There are a lot of moving parts that HR has to stay on top of to effectively respond to the impact and fallout of the COVID-19 pandemic. ASE is keeping up on the employer end of this topic with a dedicated Coronavirus webpage. A survey on employer practices is being conducted to help with planning and decisions. Some preliminary data pertaining to employers’ actions around layoffs and unemployment is provided below. ASE is also adding new classes and webinars designed to keep employers and their HR professionals up to date on this fast-moving situation.
Last Friday, one more tool was made available to employers. The U.S. Department of Labor extended the right of states to change their unemployment laws in order to provide unemployment benefits due to workers that are home sick or others temporarily unemployed or find themselves quarantined and cannot work nor receive a paycheck because of it. This will allow states to open up unemployment benefits to cover job and pay loss due to the spread of this illness.
On Monday afternoon Governor Witmer followed through and issued an executive order extending Michigan unemployment benefits due to:
- Unemployment caused by unanticipated family care responsibilities, like childcare due to school closures or caring for a loved one who becomes ill
- Workers who are sick, quarantined, or immunocompromised and do not have access to paid leave or are laid off
- First responders in the public health community who become ill or are quarantined
Benefits will also be extended out to 26 weeks and the application period extended from 14 to 28 days. In-person registration for benefits and work search requirements will be suspended. (Gongwer 3/16/2020)
Early ASE survey results reflecting 96 responses indicate that 25% of respondents are considering a work stoppage or shutdown in response to the pandemic. A little over 5% of respondents stated they have already implemented a layoff or shutdown just days after the state of emergency was called. Further, survey respondents report that one of the areas they are evaluating during this event is unemployment compensation should layoffs be required. ASE’s full survey on employer response to the pandemic will be out the week of March 23rd.
The argument for softening unemployment benefits in the face of this viral outbreak is not just to provide relief to working families should they experience job loss at this time but also to prevent further spread of the virus by workers that believe they have to work to get their next paycheck even though they are sick.
Because unemployment insurance is a federally mandated program that is run by the individual states, the federal government has a say in the rules applied at the state level. A state that does not follow the federal guidelines may find themselves out of some needed tax dollars they normally would see if they did follow the rules. Until now there was no direct consideration under the federal rules about whether benefits paid due to job loss due to illness or a pandemic would be allowed. The USDOL’s rule clarification now allows the states to respond, should they so choose.
Continuing toward the expansion of state unemployment benefits availability, the U.S. House of Representatives in conjunction with the White House passed a bill on Friday enhancing unemployment benefits. The Senate is expecting to pick this up this week so the President can sign off on it in short order. The President's declaration of a national state of emergency opens the door for use of the Stafford Act. This allows for provision of unemployment benefits to any individuals who are unemployed as a direct result of the cause of the national emergency.
Michigan’s Governor and Legislature are preparing to pass a supplemental spending bill (SB151 and HB 5631) that may include money among the millions of dollars to support Michigan’s relaxing of unemployment benefits.
Additional ASE Coronavirus Resources
Webinar: Building Trust Virtually – Join us on Friday, March 20 at 10:00 a.m. for a webinar on Prelude Suite: an experiential learning platform and method for supporting virtual teams. Learn how you can improve self‐awareness, better understanding of teammates, better communication, appreciation of diverse strengths, shared vision of excellence, better task alignment, positive emotional climate, and psychological safety of your teams virtually. This webinar will be presented by kd3worz Consulting & Training. Learn more or register here.
Webinar: Michigan UIA and How to Utilize Benefits for Your Employees During the Pandemic – ASE is pleased to present, in conjunction with the Michigan Unemployment Insurance Agency, a complimentary webinar this Monday, March 23 at 1 pm. This webinar will present details on what employers need to know about using the unemployment benefits system to support their workers at this time and whether slowdowns and work stoppages resulting qualify employees for unemployment benefits. This informational webinar will also cover the following unemployment compensation program topics:
- Work Share Program
- Temporary Layoff Waivers
- Employer Filed Claims (EFC)
- Trade Adjustment Assistance
To register, click here.
Webinar: Legal and Compliance Issues Around the COVID-19 Pandemic – The legal and compliance implications around the COVID-19 pandemic are evolving quickly. On March 26th, ASE will be hosting an informational webinar on some of the most timely and topical legal issues presented by this pandemic. During this online session, attorneys from Fragomen Del Rey, Bernsen & Lowey, PLLC and Barnes & Thornburg, LLP will discuss COVID-19’s effect on employment landscape as well as immigration and mobility. Topics discussed will include:
- Understanding compliance issues and obligations under applicable state and federal laws.
- Understanding current immigration and mobility related issues including the status of current travel restrictions.
For more information or to register, click here.
Course: Managing a Virtual Workforce – As employers implement remote work in response to the pandemic, ASE’s Managing A Virtual Workforce is scheduled for Thursday, April 2. Participants will learn the benefits and challenges of virtual work and the benefits to employers and employees. The importance of strong, engaged management will be discussed along with effective management practices to assure successful virtual teams. Learn more or register here.
COVID-19 Compensation Practices Survey - ASE is conducting a survey to discover what actions employers are taking in response to Coronavirus with regards to employee compensation. ASE members will receive free results. Non-members that participate in the survey will also receive complimentary results. Participate here.
McLean & Company - ASE members have access to a suite of tools from McLean & Company to help you manage your organization during this worldwide pandemic. Members can access the McLean & Company tools and resources here. Login via the ASE Member Dashboard is required.
ASE Coronavirus Updates – ASE has created a Coronavirus web page with important links and information that is updated daily. The page can be found here .
Sources:
U.S. Labor Department Allows Jobless Benefits for Coronavirus Reuters 3/12/2020
House Passes Coronavirus Relief After Democrats Strike Deal With White House New York Times 3/14/2020,
CBS News. Trump Announces Declaration of National Emergency Over Coronavirus 3/13/2020
Opinion: Change the Rules on Unemployment Benefits to Help Protect the Economy from the Coronavirus Jay Zagorsky Sr. Lecturer Boston University’s Questrom School of Business 3/6/2020
American Society of Employers Coronavirus Survey (preliminary results as of 3/14/2020)
Gongwer. Whitmer Expands Unemployment Benefits 3/16/2020