Recently enacted HB 742 provides that Vermont employer accounts will under certain circumstances not be charged for unemployment insurance (UI) benefits paid to employees in connection with COVID-19.

Under the law, and for an eight-week period, employers will not be charged for benefits paid if any of the following applies:

• Because the employer temporarily ceased operation, either partially or completely, at the individual's place of employment in response to a request from a public health authority with jurisdiction that the employer cease operations because of COVID-19
• In response to an emergency order or directive issued by the governor or the president related to COVID-19, or because the employer voluntarily ceased operations due to the actual exposure of workers at that place of employment to COVID-19
• If the individual becomes unemployed as a direct result of a state of emergency declared by the governor or the president in relation to COVID-19 or an order or directive issued by the governor or president in relation to COVID-19
• Because a medical professional or a public health authority with jurisdiction has recommended or requested that the individual be isolated or quarantined as a result of COVID-19, regardless of whether the individual has been diagnosed with COVID-19

Employers will only be eligible for relief of charges for UI benefits paid if they rehire or offer to rehire those employees within a reasonable period of time after the employer resumes operations at the employees' place of employment or upon the completion of the employee's period of isolation or quarantine.

The Commissioner of Labor may extend the eight-week period of non-charge upon a request from a local health official or the Commissioner of Health, or if the governor or president issues an applicable emergency order or directive, and under other relevant conditions or factors.

Following are frequently asked questions (FAQs) published by the Vermont Department of Labor concerning the law:

Q: What impact does the law have on Vermont employers?

A: The law provides the following relief for employers:

• The employer's experience ratings will not be charged for benefits paid to employees for any of the COVID-19 related reasons (as detailed below in the employee question 'Am I eligible for benefits?')
• If the employer rehires or offers to rehire employees within a reasonable time, it will also be relieved of charges for up to eight weeks where:
• The employer temporarily ceased operations in response to request from a public health authority, emergency order from the Governor or President, or actual exposure to COVID-19 at the workplace
• The employee becomes unemployed due to a state of emergency declaration or order/ directive of the President or Governor; or Employee isolates or quarantines at recommendation of medical professional or public health authority

Q: Am I eligible for unemployment benefits?

A: As the result of the law, the eligibility requirements for unemployment benefits were expanded to include the following areas:

Temporarily Laid-Off:

• Your employer ceases operations for a COVID-19 related reason
• As a direct result of an order issued by the Governor or President
• For the employees own COVID-19 related isolation/quarantine

Left Employment due to:

• Being sick or isolated as the result of COVID-19
• An unreasonable risk of exposure at your place of employment
• Caring for a family member who is sick or isolated as the result of COVID-19
• Caring for a family member who had an unreasonable risk of exposure at their place of employment
• Need to care for a child who has had their school or childcare center closed

Work search requirements are waived for workers filing COVID-19 UI benefit claims

The Department announced that work search requirements are waived for workers receiving UI benefits as a result of COVID-19. The work search waiver applies to all UI claimants, not just those that have a return-to-work date.

One-week waiting period likely waived

In an Executive Order (see #18) issued by Vermont Governor Phil Scott, the Vermont Department of Labor was instructed to temporarily remove all mechanisms that would delay the payment of UI benefits to claimants in connection with COVID-19. This likely means that the one-week waiting period for UI benefits should be waived, although the provision is not included in the recent legislation or in the Department's guidance.

Employer paid sick leave for COVID-19 illnesses

Vermont employers are required to allow employees to accrue paid sick leave at a rate of one hour for every 52 hours worked. Effective January 1, 2019, employees are entitled to up to 40 hours of paid leave per year. Employers can choose to "front-load" paid sick leave at the beginning of the year. (EY Payroll Newsflash Vol. 17, #044, 3-10-2016.)

The following Department FAQ addresses paid sick leave for workers affected by COVID-19:

Q: What if I need to take time off from work because I contract COVID-19?

A: Employer-paid time off is the first and best option for employees in this case. If employer-paid time off is not available, under the Vermont Earned Sick Time law, employers are required to give employees 40-hours per year of earned sick time. Employees should check with their employer to confirm what, if any, accrued leave balances they have available.

• Information in English: https://labor.vermont.gov/document/update-2019-earned-sick-time-poster
• Information in Spanish: https://labor.vermont.gov/document/earned-sick-time-spanish-mandatory

As a result of H. 742 signed into law by Governor Phil Scott on Monday, March 30, you may also be eligible for unemployment benefits. For more information on establishing an initial unemployment claim, click here. Please note that Work Search Requirements have temporarily been waived as a result of COVID-19.

Vermont does not have a paid family and medical leave program

As we reported, Vermont Governor Scott again this year vetoed mandatory paid family and medical leave legislation, stating that he is ready instead to institute a voluntary plan. The bill (H. 107) would have established a state-run paid family and medical leave insurance program funded by a 0.20% tax on employees' wages. (EY Payroll Newsflash Vol. 21, #051, 1-10-2020.)

———————————————

———————————————
ATTACHMENT

EY Payroll News Flash