A partial layoff can take several forms, including furloughs and a reduction in hours. Often, employers take these measures when business is slow, but they do not want to lose valuable employees and deplete their talent pool despite the lean times.
California requires an additional administrative hurdle for employees to collect unemployment benefits: form DE 2063. This form must be used in limited circumstances where full-time employees experience a reduction in earnings due to a lack of work. These unprecedented times have forced the EDD to take action and expedite these claims.
The EDD has announced that, due to the “sudden and immense impact of the COVID-19 pandemic on businesses and workers and the unprecedented demand for UI benefits,” employers should not use DE 2063 for the time being. Rather, the EDD recommends employers: (1) inform their working or laid-off employees to apply for UI benefits online for the fastest way to file; and (2) inform their employees that after they apply for UI benefits online and their claim is processed, to certify for continued benefits for every two-week period by logging into their UI Online account for the fastest way to certify and receive their benefit payments.
It is unclear how long this workaround will last, so it is important to stay alert, and understand that this is likely a limited exception. Nevertheless, it is a welcome, even if temporary, relief to both employers and employees who are already reeling from the impact of social distancing and mandatory shelter in place orders.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
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