Washington Governor Inslee and the Washington Employment Security Department announced that new rules are now in place to provide state unemployment insurance (UI) benefits to workers unable to work due to an employer shutdown or quarantine/isolation period due to COVID-19 (novel coronavirus). The rules also allow for the non-charging of UI benefits against employer accounts. (Governor's news release, March 10, 2020; Washington Employment Security Department news release, March 12, 2020.)

The Department provides the following examples of when workers may collect UI benefits:

• Workers may receive unemployment benefits and employers may get relief of benefit charges if an employer needs to shut down operations temporarily because a worker becomes sick and other workers need to be isolated or quarantined as a result of COVID-19.
• Standby will be available for part-time workers as well as full-time workers, as long as they meet the minimum 680 hours. Workers are considered on "standby" if they are temporarily out of work and are expected to return to work soon.
• Workers who are asked to isolate or quarantine by a medical professional or public health official as a result of exposure to COVID-19 may receive unemployment benefits and work search requirements could be waived, so long as they have a return date with their employer. The return to work date can be the date the isolation or quarantine is lifted.
• If a worker falls seriously ill and is forced to quit, they cannot collect unemployment benefits while they are seriously ill but may be eligible once they recover and are able and available for work.

Use of the SharedWork program is urged

The Department suggests that employers needing to shut down or reduce employee hours use the Washington SharedWork program as an alternative to a layoff. The program allows employers to reduce the hours of full-time employees by as much as 50%, and the employees can collect partial unemployment benefits to replace a portion of their lost wages.

Medical benefits for COVID-19

Workers who are unable to work because they are ill with COVID-19 may apply for medical leave benefits under the new Washington state paid family and medical leave program. Note, however, that information on the paid family leave website indicates that the Department has received a large volume of applications and it is taking up to 10 weeks for applications to be processed. The Department is recommending that workers first use employer-provided leave and/or accrued paid sick leave required under the paid-sick-leave law. See the Department's FAQs regarding the paid-sick-leave law and COVID-19. (See EY Payroll Newsflash, Vol. 21, #77, March 19, 2020, for information on the federal requirement to provide paid sick leave and the state paid family and medical leave program.)

See the Department's comparison guide of for a checklist of benefits available to workers during the COVID-19 period. See also the COVID-19 emergency rules.

Penalties for late SUI tax reporting waived

The emergency rules add COVID-19 issues to the provision that allows the Department to waive late filing and late payment for employers unable to timely file their SUI tax reports and/or pay SUI taxes. COVID-19 issues are also added to the provision that excuses late responses to UI benefit requirements.

Governor announces emergency shutdown of bars and restaurants

On March 16, 2020, the Washington state governor announced that the immediate two-week shutdown of all restaurants, bars, and entertainment and recreational facilities. The new orders go into effect at midnight March 17, 2020 and will be in place through March 31, 2020.

Proclamation 20-05 applies to:

• Restaurants
• Food courts
• Bars
• Taverns
• Coffee shops
• Catered events
• Clubs
• Bowling alleys
• All other similar venues in which people congregate for the consumption of food or beverages

For purposes of the proclamation, "public venue" has its ordinary meaning and includes social clubs, private clubs, tennis clubs, golf clubs, faith-based organizations/facilities, and other similar venues.

The sale of prepared food or beverages that are otherwise legally delivered or taken out of the venue for consumption or the purchasing of groceries that are not consumed within the premises, more commonly known as drive-through, take-out, and delivery services, are not prohibited.

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EY Payroll News Flash