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April 29, 2020
2020-1152

Kentucky COVID-19 UI benefits will not be charged to employer accounts; notice required to separated employees

Governor Beshear recently ordered that Kentucky employer accounts not be charged with workers' unemployment insurance (UI) benefits attributable to COVID-19. (Governor's COVID-19 website.)

The Kentucky Office of Unemployment is ordered to not allocate charges to employer accounts for individuals paid UI benefits for reasons related to COVID-19. The Office is instructed to separately account for these charges so that Kentucky can seek waiver and reimbursement from the federal government.

Recently enacted legislation (SB 150) implements the governor's UI benefits order. (Governor's news release.)

Employer notice to separating employees

The order also directs the Office to require employers to provide notification of the availability of UI benefits to employees at the time of separation from employment due to COVID-19. The Office has not yet posted information to its website regarding this new requirement.

On March 23, 2020, Governor Beshear announced changes in mass layoff parameters. Any employer with at least 50 employees who is laying off at least 15 employees is encouraged to file a UI benefit claim on behalf of their employees through the E-Claims process.

Work-search requirements and one-week waiting period are waived for workers filing COVID-19 UI benefit claims

The order and SB 150 direct the Office to waive the one-week waiting period and the work-search requirements for worker UI benefits related to COVID-19. The order also requires the Office to apply flexibility to the able-and-available-to-work requirements.

SB 150 provides for adoption of an alternative base period to determine if a worker unemployed due to COVID-19 or due to restrictions imposed by the governor's executive orders issued during the COVID-19 state of emergency has earned enough in wages to qualify for UI benefits.

UI Office authorized to apply flexibility or waiver of certain UI provisions

The governor's order (and SB 150) authorizes the Office to use flexibility or waive law provisions regarding:

  • Finding good cause for leaving work due to a reasonable risk of exposure to infection (i.e., self-quarantine) or to care for a family member affected by COIV-19
  • Expanding coverage to the self-employed and those otherwise uninsured individuals who have suffered job loss due to DOVID-19
  • Allowing workers who have not been terminated or separated from employment, but have experienced a reduction in work hours of more than 10% but less than 60% with no reduction in hourly rate, to be eligible for COVID-19 UI benefits to compensate for their temporary loss of income

For more information regarding the Office's response to COVID-19, go 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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