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April 28, 2020
2020-1140

Arizona provides UI benefits for employees impacted by COVID-19; employer accounts will not be charged for benefits

Arizona Governor Douglas Ducey announced that he issued Executive Order 20-11 to 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. Specifically, the Executive Order waives the requirement that UI benefit recipients search for work, eliminates the waiting week to be eligible for UI benefits and stipulates that COVID-19 UI benefits are not charged to employers' accounts. The UI provisions of the Executive Order were adopted by the Arizona Senate under SB1694, with passage expected by the Arizona House of Representatives.

Governor Ducey stated in his announcement, "These are important steps to get help to Arizonans out of work and struggling to make ends meet because of COVID-19. These are just some steps out of many we will continue to take to support Arizonans in need during this time — and Arizona will get through this together."

Details of Executive Order 20-11

Under the temporary UI provisions, the following individuals are entitled to UI benefits pursuant to the COVID-19 emergency:

  • An individual whose employer has permanently ceased, temporarily ceased or drastically reduced operations due to COVID-19, resulting in a reduction of wages as defined by the U.S. Department of Labor
  • An individual who, due to requirements that the individual be quarantined, is not able to work and does not have any available paid leave, even if the individual has an expectation of returning to work after the quarantine is over
  • An individual who leaves employment due to a risk of exposure or infection or to care for a family member who has been infected with COVID-19
  • An individual who under any other scenario is separated from work for reasons related to COVID-19, if the Arizona Department of Economic Security determines that such scenario is consistent with the guidance issued by the U.S. Department of Labor for Unemployment Compensation for Individuals Affected by the Coronavirus Disease 2019

In addition, the Arizona Department of Economic Security will waive these requirements for applications for UI benefits:

  • The waiting period pursuant to A.R.S. Section 23-77l(A)(5)
  • The requirement to be able and available to work, actively seeking work, and daily job contacts pursuant to A.R.S. Section 23-771(A)(3) and (4)

In adjusting employer contribution rates for the unemployment compensation fund established by A.R.S. Section 23-701, the Arizona Department of Economic Security will not charge benefits granted pursuant to these COVID-19 provisions against an employer's account.

Access the COVID-19 unemployment insurance resources here.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)
   • Kristie Lowery (kristie.lowery@ey.com)
   • Peter Berard (peter.berard@ey.com)

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