Midwestern State Summary Of Unemployment Eligibility During Temporary Shutdowns

Manufacturers often find it necessary to schedule temporary plant shutdowns during the year for maintenance purposes or new model changeovers, and require employees to use their vacation during this time. Given that many of our manufacturing clients, especially in the automotive sector, operate in the Midwest, we wanted to survey the state laws in a few Midwestern states.  While forcing employees to use vacation is generally permitted in several Midwestern states, employers may be surprised to learn that different state laws could determine whether employees are eligible for unemployment benefits during the shutdown period. In some states, employees can obtain unemployment benefits for even scheduled shutdowns, and this can result in an increase to the employer's tax experience rating.