Pennsylvania law now requires employers to provide employees with notification of the availability of unemployment insurance (UI) benefits at the time of separation from employment or reduction in hours. The Pennsylvania Department of Labor & Industry, Office of Unemployment Compensation, provides a standard notice (Form UC-1609) for employers to use to meet this requirement. (HB 68, Act 9 of 2020.)

To be eligible for federal grants under the Families First Coronavirus Response Act (FFCRA), state workforce agencies must have a provision requiring that employers notify employees at the time of layoff or reduced work of the availability of UI benefits. (U.S. Department of Labor program letter 13-20).

Note also, as we reported previously, other legislation (HB 2362) prohibits employers from terminating, depriving, threatening or otherwise coercing a worker with respect to the employment, seniority position or employee benefits that are the result of the worker's compliance with an order to isolate or quarantine. Violating employers may be penalized by the state or sued by the employee.(EY Payroll Newsflash Vol. 21, #135, 4-3-2020.)

Employers reminded of requirement to submit information when workers refuse to return to suitable work

Now that the economy is starting to resume, employers may be recalling employees who were furloughed due to COVID-19. Employers must notify the Department within seven days if an employee refuses to return to suitable work, using Form UC-1921W.

According to the Department's website, employees must return to work or risk losing their UI benefits, unless they can show good cause for refusing work. During the COVID-19 pandemic, good cause may be shown if employees refuse to return to work because they are at high risk of complications from the virus and their employer cannot made reasonable accommodations for them, the employer is violating the governor's business closure orders and opens their business prematurely, or if employees are being asked to return to work at reduced hours that result in their earning less than they did before the pandemic. Department staff will review the specific reasons for work refusal and make determinations based on the facts of their individual cases.

The Department states that if employees do return to work at reduced hours, and this results in a reduced weekly income compared to their weekly income prior to filing for UI benefits, employees may still be eligible for partial benefits plus the $600 additional weekly benefit available under the Coronavirus Aid, Relief, and Economic Security Act (the CARES Act).

Employers will not be charged for COVID-19 UI benefits

As we previously reported, contributory employers' accounts will not be charged for UI benefits received by workers affected by COVID-19. (EY Payroll Newsflash Vol. 21, #135, 4-3-2020.)

Nonprofit companies and government entities that have elected to reimburse the Department will be charged with COVID-19 benefits as normal unless the employer elected for 2020 to pay the solvency fee that allows reimbursing employers an annual opportunity to request non-charge of UI benefits under certain conditions, including unemployment caused by a disaster (go here for more information).

Act 9 of 2020 (HB 68) provides 120 days for reimbursing employers that did not pay the solvency fee to repay COVID-19-related UI benefits to the Department. An additional 60 days to repay the benefits may be requested by the employer. The Department will offer interest-free payment plans to employers that demonstrate financial hardship. No interest will accrue or be charged on late reimbursement payments paid by December 31, 2020.

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

Effective March 16, 2020 through the remainder of the COVID-19 emergency declaration, individuals unemployed due to COVID-19 are not required to serve a one-week waiting period before collecting UI benefits or to register and actively search for work each week that they receive UI benefits. See the Department's frequently asked questions for claimants for more information.

See the Department's website for more information regarding the Department's response to COVID-19.

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EY Payroll News Flash