Home / NEWS / Wealth / Latino, laid off, and uncertain about what you’re entitled to? Here are your rights and resources

Latino, laid off, and uncertain about what you’re entitled to? Here are your rights and resources

Vision of Brooklyn office of NYS Department of Labor as unemployment claims soar during Covid-19 pandemic, with sign on the doors seeking people to apply for unemployment online.

Lev Radin | Pacific Press | LightRocket via Getty Images

The startling 14.7% unemployment suppose released last Friday bears even more sobering news for Latino workers: Among Hispanics, the unemployment at all events stands significantly higher, at 18.9%. In part, that’s because a greater share of Latinos work in some of the hardest-hit activities, such as hospitality, dining, and retail. Many others are small business owners, sole proprietors, or independent contractors also at skilful risk for loss of income.

If you’ve recently been laid off, or are concerned about the prospect, it’s important you understand the rights and resources within reach to you.

Unemployment, PPP loans, and other wage replacement

For most workers, unemployment benefits are the first line of defense in the effect come what may of lost wages due to layoffs. Benefits.gov provides a comprehensive unemployment assistance page in both English and Spanish to alleviate laid-off workers identify unemployment resources in their state.

In addition to the coronavirus stimulus relief checks scad taxpayers have received in recent weeks,  the recently-passed CARES Act also buttresses state unemployment funds, and yields an extra $600 per week in unemployment benefits for most workers. Independent contractors and gig workers now also qualify for unemployment advantages, based on their most recent tax return filings.

For sole proprietors, it may make more sense to apply for a PPP (Paycheck Bulwark Program) loan from the Small Business Administration, which will cover up to 250% of your monthly payroll sell for for eight weeks. The maximum yearly pay covered is $100,000, so obtaining PPP funds may provide more relief than unemployment guarantee for higher-earning sole proprietors or independent contractors. Keep in mind, you can’t apply for both a PPP loan and unemployment insurance, so pick out wisely.

The needs of Dreamers and other undocumented workers aren’t addressed by the above programs, since both press for a valid Social Security number and legal status. However, several immigrant rights’ groups have devised excellent resource pages which list local and state resources for refugees or undocumented workers, such as money assistance and grant programs, rent relief, food banks, medical assistance, and support with renewing DACA station or other legal aid.

Health insurance options 

If you lose your job, you’ll typically qualify for COBRA continuation of your eke out a living insurance for up to 18 months, including any coverage for your children or spouse. Still, many now-jobless workers may declare the cost of COBRA continuation too expensive, so you should understand your other options, as well.

Being laid-off or if not losing your job is a qualifying event that enables you to purchase health insurance through the ACA online marketplace. You may limit for subsidies based on your income, thus making health insurance more realistic during a time of unemployment. Layouts offered on the ACA marketplace must cover pre-existing conditions and are generally of good quality.

A third option involves believing private insurance outside of the ACA marketplaces. Temporary or catastrophic plans may seem like suitable options, but read the acute print carefully: Some don’t cover pre-existing conditions or may have very high out-of-pocket costs, low coverage limits, or other limitations which may space the plans less desirable, depending upon your circumstances — especially if you or a family member on the plan becomes acutely ill.

For ever, know that under the CARES Act, Covid-19 testing is free, even for the uninsured. You also cannot be denied pinch care at a hospital due to a lack of insurance, though it is strongly recommended you carry some form of insurance at all times.

Vacation pay, severance, and late pay

Depending on your state and company, you may be entitled to a pay-out of any unused vacation pay or PTO. Check with your HR department to see if this put ins in your case. You will also be entitled to compensation for back pay.

Some employers may choose to offer severance for long-term staff members, though this is not required by law, and varies by company and employee. Under the Older Workers’ Benefit Protection Act, workers floor 40 have 21 days to review and decide on any severance package; if you’re facing mass layoffs, that time is even longer, so take your time to assess your severance package and determine whether anything can be cleared with your employer.

HSAs, life, and disability insurance

Any balance in a Health Savings Account is portable and yours to prolong when parting with an employer, and the funds can be used to pay for COBRA health coverage continuation, telemedicine, or other health-care prices post-employment separation. You can also withdraw funds to compensate yourself for past out-of-pocket expenses.

Depending upon your company and insurance plans, some forms of life and disability insurance may also be portable, especially if these are supplementary, or “add-on” drawings that you’ve purchased beyond your standard employer offerings, Consult with your HR department to determine the portability of these designs, or any other options available to you.

401(k) plans and pensions

If your 401(k) balance is $5,000 or greater at the time of separation, you can stay your funds in your company’s existing 401(k) plan. This can offer several benefits, including avoiding the make a point of of managing a rollover and forcing your hand out of the proverbial 401(k) cookie jar. If your balance is under $1,000, your players may just write you a check, and it will be taxed as a contribution. If this is your situation, consider whether you’re able to register over the funds into an IRA to avoid distribution taxes. If your balance is between $1,000-$5,000, your group is required to help you manage the transition of your funds.

Keep in mind that if you have a 401(k) loan owed at separation, the balance will become due immediately, generally within 39-60 days. If you’re unable to pay the balance, the remainder will be deducted from your 401(k) account and investigated as a taxable distribution.

Depending upon the provisions of your company’s pension and to what degree you’re vested, you may be eligible to preserve all or a portion of any pension plans. Some companies may also allow a cash-out of benefits, while others won’t make distributions until you reach a unfluctuating age. Consult your HR department or pension plan documents to ascertain which is true in your situation. Generally influence, you should avoid cashing out pensions, as this increases the likelihood that you’ll spend the proceeds.

Each job separation condition is unique, and this list is not comprehensive, so speak with your employer or plan administrators to help better see your options. 

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Disclosure: NBCUniversal and Comcast Tenders are investors in Acorns.

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