Small Business Unemployment Insurance Changes in North Carolina Due to Coronavirus

Owning a small business or working for one offers many perks on top of being the backbone of American society.

However, what do small businesses and their employees do when something catastrophic happens, such as what we are seeing right now?

Coronavirus is impacting every aspect of people’s lives, especially in the workforce. Small businesses are being asked close doors due to Social Distancing, employees are having to face layoffs yet both businesses and employees do not have the funds to sustain time off.

If you own a company and are forced to move forward with layoffs or closures, there are still ways to get help.

Governor Roy Cooper’s COVID-19 Executive Order in North Carolina

On March 17, 2020, Governor Roy Cooper issued an Executive Order in order to combat the spread of COVID-19, while a majority of the order had to deal with mandatory closures of bars and restaurants for dine-in customers, Governor Cooper also added additional protections and measures to ease the burden of unemployment benefits for employees and employers alike.

This new Executive Order will make it easier for employees affected by COVID-19 to obtain unemployment benefits through five key points.

The one week waiting period for unemployment benefits has been suspended.
Employees collecting unemployment will not be required to look for another job to obtain benefits. This encourages people to practice proper social distancing as well as acknowledging the fact that many employers will be looking to re-hire their workers once this is over.
Employees who have had their hours cut back can seek unemployment benefits.
Employees can apply online or over the phone and do not need an in-person interview to obtain benefits.
Employers will not be held responsible for any employees seeking benefits due to COVID-19. This means that employers will not be charged any additional state unemployment benefits taxes because an employee has lost their job or face temporary layoffs related to COVID-19. Normally, employers pay an unemployment payroll tax based on their number of workers with the rate rising with the level of job cuts. This will not be the case for employers that have had to cut jobs due to COVID-19.

Slowing Impact of Coronavirus on the North Carolina Economy

The goal of these changes is to lessen the hit on the economy and employee’s wallets. People want to work and businesses want to stay open, but the reality is that during this time many cannot.

There is hope that there will be additional help coming from the federal government in the coming days, but these measures enacted in North Carolina will help ease some of the burdens until that help comes.

Many businesses have stepped up during this time to help their employees, customers, and communities, but the reality of losing jobs and customers is still prevalent.

COVID-19 Will Test the Effectiveness of North Carolina’s Unemployment Insurance Benefits Program.

Current projections show an increasing number of service-sector businesses (restaurants, bars, retailers, etc.) having to let employees go due to closing for weeks if not months or reducing operational hours. Employees will be drawing unemployment benefits due to lost jobs through no fault of their own. Fortunately, North Carolina has $3.8 billion in its unemployment trust fund, which legislative leaders have said could be tapped to help affected workers.