As employers apply for the federal government Paycheck Protection Program (PPP), a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll during the COVID-19 crisis, they are also taking action to recall their laid off and furloughed employees.
How to Recall a Laid Off or Furloughed Employee
To recall an employee from a laid-off or furloughed status, employers should send the employee a formal recall notice to return to work with a form the employee should complete before resuming work.
Challenges for Employers
Some employers have reported employees who have been laid off or furloughed are declining the employer’s invitation to come back to work due to the fact that the employee is earning more income on unemployment than they previously did working for the employer. Aside from income, the perceived safety of the employee and the employee’s family provided by staying home is another motivator for employees to stay put.
However, if the employer has work and there is no known risk at the workplace of COVID-19, fear can’t be the basis to refuse work and continue unemployment. If a copy of the recall notice to the employee is received by a state’s unemployment agency, it’s possible the agency will discontinue the employee’s unemployment benefits due to the work available to the employee.
Our Mission of Service
Our team at North Risk Partners will continue to monitor regulatory updates and guidance related to the COVID-19 outbreak and send you information as it becomes available. We are here to help you through this and face the risk of this virus head on, which to us is about helping you proactively control what you can control with facts and evidence-based information. Thank you for continuing to trust us with your business and doing your part to help protect our communities by controlling the spread of COVID-19.
If you have questions related to this update, please contact your North Risk Partners advisor. Don’t have an advisor? No problem. We’ll help you find one.
This regulatory update is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel for legal advice.