March 24, 2020 California Governor issues order for unemployment benefits in connection with COVID-19; paid leave options are available California Governor Newsome proclaimed a state of emergency on March 4, 2020, and has issued several additional COVID-19 orders since then. On March 11, 2020, the governor announced that workers affected by COVID-19 would be eligible for one of several benefits available in California, as follows:
The proclamation does not specifically provide that employer accounts will not be charged for COVID-19 UI benefits. Information and resources can be found on the California Department of Labor & Workforce Development website. A chart is available to help workers determine which program would be most beneficial. State UI benefits On March 12, 2020, the governor issued Executive Order N-25-20 regarding UI and SDI payments. Retroactive to January 24, 2020, the order requires the California Employment Development Department (EDD) to waive the one-week waiting period for people who are unemployed and/or disabled due to COVID-19. Workers may file claims for UI benefits if an employer has reduced workers' hours or shut down operations due to COVID-19. UI provides partial wage replacement benefit payments to workers who lose their jobs or have their hours reduced, through no fault of their own. Workers who are temporarily unemployed due to COVID-19 and expected to return to work with their employer within a few weeks are not required to actively seek work each week. However, they must remain able and available and ready to work during their unemployment for each week of benefits claimed and meet all other eligibility criteria. Eligible individuals can receive benefits ranging from $40-$450 per week. According to the EDD, workers who must miss work because their child's school is closed may also be eligible for UI benefits. Eligibility considerations include if workers have no other care options and are unable to continue working normal hours remotely. Workers are instructed to file UI claims; EDD representatives will decide if they are eligible. The EDD is also encouraging employers that are experiencing a slowdown in their businesses or services as a result of COVID-19 to apply for a UI work-sharing program. Nothing in the governor's executive orders or on the EDD's website indicates whether employers will be charged for UI benefits paid as a result of COVID-19. We have attempted to contact the EDD for further information but, due to shortened hours for EDD representatives to answer phone calls, were unable to confirm with agency officials. California state income tax withholding and UI tax payment and filing extensions The order also delays the deadline for state tax filing by 60 days for individuals and businesses unable to file on time due to the need to comply with public health requirements related to COVID-19 filings. SDI benefits According to the EDD, employees who are unable to work because they have contracted, or have been exposed to, COVID-19 (certified by a medical professional), may file an SDI claim. SDI provides short-term benefit payments to eligible workers who have a full or partial loss of wages due to a non-work-related illness, injury, or pregnancy. Benefit amounts are approximately 60%-70% of wages (depending on income) and range from $50-$1,300 per week. The Governor's Executive Order waives the one-week unpaid waiting period, so individuals may collect SDI benefits for the first week out of work. Paid family leave Individuals unable to work because they are caring for an ill or quarantined family member with COVID-19 (certified by a medical professional), may file a California Paid Family Leave (PFL) claim. PFL provides up to six weeks (increased to eight weeks effective July 1, 2020) of benefit payments to eligible workers who have a full or partial loss of wages because they need time off work to care for a seriously ill family member or to bond with a new child. Benefit amounts are approximately 60%-70% of wages (depending on income) and range from $50-$1,300 a week. Other paid-leave options California state law requires employers to provide paid sick leave to their employees who work 30 or more days within a year. Employees accrue one hour of paid sick leave per 30 hours worked. The employer must provide, at minimum, at least 24 hours of paid sick leave per year to employees. A new employee may begin to use accrued sick leave after 90 days of employment. For more information on employer-paid sick leave, go here. Go here for a poster required to be displayed in the workplace. Note that under the federal Families First Coronavirus Response Act (HR 6201), which President Trump signed into law on March 18, 2020, certain employers must provide up to two weeks of paid sick leave for COVID-19-related illnesses. (See EY Payroll Newsflash Vol. 21, #077, 3-19-2020.) Employees at worksites in California with 25 or more employees must be provided up to 40 hours of leave per year for specific school-related emergencies, such as the closure of a child's school or day care by civil authorities (Labor Code section 230.8). Whether that leave is paid or unpaid depends on the employer's paid leave, vacation or other paid-time-off policies. Employers may require employees use their vacation or paid-time-off benefits before they are allowed to take unpaid leave, but cannot mandate that employees use paid sick leave. However, a parent may choose to use any available paid sick leave to be with their child as preventative care. See this California website for more information on the state's response to COVID-19. ———————————————
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