The Alabama Department of Labor has announced through two separate news releases that it will temporarily waive certain provisions of the state’s unemployment insurance (UI) law to provide for flexibility as outlined by the US Department of Labor to support workers and businesses impacted by the COVID-19 pandemic. In its latest news release, it also stated that UI benefits paid in connection with COVID-19 will not be charged to employer accounts.

Employee UI benefits for COVID-19 

On March 16, 2020, the Department issued a news release announcing employees unable to work due to COVID-19 will be able to apply for UI benefits based on a temporary modification to Alabama’s UI law based on guidance from the U.S. Department of Labor. As a result of these temporary measures, the requirement that a laid-off worker be “able and available” to work while receiving unemployment compensation benefits is modified for claimants who are affected by COVID-19 are in any of the following situations:  

• Quarantined by a medical professional or a government agency
• Laid off or sent home without pay for an extended period by their employer due to COVID-19 concerns
• Diagnosed with COVID-19
• Caring for an immediate family member diagnosed with COVID-19

Additionally, UI benefit claimants meeting the above criteria will also not have to search for other work, provided they take reasonable steps to preserve their ability to come back to their job when the quarantine is lifted or the illness subsides. The “waiting week,” which is typically the first week of compensable benefits, will also be waived.

Verification of illness or quarantine may be required.

Employees who are being paid to work from home, or those receiving paid sick or vacation leave are NOT eligible for UI benefits, regardless of whether they experience any or all of the situations required for eligibility.

Employers that decide to shut down, due to causes related to COVID-19 are instructed to treat the shutdown as a temporary layoff.

The Department cautions that these rules are subject to change pending congressional action.

Employer accounts will not be charged for COVID-19-related UI benefits

On March 20, 2020, the Department issued an additional news release stating that the Alabama Department of Labor has temporarily ordered that UI benefits paid to employees in connection with COVID-19 will not be charged against the accounts of employers who file partial unemployment compensation claims on behalf of their employees. These charges will be waived until further notice. 

The Department is encouraging all employers to file partial claims on behalf of their employees if they are able to do so. Employers will need to answer YES when asked if the claim is COVID-19-related when they file partial unemployment claims. Any claims filed during the week of March 16 – March 20 will be addressed on a case-by-case basis. The Department recommends that employers who are unable to file partial claims on their employees’ behalf notify the Department that they waive their right to respond to any Request for Separation information (BEN 241). Although the BEN 241 will still be mailed to employers, they do not have to respond to the BEN 241 if they notify the Department in writing that they waive this right.

Employers can notify the agency by email (Ben241waiver@labor.alabama.gov) or by sending a fax to +1 334 309 9098.  Statements should be on company letterhead and should include the state unemployment insurance account number. Both measures will expedite the processing of employees’ UI claims.

Information regarding partial claims and how to file them is available here.

Alabama COVID-19 unemployment insurance resources are available here.

For information about federal COVID-19 paid-leave requirements, go here.

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