The coronavirus
pandemic is creating unprecedented challenges, both for public health and the
economy—and those challenges are causing many businesses to lay off their
employees and shutter their doors, at least for the time being.
If your business is
having to lay off employees, the process can feel overwhelming and confusing.
Let’s take a look at some of the most common questions about how to navigate
employee layoffs and terminations in California—and, more importantly, the
answers you need to navigate layoffs during the coronavirus:
Q: What information do I need to get my employees to ensure they
have what they need to file for unemployment benefits?
A: When your employees
file an unemployment insurance (UI) claim with the Employment Development
Department, they’ll need the following information:
·
Your
official company name (as it appears on their pay stub or W2)
·
Company
contact information, including both mailing and physical addresses, direct
supervisor’s name, and company phone number
·
Their
last physical work day
·
Gross
earnings in the last week they worked, beginning with Sunday and ending with
their last day of work
If you want to make
the process easier for your employees, you can provide this information at
their termination meeting so they have it readily available when they apply for
UI benefits. (You can access their earnings information through Hourly’s Payroll function
and information on hire date on each employee’s individual W4.)
Q: How do I confirm my employee’s unemployment status with the
Employment Development Department?
A: Once your employee
files a UI claim, you’ll receive a Notice of Unemployment Insurance Claim Filed from the EDD through the mail. Unless you wish to dispute the
claim, there’s nothing you need to do. If there is any incorrect information on
your employee’s claim (for example, the time of termination), you’re required
to return the form with the correct information within 10 days of receipt.
Q: Is it even legal for me to lay off all of my
employees—especially suddenly and without warning?
A: Under normal
circumstances, the California WARN Act
requires employers to give employees and state and local representatives 60
days notice before moving forward with mass layoffs.
However, we’re not
operating under normal circumstances—and many businesses are having to close
their doors immediately, both to protect their employees’ safety and to comply
with the current statewide shelter in place order.
In response, Governor
Newsom has issued Executive Order N-31-20,
which temporarily suspends the WARN Act’s 60-day notice requirement. There are
still, however, a number of requirements employers have to meet in order to
remain compliant with the WARN Act, including providing written notice to all
affected employees, the EDD, the Local Workforce Development Board, and the
chief elected official of each city and county government where the closure
and/or layoffs are taking place. (For more on WARN Act requirements and what
needs to be included in your written notice, visit the EDD’s COVID-19 WARN FAQ page.)
Q: When do I give my employees their last check—and what needs
to be included?
A: The appropriate
time to give your employee their final paycheck is at their termination
meeting. Their final paycheck needs to include any outstanding money owed to
the terminated employee, including any accrued PTO.
To process and print a
termination check through Hourly, follow these steps:
·
Choose
“Payroll” in the navigation bar;
·
Choose
the employee you are terminating;
·
Ensure
the direct deposit option is off;
·
Confirm
all hours worked during the week are entered into the timesheet;
·
Navigate
to “Manual Timesheet” and add any accrued PTO hours and/or sick pay;
·
Return
to the Payroll screen;
·
Select
the terminated employee;
·
Click
“Pay” in the upper right of the screen;
·
Choose
the “Print at Home or Office” option;
·
Click
“Run” at the bottom right of the screen;
·
Confirm
Payroll Run
Once you go through
these steps, the check will be sent straight to your email address on file—that
way, all you have to do is print and you’re ready to go.
Q: With social distancing in full effect, how do I make sure my
employees get their final paycheck in a timely manner?
A: Under normal
circumstances, you would terminate your employee and give them their final
paycheck in person. But the coronavirus—and accompanying social distancing—is
changing the way we interact; in order to protect the safety of yourself and
your employees, an in-person meeting might not be possible. You still, however,
need to get them their final paychecks in a timely manner.
Unfortunately, this is
a new situation—and, as such, there’s no clear answer as to how to handle the
situation and what constitutes a “timely manner.” If you’re unclear, talk to
your lawyer or call the EDD or the Labor Commissioner’s Office for additional guidance.
Q: What about insurance?
A: If you offer
health, dental, vision, and/or medical reimbursement plans, you’ll need to
provide terminated employees with a COBRA notice outlining their
rights for continued coverage. You’ll also need to contact your insurance
carrier and fill out any paperwork necessary to terminate the employee’s
coverage.
Q: What other steps do
I need to take when terminating an employee?
A: There are a few
other housekeeping issues you’ll want to take care of when laying off
employees, including:
·
Collecting
any company property (cell phones, tools, company computers, etc.)
·
Terminating
access to any sensitive company information
·
Cancelling
or removing access to any company accounts or credit cards
Q: Is there any
support available to help employers prevent layoffs during the coronavirus
pandemic?
A: There is. Both the
federal government and the state of California
are moving forward with initiatives to help employers during the coronavirus
pandemic.
Rapid Response Team
If you’re considering
large-scale layoffs or closing your business, Rapid Response Services
may be able to help. Rapid Response is a business-focused program designed to
assist companies facing potential layoffs and closures. If you need assistance,
the Rapid Response team can meet with you to discuss your options—including
ways to potentially avoid layoffs or closing your business—as well as provide
transitional services to affected workers facing job losses.
Payroll tax extensions
If you’re experiencing
financial hardship as a result of COVID-19, the EDD is allowing businesses to
request an up to 60-day extension to file state payroll taxes and/or deposit
state payroll taxes without interest, penalties, or fines. In order to qualify,
businesses need to request an extension in writing within 60 days of the
original due date of the payment or return.
Q: What should I do if I have to slow down operations or cut
down on employee hours? Do I have to lay off my team so they can apply for
unemployment?
A: The state of
California’s Unemployment Insurance (UI) Work Sharing Program is an alternative that may be able to help prevent layoffs in
your business—while also making sure your employees are eligible for
unemployment benefits while their hours are reduced or cut.
There are strict
employer requirements for the Work Sharing Program, including restrictions on
how much hours and wages can be reduced. For the full eligibility requirements
and to apply for the Work Sharing Unemployment Insurance plan, visit the EDD's website.
Q: How can I make sure terminating my California employees
doesn’t result in legal action or a wrongful termination suit?
Clearly, the
coronavirus is the reason behind the vast majority of layoffs at the moment.
But regardless of the reason, in order to protect yourself, your business, and
your employees, it’s important to make sure you follow California law, federal
law, and applicable employment law (state or federal) when ending the
employment relationship.
While California is an
at-will employment state (which means California employers can end the
employment relationship at any time, for any reason), there are certain
exceptions. Moving forward with a layoff or a firing for any of the following
reasons could result in an accusation of wrongful termination:
·
Discrimination,
including based on gender identity, age, race, disability, citizenship status,
national origin, medical status, sexual orientation, or religion;
·
Retaliation
(for example, for filing a worker’s compensation claim, taking medical leave,
or coming forward with sexual harassment allegations); or
·
Violation
of Public Policy (for example, refusing to work in an unsafe or illegal work
environment or refusing to partake in an illegal activity as part of their job
responsibilities)
If you have an
employment contract in place with your employees, it’s also important to ensure
that you comply with the terms of your contract during the termination process.
This article was
contributed by Deanna deBarai and originally posted on Hourly.io
0 Comments
PLEASE DO NOT ENTER ANY SPAM LINK IN THE COMMENT BOX.