Unemployment and Covid
I was doing research for one of our clients asking about the changes to unemployment compensation due to covid and thought I would share some information that may help people who are facing layoffs and greatly reduced hours due to the outbreak.
Typically states consider you eligible for unemployment under three tests: you are able to work, you are available to work, and you are actively seeking work. You need to meet all three conditions to qualify. Covid is creating a lot of unusual conditions in that equation as people are not working because their employer is temporarily closed.
The Department of Labor has issued guidance that states should consider waivers for some of those and offers a few different scenarios to consider: an employee who cannot work because their employer is closed for the duration, an employee who is quarantined, and an employee who leaves employment to care for sick family members.
In the first two cases, DOL recommends waiving the three means tests (as well as any state imposed waiting periods to qualify.) The latter case is considered more conditional and is based somewhat on whether that employee intends to return to the same job after the hiatus and whether the employer will allow them to do so.
What this may mean for you
A substitute teacher is unable to work because the schools are closed, those she is available to work. She plans to continue working in the same field and for the same school system when they reopen, so she is not actively looking for work. Under the DOL guidance, the recommendation would be that the teacher’s application for unemployment be granted under waivers to the able and looking tests.
This would also apply to restaurant workers, for instance, whose restaurants are closed. A restaurant/retail employee who faces dramatically reduced hours due to limited opening hours would also be able to apply.
An hourly employee cannot work because they are quarantined due to exposure. The guidance indicates that they would be able to apply, and should have waivers of the tests, because they are not covered by sick leave, have had hours reduced due to quarantine, but would be available to work outside the conditions of the quarantine.
If you take time to care for others, the guidance varies a bit based on whether you leave voluntarily or are discharged, and whether the employee plans to employ you again when you return. This is the more variable of the three scenarios. People in this situation should contact their unemployment office to determine whether a waiver would be granted.
What other steps are being taken for the unemployed?
The stimulus package under consideration in the Senate has a pool of money (up to $1 billion) that is to be split two ways. Half will go to states that see a spike in unemployment to cover administrative costs, conditioned upon efforts to require employers to make information available and to provide at least two ways to apply, including online, by phone or in-person.
The second half of the funding will cover additional payments for unemployment claims covered by states who provide waivers as outlined above.
The second package of stimulus under consideration may include more substantial expansion of unemployment insurance.
Should you apply?
This largely depends on your individual situation, but if you are unemployed/laid off due to the covid outbreak, and expect to return to your employer in the future, you likely qualify for compensation under these guidelines. You should contact the unemployment office to make sure they are granting these waivers in your area.