Cooper Changes NC Unemployment Benefit Requirements by Executive Order

North Carolina Governor Roy Cooper, pictured here last year, recently signed an Executive Order reinstating restrictions on unemployment benefit claims from the state. Source.

Beginning on March 14th, 2021, North Carolinians seeking unemployment benefits will have to provide proof that they are actively pursuing employment opportunities to qualify. Governor Roy Cooper laid down an executive order detailing the changes which negate a previously issued executive order from March of 2020. Typically, in a non-COVID time, the requirements for unemployment stipulate that one must be actively searching for a job before receiving any state issued benefits. However, Governor Cooper struck down the requirement due to the increased unemployment during the pandemic. Now, that period is closing, and within the new executive order, Governor Cooper promotes the usage of NCworks.gov to promote job opportunities and employment training. Cooper also issued a statement saying, “Unemployment payments have been critical for families and we want them to have jobs before the payments end.” While some have questioned his commitment to families and the unemployed throughout the pandemic, he is allowing those already registered for unemployment to be “grandfathered in” and forgo the active search requirement, enabling additional flexibility in the crippled job market. 

This reinstitution of the job-search requirement began in the General Assembly, where Republican representatives have been clamoring to reinstate the rules since shortly after they were voided in March. Additionally, the Republican legislature is staunchly against Governor Cooper’s decision to increase benefits from $350 a week to $500 during the COVID economic downturn, but since the funds are flowing from a trust in which the Governor has access, the legislature can not revert them back. Further reason for the reinstatement of the requirement stems from the improving job numbers throughout the state. Governor Cooper has remained optimistic on vaccinations, and the state is currently logging a period of job growth as the pandemic wanes. Thus, Cooper has been emboldened to take one more step toward normalcy, because most of the immediate and acute wave of joblessness has subsided. 

However, for some, the effects of the initial mass unemployment wave have not ameliorated. In fact thousands of unemployment claims across the state dating back months ago have yet to be processed. Citizens have been going in circles with the unemployment office and the Division of Employment Security: when an individual’s immediate unemployment claims have been denied, an appeals process can take months due to bureaucratic red tape. For instance, one individual, James Perden, had his appeals review appointment last month, six months after his initial unemployment claim, and when he arrived, he was informed the individual assigned to review his case was no longer working with the Division. The worker had quit two weeks before they had even been assigned to Perden’s case, but because of this inefficiency, Perden was forced to wait hours on the hotline scheduling a new appointment. For people like Perden, restricting access to unemployment benefits could prove detrimental, especially when they’ve been waiting months just for their first unemployment check. 

Obviously, the pandemic and resulting financial crisis have yet to fully subside. There are new variants of the virus spreading throughout the nation, there is some evidence of widespread vaccine skepticism, so the end date of the unemployment crisis may still be yet ahead. Although jobs are being added to the state’s economy, that doesn't necessarily mean the demand for labour will be matched with supply for some time. Thus, Governor Cooper, in an effort to incentivize a return to work, implemented the unemployment norms at possibly a poor point. Still, the continued benefit of an additional $150 in benefits per week does validate his commitment to struggling North Carolinians to an extent. Ultimately, this policy change was inevitable due to state unemployment standards, but only time will tell as to how soon it should have been implemented.