Can Employees Collect Unemployment for Coronavirus Related Matters?

In addition to the ever-changing laws, bills, and requirements related to the coronavirus for employers, issues related to unemployment compensation have also developed.  Many employers have been asked by their employees if they are able to collect unemployment if they are out of work due to coronavirus related issues.  As an initial matter, an employer cannot guarantee any employee unemployment compensation benefits.  The determination of benefits is made by the Pennsylvania Department of Labor and Industry, Office of Unemployment Compensation.  What an employer can tell employees is as follows:

You may be eligible if: The employer temporarily closes or goes out of business because of COVID-19; the employer reduces your hours because of COVID-19; the employee has been told not to work because the employer feels the employee might get or spread COVID-19; or the employee has been told to quarantine or self-isolate, or live/work in a county under government-recommended mitigation efforts.

If one of the foregoing occurs, an employee can immediately file for unemployment compensation benefits.  An initial claim can be filed at https://www.uc.pa.gov/unemployment-benefits/file/Pages/File%20an%20Initial%20Claim.aspx.  It should also be noted that prior to the pandemic, there was a “one week waiting period” with regard to the collection of unemployment benefits.  In other words, if I filed for unemployment today, I would not start to collect benefits until a week passed from the date of filing.  The Department of Labor has suspended the waiting period during the pandemic.  As such, benefits would start to accrue from the first day of entitlement.

It should also be noted that the reason for filing is only one factor.  An individual must also be financially eligible to receive unemployment compensation benefits.  Financial eligibility is determined by the Department of Labor based upon certain factors, such as wages earned during the benefit year.  Once again, an employer should not provide any guarantees or promises to its employees with regard to unemployment, but merely supply information about where they can file for benefits if a potentially qualifying event occurs.

If you have any questions with regard to this issue, or any other labor and employment related matter, please contact one of the attorneys as Hoffman & Hlavac.