The US DOL released guidelines available to all States as to how unemployment matters should be approached with regard to COVID-19.
There are a few main scenarios:
- The Employer temporarily ceases operations – In this scenario the federal law would permit states to treat this as a layoff. It is up to each of the states to determine if the claimant is able and available, and if the individual intends to return to work after the employer resumes operations.
- The individual is quarantined and will return to the employer – the state can treat the quarantine period as a layoff under federal law, however once the quarantine ends the individual must return in the same capacity as before, otherwise they may be eligible for partial benefits.
- An individual does not return to the employer after a quarantine – This will be determined on a state by state, and case by case basis. Federal law permits a state to rule this as a quit or discharge under good cause/just cause provisions. States can consider the reasonableness of an individual’s separate for reasonable risk of exposure to COVID-19.
Some states are considering non-charging provisions to employers in the context of the COVID-19 virus, however there has not been any official announcements.
For more information on how Dunn Corporate Resources can help your organization reduce your unemployment tax expense, contact us today!