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:

1. 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.
2. 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.
3. 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!