March 31, 2020
Guidance to Employers contemplating potential layoffs.
If planning to cease or limit operations, employers are encouraged to place employees on a temporary leave as opposed to termination. Employers are encouraged to advise the worker that they are expected to have work available within 120 days.
Suggested steps for Employers placing Employees on unpaid leave
- Let the employee know that the situation is fluid and subject to change
- Provide the employee with a formal Unemployment Compensation Notice (UIA Form 1711)
- Upon request we can complete this form for you. We will need to know the last day worked you would like us to use and we will calculate the anticipated return to work date 45-days from then.
- Communicate to the employee about their rights: As of March 16, 2020, if workers are placed on leave, due to closures, sick, quarantined, immunocompromised, or have an unanticipated family care responsibility – they are eligible for unemployment insurance benefits.
- Ensure employees are provided information on how to obtain unemployment insurance benefits.
- We suggest printing this factsheet on how to apply for benefits and providing it to employees along with the “Unemployment Compensation Notice” above.
- Obtain each employee’s up to date contact information
Work Share Program – An alternative to layoffs
- If employers are financially distressed, they are encouraged to use the State’s Work Share program that allows employers to maintain operations during declines in regular business activity rather than laying off workers. Work Share Program Fact Sheet
- From March 16, 2020, until April 14, 2020, certain eligibility requirements to participate in Work Share are suspended.
Help for Employers
Under the governor’s order, an employer or employing unit must not be charged for unemployment benefits if their employees become unemployed because of an executive order requiring them to close or limit operations.
- If you are not an affected industry, benefit payments being charged to your employer tax account will result in an increased UI tax and tax rates.
Expanded Federal and State Unemployment Benefits – increases in benefits and eligibility have been included in the recently passed CARES Act.
The latest available information for employers can be found at:
If you have any questions please feel free to contact us.