Frequently Asked Questions About the Coronavirus and Unemployment

The effect of COVID-19 on the workplace has been swift and harsh, as demonstrated by the number of furloughs and layoffs employers have been forced to make in recent days.  In fact, more than 200,000 Pennsylvanians filed for unemployment last week alone.  In light of this developing situation, the Pennsylvania Department of Labor & Industry (“L&I”) has issued a Frequently Asked Questions on various issues relating to COVID-19 and unemployment. 

In particular, we wanted to highlight two novel issues addressed in the FAQs that are of interest to many employers.  First, L&I has stated that businesses who are temporarily closed due to COVID-19 will be granted Relief From Charges and their tax rate will not be increased because of COVID-19 related claims.  Second, L&I has stated that a furloughed employee cannot receive paid leave and unemployment compensation benefits at the same time, as it may result in an “overpayment” that would require the employee to return benefits.

As this situation progresses, we will continue to keep employers and human resources professionals updated on all key developments related to COVID-19 and its impact on the workplace.  Please be sure to subscribe to our blog and follow us on social media so that you can receive timely updates and analysis on the issues that affect your workplace.  For questions about this or any other labor and employment law matter, please do not hesitate to contact the attorneys at Hoffman & Hlavac.