Seyfarth Synopsis: With COVID 19 responses
rapidly evolving, employers of all sizes—from major
airlines to small restaurants—are experiencing
dramatic declines in business, and a lack of work for employees. In
this time of need the government is here to help. A word here on
California Unemployment Insurance.
An employer facing business challenges that affect its workforce
might consider California's Employment Development Department
Work Sharing Unemployment Insurance Program. The EDD describes this
program as a "practical alternative to layoffs." For
example, instead of laying off 20% of a workforce, an employer
could reduce payroll by 20% and Unemployment Insurance would pay
part of the difference in wages to employees. This approach also
could help employers by reducing the need to re-hire and re-train
employees when business improves.
