021.
                    ``(E) Employer verification required for lump-sum 
                payment.--Before making a lump-sum payment to an 
                individual pursuant to this paragraph, a State agency 
                shall require verification from the individual's 
                employer--
                            ``(i) of the individual's employment 
                        status;
                            ``(ii) of the wages paid to the individual 
                        during the applicable qualifying period; and
                            ``(iii) of the hours worked by the 
                        individual during the qualifying period.
                    ``(F) Limitation.--A State may not provide more 
                than 1 lump-sum payment under this paragraph to an 
                individual.
                    ``(G) Special rule.--A payment made pursuant to an 
                agreement under this paragraph shall not be considered 
                to violate the withdrawal requirements of section 
                303(a)(5) or section 3304(a)(4) of the Internal Revenue 
                Code of 1986.''.
    (b) Conforming Amendments.--Section 2104 of the CARES Act (15 
U.S.C. 9023) is amended--
            (1) in subsections (d) and (f), by inserting ``, payments 
        under subsection (b)(4)'' after ``Federal Pandemic Unemployment 
        Compensation'' each place it appears; and
            (2) in subsection (g)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(3) the purposes of the preceding provisions of this 
        section, as such provisions apply with respect to payments 
        under subsection (b)(4), shall be applied with respect to 
        unemployment benefits described in subsection (i)(2) to the 
        same extent and in the same manner as if those benefits were 
        regular compensation.''.

SEC. 3. SUNSETTING FEDERAL PANDEMIC UNEMPLOYMENT COMPENSATION.

    Section 2104(b)(3)(A)(ii) of the CARES Act (15 U.S.C. 
9023(b)(3)(A)(ii)) is amended by striking ``September 6, 2021'' and 
inserting ``the date of enactment of the Back to Work Bonus Act''.

SEC. 4. STRENGTHENING WORK SEARCH REQUIREMENTS.

    (a) Modifying Pandemic Unemployment Assistance.--Section 
2102(a)(3)(A)(ii)(I) of the CARES Act (15 U.S.C. 9021(a)(3)(A)(ii)(I)) 
is amended by striking items (aa) through (kk) and inserting the 
following:
                                            ``(aa) the individual has 
                                        an active infection with COVID-
                                        19;
                                            ``(bb) the individual 
                                        received an order from a 
                                        physician to quarantine due to 
                                        exposure to COVID-19; or
                                            ``(cc) the individual is 
                                        caring for a family member or a 
                                        member of the individual's 
                                        household described in items 
                                        (aa) or (bb); or''.
    (b) Conforming Amendments.--Section 2102(c) of the CARES Act (15 
U.S.C. 9021(c)) is amended by--
            (1) inserting at the end of paragraph (6) the following: 
        ``A State shall require proof of active infection or quarantine 
        order required by subsection (a)(3)(A)(ii)(I).''; and
            (2) by redesignating paragraphs (5) and (6) as paragraphs 
        (4) and (5), respectively.
    (c) Modifying Pandemic Emergency Unemployment Compensation.--
Section 2107(a)(7) of the CARES Act (15 U.S.C. 9025(a)(7)) is amended 
by striking subparagraph (B) and inserting the following:
                    ``(B) Flexibility.--
                            ``(i) Notwithstanding the requirements 
                        under subparagraph (A) and paragraph (2)(D), a 
                        State may provide flexibility in meeting such 
                        requirements in case of individuals unable to 
                        search for work because--
                                    ``(I) the individual has an active 
                                infection with COVID-19;
                                    ``(II) the individual received an 
                                order from a physician to quarantine 
                                due to exposure to COVID-19; or
                                    ``(III) the individual is caring 
                                for a family member or a member of the 
                                individual's household described in 
                                subclause (I) or (II).
                            ``(ii) Prior to providing flexibility under 
                        this subparagraph, a State shall require proof 
                        of active infection or quarantine order 
                        required by subclause (I) or (II).''.
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