Governor announces cash bonuses for people returning to work

Editor’s note: This article was updated to reflect that the extra $600 in unemployment benefits is per week, not per month.

Gov. Brad Little announced a new boost for people who are exiting unemployment for a new job: $1,500 cash bonuses to full-time employees and $750 to part-time employees who return to work.

The program will be funded with $100 million from Idaho’s federal COVID-19 relief aid. Eligibility for the cash bonuses will be finalized by June 15, though the program is targeted at those who were eligible for unemployment benefits during the pandemic.

“This is bait to get the economy going,” Little said at a June 5 press conference. “A strong economic rebound cannot occur without workers returning to a job, and the new Return to Work cash bonuses incentivize our workforce to get back to work safely. Like other states, Idaho went from record employment to record unemployment levels in a matter of weeks. Our hearts go out to those who lost jobs or income due to the global pandemic.”

The bonuses will be granted on a first-come, first-served basis until the $100 million is given out. Alex Adams, Idaho’s Chief Budget Officer said at the press conference that any money unspent from other COVID-19 relief funds, like the Idaho Small Business Rebound Grants, may be repurposed to continue the worker bonuses once the $100 million was gone; however, the state’s COVID-19 Financial Advisory Committee, which is helping to formulate the rules and eligibility criteria has not yet finalized the exact details.

COVID-19 has led to a massive rise in unemployment following a long period of economic stability. More than 60% of Americans who are out of work due to the coronavirus pandemic earn more with the enhanced unemployment benefits than their normal wages. The Coronavirus Aid, Relief, and Economic Security Act added $600 a week to whatever state benefits workers receive through their state unemployment compensation program. These enhanced benefits are set to expire next month on July 31, making it even more important to get Idahoans back to work. 

Little explained that the bonuses would incentivize people to get back to work earlier despite the added $600 federal pandemic unemployment benefit every week, which might encourage some to delay returning to the workforce. Little said he believed the return-to-work bonus program was the first of its kind in the country, just as Idaho’s small business rebound grants were also the first of their kind.

Little will work with the Idaho Workforce Development Council and his Coronavirus Financial Advisory Committee to finalize the plan and eligibility requirements. The executive committee of the Idaho Workforce Development Council will discuss the plan next week. More information on eligibility and how to apply for a Return to Work cash bonus are expected to be available by June 15 at Rebound.Idaho.Gov.

 This is a developing story. The Idaho Business Review will provide more information when it is available.

Kim Burgess contributed to this story.