Tuesday, March 17, 2020

RELIEF: Ohio Provides Some Cover for Employers and Employees in Wake of COVID-19

By Patrick Watts*

On March 15, 2020, Ohio Governor Mike DeWine held a press conference and announced an executive order granting the Ohio Department of Job and Family Services (“ODJFS”) authority to suspend some eligibility requirements for unemployment compensation and to expand the reasons for which employees may receive unemployment compensation. According to the ODJFS website, the following changes were made:

  • the individual waiting period for unemployment benefits was suspended;
  • the requirement that individuals must actively seek work was suspended for applications related to the coronavirus outbreak;
  • allowing for unemployment compensation when employees are not offered paid leave and are quarantined by a medical professional or by their employer; and,
  • allowing for unemployment compensation when employees are not offered paid leave and their employer temporarily closes operations.

Under most circumstances, employees who choose to self-quarantine will likely not be eligible for unemployment compensation. However, because of these changes, employees who are quarantined by their employer or by a medical professional will generally be eligible for unemployment compensation if their employer does not provide for paid leave.

The ODJFS website also states that fees typically assessed to employers for late reports and late payments will be waived. Additionally, the ODJFS website reports that unemployment compensation payments paid to employees as a result of a shutdown due to the coronavirus outbreak will be paid from the “mutual” account. This will result in favorable tax treatment for those employers.

All levels of government are making rapid changes to many employment laws. Due to the speed in which governments are making these changes, misinformation has circulated, including from other law firms. We will continue to monitor this situation carefully and responsibly and will provide additional information as it becomes credible and available.

*Patrick Watts, an OSBA Certified Specialist in Employment & Labor Law, regularly advises clients on all employment related matters, including unemployment compensation. If you have questions about these changes to Ohio’s unemployment compensation law or any employment law questions, please contact Patrick at pmw@zrlaw.com or (216)696-4441.