The Department of Labor and Economic Opportunity has provided guidance to Michigan employers on ways to avoid potential layoffs related to COVID-19. Explore the options they propose below.
If employers are financially distressed, but hope to continue operations by cutting back hours, they are encouraged to use the Unemployment Insurance Agency’s Work Share program. This program allows employers to maintain employment levels and business operations during declines in regular business activity rather than laying off workers.
At this time, employers are strongly urged to place employees on temporary leave and advise the worker they expect to have work available within 120 days as opposed to termination. This option provides no additional cost to employers, while allowing employees to remain eligible for unemployment insurance benefits through the state. Furthermore, employees may remain eligible for potential federal assistance.
Here are steps for employers to take when placing employees on temporary unpaid leave:
Under the governor’s order, an employer must not be charged for unemployment benefits if their employees become unemployed because of an executive order requiring them to close or limit operations.
As the outbreak continues to worsen in Michigan, Governor Whitmer is seeking additional solutions for small businesses impacted by COVID-19, such as low-interest rate loans through the U.S. Small Business Administration.
As always, Doeren Mayhew is here for you and your business during these challenging times, please contact us for assistance in navigating the uncertainty.
This publication is distributed for informational purposes only, with the understanding that Doeren Mayhew is not rendering legal, accounting, or other professional opinions on specific facts for matters, and, accordingly, assumes no liability whatsoever in connection with its use. Should the reader have any questions regarding any of the news articles, it is recommended that a Doeren Mayhew representative be contacted.
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