Massachusetts Unemployment for Workers Affected by Coronavirus
Many businesses and employees are already hard hit by COVID-19, and many more will be as social distancing measures continue. State and federal governments have recently passed numerous measures meant to assist workers and businesses affected. Nonetheless, both the virus itself and the necessity to restrict movement and commerce puts many jobs in jeopardy.
The immediate impact of COVID-19 could be seen in a single day. On Monday, March 16, nearly 20,000 people filed for unemployment in Massachusetts. This was higher than the total number of unemployment claims in the entire month of February 2020.
If you are laid off or furloughed, it is important to understand the rules governing unemployment insurance benefits and changes to those rules by recent emergency legislation.
If you are an employer, it is also important to understand these rules. You may be facing tough choices about your expenses during the coronavirus outbreak. If you are considering temporary layoffs, you should know if your workers will qualify for benefits and what impact that will have on your business.
The immediate impact of COVID-19 could be seen in a single day. On Monday, March 16, nearly 20,000 people filed for unemployment in Massachusetts. This was higher than the total number of unemployment claims in the entire month of February 2020.
If you are laid off or furloughed, it is important to understand the rules governing unemployment insurance benefits and changes to those rules by recent emergency legislation.
If you are an employer, it is also important to understand these rules. You may be facing tough choices about your expenses during the coronavirus outbreak. If you are considering temporary layoffs, you should know if your workers will qualify for benefits and what impact that will have on your business.
Eligibility for Unemployment GenerallyThe general rule is that you can receive unemployment benefits in Massachusetts if you:
There is usually a one week waiting period before applying for benefits. Workers receiving benefits are also required to attend certain seminars designed to help in their search for new employment. Special Challenges Created by COVID-19The coronavirus outbreak creates special challenges for the unemployment system. The sheer volume of displaced workers will stress the system, and may cause delays in processing applications.
In addition, being quarantined for several weeks does not fit neatly within the existing guidelines. The existing rules also do not clearly cover a situation in which you feel you must stay home out of a reasonable concern over catching the virus. Finally, the unemployment system is funded by charging employers based on their unemployment history. An employer who has more claims against the unemployment fund will pay more into the fund than one with fewer claims. Under ordinary circumstances, this provides some incentive for employers not to lay off workers. This system is simply not set up for a situation like the COVID-19 outbreak. Some businesses are being mandated to shut down. Others simply cannot maintain a full payroll with severely reduced revenue as consumers shelter in place. Recent Legislative Response to CoronavirusNew rules put in place over the past week specifically allow people to collect unemployment benefits if they cannot work because they are in quarantine or because they cannot report to work due to a reasonable concern about contracting the virus.
Massachusetts has also waived the one week waiting period for unemployment benefits, meaning you can apply immediately after you lose your job. Additional changes include:
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Unemployment Tips for Workers Affected by COVID-19
Unemployment claims should be filed electronically, using this link. The Department of Unemployment Assistance has suspended in-person services in order to control the spread of the virus. If you have questions about your application or need additional assistance, the DUA has provided a contact form.
You should file your claim as soon as you learn of a layoff or reduction in hours. You no longer need to wait a week to apply.
When you file your claim, there is an option to select whether you want electronic notifications or regular mail notifications. Because in-person services will be limited for the foreseeable future, it is probably a good idea to select electronic notifications. Be aware, however, that DUA emails often get caught in spam filters, and it is easy to miss important notifications with deadlines. If you choose this option, you should regularly check all clutter, spam or junk folders in your email.
You should file your claim as soon as you learn of a layoff or reduction in hours. You no longer need to wait a week to apply.
When you file your claim, there is an option to select whether you want electronic notifications or regular mail notifications. Because in-person services will be limited for the foreseeable future, it is probably a good idea to select electronic notifications. Be aware, however, that DUA emails often get caught in spam filters, and it is easy to miss important notifications with deadlines. If you choose this option, you should regularly check all clutter, spam or junk folders in your email.
Tips for Businesses Affected by COVID-19
If you are among the businesses that have been ordered to close, you probably have already had to lay off workers. Other businesses may feel the pinch immediately or over time, depending on what products or services you offer.
If you cannot afford to continue your existing payroll, including responsibility for sick leave for affected workers, you may have no choice but to let some people go. In that case, you should make sure you follow all best practices for termination.
It is also a good idea to document which layoffs or hours reductions are based on the COVID-19 outbreak. If there is relief in sight for employer charges for unemployment, you will want to be able to demonstrate that these layoffs were related to coronavirus.
If you cannot afford to continue your existing payroll, including responsibility for sick leave for affected workers, you may have no choice but to let some people go. In that case, you should make sure you follow all best practices for termination.
It is also a good idea to document which layoffs or hours reductions are based on the COVID-19 outbreak. If there is relief in sight for employer charges for unemployment, you will want to be able to demonstrate that these layoffs were related to coronavirus.
How Can We Help?
We can help answer your specific questions about managing this COVID-19 crisis. We routinely conduct consultations and meetings by phone or video-conference, so you can reach out without increasing your exposure to the virus. You can use the button below to schedule a call back from a member of our team, give us a call at 781-784-2322, or fill out our web form to let us know a little more about your situation.
