COVID-19: Employee on Unemployment Who Refuses a Rehire Offer; Impact of Rehire Refusal on PPP Loan Forgiveness; New York Shared Work Program

New York Unemployment Insurance Benefits

• A general unemployment insurance benefits guide for employers, including how to notify the Department of Labor if an employee on layoff refuses rehire or fails to report to work, how to respond to a Notice of Potential Charges, and contesting Unemployment Insurance charges is available here: https://labor.ny.gov/formsdocs/ui/IA318.2.pdf
• Eligibility requirements and other FAQs on NY Unemployment are available here:https://www.labor.ny.gov/ui/claimantinfo/beforeyouapplyfaq.shtm
• The Record of Employment document to be given to every employee who quits, is laid off, or is discharged is available here: https://www.labor.ny.gov/formsdocs/ui/IA12_3.pdf
• Employers are reminded that they may have a duty to accommodate employees with underlying health conditions via a leave of absence

PPP Forgiveness Update

• For those who received PPP loans, the SBA has issued updated guidance for the situation where a borrower laid off an employee, offered to rehire the same employee, and the employee declined the offer, and this situations effect on PPP forgiveness and the employee’s unemployment eligibility. For more information, see Question 40 here: https://home.treasury.gov/system/files/136/Paycheck-Protection-Program-Frequently-Asked-Questions.pdf

New York Shared Work Program

• New York has a Shared Work Program that allows employers to reduce employees’ work hours and corresponding wages by 20 to 60%, which then allows the employee to collect partial unemployment benefits while at the same time providing an employer an alternative to a mass layoff
• A summary of the Shared Work Program is available here: https://labor.ny.gov/formsdocs/ui/SW1.pdf
• FAQs on the Shared Work Program are available here: https://labor.ny.gov/ui/claimantinfo/sharedworkclmtfaq.shtm#0

 The Attorneys at Levene Gouldin & Thompson, LLP are available to provide advice and counsel concerning matters related to COVID-19.