If an employer lays off employees during a severe pandemic, will the employees be eligible for unemployment insurance? Will the employer’s unemployment taxes go up?

Only the state agency responsible for administering the unemployment insurance (UI) programs in the state can make eligibility determinations.  In general, if a worker is laid off due to a shut down caused by an influenza pandemic, the worker would be eligible for UI benefits if the worker meets all other program requirements.  For example, the worker must be able to work and available for suitable work.  The state will determine whether an employer’s account will be charged for benefits paid and in some cases, it may cause the employer’s tax rate to go up.  The state agency will advise employers regarding any changes to their tax rates.

More information is available at: ows.doleta.gov/unemploy/aboutui.aspor by calling the U.S. Department of Labor’s Employment Training Administrationat 1-866-4-USA-DOL (1-866-487-2365).

Note: As an overall matter, employers should be guided in their relationship with their employees by federal, state, and local employment law, and by the company-specific application of these laws as reflected in employee handbooks, manuals, and contracts (including bargaining agreements).

Not all of the employment laws referenced apply to all employers or all employees, particularly state and local government agencies.  For information on whether a particular employer or employee is covered by a law, please use the links provided for more detailed information.  This information is not intended for federal agencies or federal employees -- they should contact the U.S. Office of Personnel Management (OPM) for guidance.