We’ve heard from more than a few members that they are having trouble getting their laid off or furloughed employees to come back to work from unemployment. The additional $600 each week while on unemployment has certainly not helped employers who have now received the Paycheck Protection Program (PPP) loan and are ready to bring back the team.
- PPP Loan Forgiveness: In order to have the PPP loan used for payroll expenses fully forgiven, you must bring back all employees (or hire new employees to match pre-crisis employee levels) by June 30, 2020.
- $600 a Week: The $600 per week unemployment benefit (known as Federal Pandemic Unemployment Compensation (FPUC) benefits) will end on July 25, 2020.
- Unemployment and Part-Time Work: Under certain conditions, a previous full-time employee could be brought back, but only part time, and they could receive unemployment benefits to cover the gap between full time and part time pay. This varies by state. However, to receive full forgiveness of the PPP loan for payroll, wages cannot be reduced more than 25 percent.
- Refusing an Offer of Work: Many states will not allow someone to continue collecting unemployment insurance if the person refused an offer of work that is suitable for their education or background.
- “Suitable Work:” Each state defines “suitable work” differently. Look up your state’s requirements here.
- What does DOL say?: View additional U.S. Department of Labor guidance.
