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Arts and Entertainment Organizations Call On Congress To Fix Mixed Earner Unemployment Benefits

July 21, 2020/by Lorie Hollabaugh

A coalition of arts and entertainment unions and organizations have spoken out in support of the Mixed Earner Unemployment Assistance Act of 2020. The bill was introduced by U.S. Representatives Adam Schiff (D-CA) and Judy Chu (D-CA) to remedy some of the unintended flaws in previous COVID-19 relief bills.

The Author’s Guild, Department for Professional Employees, AFL-CIO, Future of Music Coalition, the Recording Academy, RIAA, SAG-AFTRA, and Songwriters of North America are among the organizations who have shown support.

Unfortunately, American workers who have mixed income, (income they report as W-2 and 1099 or other self-employment income) are being penalized simply because they earned some income as a W-2 employee. If a mixed-earner such as an entrepreneur, seasonal worker, gig worker, or local musician, singer, actor, writer, photographer, or other creator makes enough income as a W-2-employee to qualify for any amount of traditional state unemployment benefits, only their W-2 income is considered in determining a weekly base benefit amount. As a result, these taxpayers are losing thousands, sometimes tens of thousands, of dollars in vital benefits that could cover the cost of rent or food during a global pandemic.

Many creators work project to project in multiple jobs and various capacities and as a result, creators often find themselves working as employees such as under a union contract and receiving W-2 wages and as independent contractors (or otherwise self-employed) in the same year.

This new legislation grants states the option to transition eligible Mixed Earners from their state unemployment program into the federal PUA program, which will ensure equitable benefits for the recipient going forward. Under this legislation, a mixed earner who earned at least $7,250 from self-employment in 2019 could amend their application to qualify for the PUA program where all income will be aggregated to calculate a new weekly base benefit amount based on actual income.

“For many workers, the relief provided by the CARES Act is making a crucial difference in helping make ends meet during this unprecedented period of disruption. Yet due to the nature of independent work, particularly in industries like entertainment, many workers are currently excluded from Pandemic Unemployment Assistance because they earn a living through a mix of self-employment and traditional W-2 jobs,” said Rep. Schiff. “Our bill will ensure that mixed earners are no longer excluded from this critical assistance because of the nature of their employment and income.”

“The pandemic has exposed that our nation’s unemployment system is not designed for all workers, like music creators, leaving so many vulnerable and without assistance,” said Harvey Mason Jr., Chair and Interim President/CEO of the Recording Academy. “The Mixed Earner Pandemic Unemployment Assistance Act is a critical solution that will help so many in our community receive the fair benefits that they deserve. The Recording Academy thanks Representatives Adam Schiff and Judy Chu for their tireless efforts to ensure that all workers have equitable access to unemployment benefits as our creative community faces the long-term effects of this unprecedented crisis.”

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Lorie Hollabaugh
Lorie Hollabaugh
Hollabaugh, a staff writer at MusicRow magazine, has over 20 years of music business experience and has written for publications including American Profile, CMA Close Up, Nashville Arts And Entertainment, The Boot and Country Weekly. She has a Broadcast Journalism and Speech Communication degree from Texas Christian University, (go Horned Frogs), and welcomes your feedback or story ideas at lhollabaugh@musicrow.com.
Lorie Hollabaugh
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