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According to the Connecticut Department of Labor, contributory employer unemployment insurance (UI) accounts will not be charged with COVID-19 UI benefits. This is the result of Governor Lamont's Executive Order No. 7W, issued on April 9, 2020. (Frequently asked questions about coronavirus (COVID-19) for workers and employers, updated April 14, 2020.)

According to the governor's order, Section 31-225a(c)(1) of the Connecticut General Statutes is modified to additionally provide, "(L) No base period contributing employer's account shall be charged with respect to benefits paid to a claimant due to partial or total unemployment that the Commissioner of Labor or his designee determines are attributable to COVID-19, including but not limited to benefits paid to a claimant who, through no fault of his or her own, becomes either partially or fully unemployed during the public health and civil preparedness emergency declared on March 10, 2020, and any period of extension or renewal. The Commissioner of Labor may issue any implementing orders that he deems necessary to effectuate this order.

Subsequently, the Department updated its FAQs, as follows:

Q. I am a contributory employer for UI purposes. What Does the Governor's Executive Order 7W mean for me?

A. As a contributory (taxable) employer there will be no liability (charges) to employers based on COVID-19 related unemployment claims. We will be working through the implementation of the Executive Order over the following weeks.

Q. I have furloughed my employees due to the covid-19. Why am I receiving Notices of Potential Liabilities for everyone?

A. CTDOL must notify an employer when their employees receive unemployment benefits. If the individuals are unemployed due to covid-19, you do not have to return the document.

If they separated from your company for any other reason, you have the right to protest the charges on the document by checking the appropriate box, entering a date, and returning it to us by the due date.

Note: If you are a contributory (taxable) employer, there will be no liability (charges) to employers based on COVID-19 related unemployment claims. We will be working through the implementation of the Executive Order over the following weeks.

Work search requirements waived for workers filing COVID-19 UI benefit claims; state does not have a one-week waiting period

The Department announced that the requirement that workers applying for new UI benefits directly impacted by the COVID-19 pandemic be actively searching for work is suspended.

The announcement goes on to state that UI benefits are available to workers whose employer needs to temporarily shut down or slow down business. Employees who are furloughed by the emergency but expect to return to work can access up to at least six weeks of benefits. Employers reducing hours but not furloughing employees can partner with CTDOL's Shared Work program, which allows employers to reduce employees' work schedules by 10% to 60% and supplement lost wages with UI benefits.

Connecticut UI law already excluded the one-week waiting period.

On April 14, 2020, the governor announced that new software improvements to the Department's UI benefit claim system will reduce the time COVID-19 UI benefit claimants have been waiting for their claims to be processed. As a result, the anticipated six-week turnaround period will be reduced to one week or less.

For more information on the Department's response to COVID-19, see the Department's website.

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