This content was published prior to the combination of Dentons Davis Brown. Learn more about Dentons Davis Brown. 

On February 25, 2021, the US Department of Labor issued guidance for state-based unemployment compensation programs.  The guidance addresses the concern that some workers lose unemployment compensation benefits if they refuse to return to work because they have concerns about COVID-related issues. 

This guidance applies retroactively and expands eligibility in the following ways:  

1. Workers who lost unemployment benefits after “they refused to work or accept an offer of work at a worksite not in compliance with Coronavirus Health and Safety Standards.” Note, this only applies to employers that are not in compliance with current standards.  While standards certainly have shifted over the last year, many employers report that they are in compliance but some employees still choose not to return due to fear of Coronavirus.  If the employer meets the standards, job service may be denied as this remains an open-fact question.
2. May provide benefits to workers who were laid off or had hours reduced as a direct result of the pandemic
3. Expands benefits for school employees working “without a contract” or reasonable assurance of continued employment who face reduced paychecks

The Big Picture

If you have employees in any of the situations addressed in the guidance, you should consult an employment attorney to evaluate whether your specific situation falls within the guidance. Depending on how payments are classified they may or may not impact the employee’s job service rating.