How to Handle Employees who want to stay on Unemployment

employees wanting to stay on unemployment

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After weeks of dealing with the societal disruptions caused by the COVID-19 pandemic, certain cities and states are starting to reopen their businesses or resume more normal business routines. Your business can’t run without your team, so the first step is recalling any employees you had to lay off or furlough. This might be a problem in certain situations. As part of the CARES Act passed by Congress, unemployment benefits have been increased by an additional $600 per week. In some cases, individuals might be making more in benefits than they previously were being paid. Bryant Consultants has some advice to navigate this situation if you have employees that would rather remain on unemployment than return to work.

What to do if your employee refuses to return?  

If you’re reopening and your employee does not accept the offer to return, you are obligated legally to report this on the Unemployment Insurance claims you receive from the state on behalf of your team. Your employees also face a legal obligation to make an accurate report of any requested information in their unemployment application.

Unemployment applies to the underemployed, too

As part of the attempt to continue to “flatten the curve” while also reviving the economy, many businesses are not automatically returning to full capacity. Instead, our society is expected to enter a “new normal,” and even that will take time as we adjust to social distancing and any extended economic downturn. For you, the small business owner, this means bringing back your employees may not mean taking them off unemployment right away. The income from work may affect their total unemployment compensation, but those benefits could continue until your team is restored to its full regular workload. Several states also have Work Share programs, which allow employees to receive partial unemployment benefits if they have to work reduced hours. Make sure your employees know about this, whether or not they’ve indicated any resistance to return to work. 

Remember, as well, that the expansion of unemployment under the CARES Act has specific statutes. Namely, that employees are eligible if “unable to reach their job as a direct result of the COVID-19 public health emergency,” such as their work being closed due to government order. Individuals won’t be able to cite those guidelines as a reason for their continued unemployment if such orders have been lifted. Expanded benefits are subject to employees who have COVID-19, are seeking a medical diagnosis for the virus, have a member of their household with the virus, or have had their child’s school closed due to COVID-19.

Follow this protocol when bringing back your employees 

After a furlough or temporary closure, the first step is notifying your team: preferably through a written method of documentation such as a letter, email, or memo. This should include a clear declaration of your intent to reopen, along with a proposed timeline. Encourage your employees to reach out with questions or concerns. This also means you have the conversation on file if you need to refer to it at a later date.

What if an employee refuses to return?

First, recognize your employee’s reason may be viable: they may need time to arrange child care, be caring for a sick family member, or have COVID-19. They may be concerned about contracting the virus or spreading it to a high-risk loved one. Make sure you have a clear understanding of your employee’s motivations before making any further and potentially rash decisions.

If your employee has a legitimate reason not to return to work, make an effort to help resolve the issue. He or she may be eligible for paid leave through the Families First Coronavirus Response Act, an extended furlough, or a leave of absence. If your employee’s only reason for not returning is so they can continue to receive unemployment benefits, they need to be made aware that accepting offered work is a condition of job employment—whereas not accepting work essentially means job abandonment, which would be treated as a resignation, and let the employee know that you may need to report this information to the state’s unemployment office.

Reopening after social distancing might be the biggest challenge your business will ever face. The experts at Bryant Consultants are here to help. We continue to provide consultation, training, and coaching and will continue to post relevant updates regarding the coronavirus pandemic. To ensure that you receive the latest updates, please follow us on Facebook and Instagram. Contact us directly by calling (877) 768-4799.

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