LAW
DOL SAYS DECLINING JOB BECAUSE OF COVID SAFETY CONCERNS DOES NOT DISQUALIFY FOR FEDERAL UNEMPLOYMENT But Not Being Able to Get a Job Because Businesses are Not Hiring Due to COVID Does By Christopher T. Vrountas, Esq. and Allison C. Ayer, Esquire, Vrountas, Ayer & Chandler, P.C. After months of being closed under applicable state orders, many businesses have identified enhanced Federal unemployment benefits as one of the obstacles to reopening during the pandemic. Some businesses say that their employees do not want to return because they are earning more in unemployment benefits than they would if they were working. On July 21, 2020, the Employment and Training Administration office of the United States Department of Labor (“DOL”) issued new guidance answering two dozen questions about when employees may or may not be eligible for COVID-related Federal
unemployment benefits. Unfortunately, some of the answers may not be encouraging news for employers trying to get people back to work. Briefly, the new DOL guidance provides that individuals who became unemployed for reasons unrelated to COVID, but cannot find work now because businesses are not hiring because of the pandemic are NOT eligible for Federal unemployment benefits. But individuals who refuse an offer of work due to legitimate COVID-related health and safety concerns MAY still be eligible for Federal unemployment
benefits, depending on the particular facts and state law. As background, the CARES Act was signed into law on March 27, 2020. Part of the CARES Act created the temporary “pandemic unemployment assistance” (or PUA as it is sometimes referred) for people who were ineligible for regular unemployment compensation benefits and unemployed due to the COVID-19 reasons set forth in the CARES Act. This Federal unemployment program was a critical lifeline for employees out of work during government shut downs. But the program has also created great confusion about when people are eligible www.nhlra.com | 1 5
