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Relief for Employers from Unemployment Filings

Client Alert

From the last 7 weeks, the total number of unemployment filings in the U.S. now totals 33.5 million, an unprecedented number comparable to the number of filings during the Great Depression. Although some state and federal funds are being used to supplement the unemployment funds, providing additional compensation to the unemployed, employers will be responsible for a very large portion of the total funds being doled out to employees. Specifically, employers will be responsible for repaying the state for up to 26 weeks of payments made to their unemployed employees, even those that are temporarily laid off and with plans to return. This financial responsibility will add up quickly for employers. 

There is good news for those facing large unemployment bills that will come due at the end of the year. Although state or federal legislators may eventually provide additional monetary relief to employers for unemployment liability, immediate relief is currently available to employers through the following options. 

1. Have employees return to work as soon as possible. 

If a company is permitted to reopen under state and local health orders, employees’ unemployment payments will stop once they return to work. This means that additional weeks the employees would spend on unemployment, if not reemployed, will not be charged to the employers’ accounts. 

2. Report to the state unemployment commissions if employees refuse to return to work.

If a company reopens and certain employees refuse to return to work without a valid, legal reason, employers should notify their state unemployment commission. For example, in Ohio, the Department of Job and Family Services established an online form that employers complete when employees refuse to return to work (located here). Employees are not eligible for continuing unemployment benefits if they are reoffered work at the same or similar pay and hours. Therefore, the completion of this form should have the effect of cutting off the employees’ unemployment benefits, thus preventing further liability being applied to the employers’ accounts. We also recommend, in addition to the online submission, employers notify their state unemployment commission, via a written letter, that an employee has refused to return to work under the same or similar pay and hours. 

Notably, if an employee is offered a return to work under reduced hours or pay, the employer should still notify its unemployment commission as the liability may be partially reduced in proportion to the hours/pay being offered. 

3. Appeal unemployment charges for former employees that previously quit or were fired from their job prior to the COVID-19 pandemic.

Finally, as discussed in a previous Client Alert located here, employers should be challenging all unemployment filings from former employees who quit or were terminated for just cause prior to the beginning of the COVID-19 pandemic. Under most state unemployment laws, employers can be liable for a former employee’s unemployment benefits up to a year from departure of employment. However, this liability may be removed or reduced if the employee quit or was terminated for just cause. Employers will need to go through the appeal process to challenge these unemployment filings as the state unemployment commission is likely unaware that the employee previously quit or was terminated. For this reason, employers must complete and timely respond to all requests for information, including the details surrounding the departure. Employers should include all relevant information, including resignation letters/emails or handbook provisions that have been violated leading to a termination. 

Bryan Meek is a member of Brennan, Manna & Diamond’s Labor & Employment team and is available to assist you with responding to requests for information and/or appealing unfavorable unemployment decisions. Bryan can be reached at 330.253.5586, or bmeek@bmdllc.com.


Valley National Bank/Trulieve Loan: A Big Step Out of the Shadows

In a late December press release, Trulieve announced that it had secured a $71.5 million commercial bank loan. In addition to the amount of the loan, which may be the largest commercial bank loan to date to a cannabis company, the release prominently identified Valley Bank and featured both a quote from Valley’s Senior Vice President, John Myers, and a description of the Bank’s service platform and commitment to the cannabis industry.

The End of Non-Competes? The Impact It Will Have on the Healthcare Industry

On January 5, 2023, the Federal Trade Commission (“FTC”) announced a proposed rule that, if enacted, will ban employers from entering into non-compete clauses with workers (the “Rule”), and the Rule would void existing non-compete agreements. In their Notice, the FTC stated that if the Rule were to go into effect, they estimate the overall earnings of employees in the United States could increase by $250 billion to $296 billion per year. The Rule would also require employers to rescind non-competes that they had already entered into with their workers. For purposes of the Rule, the FTC has defined “worker” to also include any employees, interns, volunteers, and contractors.”

2022 Healthcare Recap and 2023 Healthcare Check-Up

As the country begins to return to a new “normal” following the COVID-19 pandemic, there are many healthcare rules changing on both the federal and state levels as a result. Thus, it is important for healthcare providers and their employers to be aware of these changing rules, and any implications they may have on their practice. Look back on healthcare in 2022 and find a checklist for 2023.

Direct Support Professional Retention Payments

On December 15, the Ohio Senate and House passed House Bill 45, which authorizes the Department of Developmental Disabilities (DODD), in conjunction with the county boards of developmental disabilities, to launch their initiative to issue retention payments to Direct Support Professionals (DSPs). These retention payments will be distributed quarterly to participating home and community-based waiver providers to address the workforce crisis in the direct provider sector. Governor DeWine needs to sign the Bill to begin the payments, but he is expected to do so by the end of 2022.

Real Estate Investors Position for 2023 Opportunities

Real estate investors weathered another year in a post-pandemic world, with the year closing with yet another interest rate increase coupled with both uncertainty and heightened interest carrying into 2023. Just last Wednesday, the Federal Reserve raised its benchmark interest rate 0.50 percentage points, shifting the target range to 4.25% to 4.50%. The new level is the highest the fed funds rate has been since December 2007 and marks the seventh rate hike this year. So what does this mean to investors, brokers, lenders, and others in the real estate world? Read a few perspectives below from stakeholders familiar with our BMD clients and the markets in which they do business.