Employment & Labor Alert
(by Stephen Antonelli, Mychal Schulz and Brian Lipkin)
At this uncertain time, many employers are considering whether to lay off or furlough employees – particularly employees who are unable to work remotely. Earlier this week, we provided guidance on an alternative to layoffs and furloughs, as some employers are exploring grants and loans that are available under the new federal and state stimulus programs. With this Alert, we are providing an update on recent changes to Pennsylvania and West Virginia unemployment laws:
- Increased Benefit Amounts Normally, unemployment benefits are capped at $573 per week in Pennsylvania and $424 per week in West Virginia. Under the Paycheck Protection Program provision of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the federal government will supplement state unemployment benefits by $600 per week. Through July 31, 2020, unemployment benefits will be capped at $1,173 per week in Pennsylvania, and $1,024 per week in West Virginia. As a result, for the next four months, some workers may actually earn more in unemployment benefits than they would have earned in wages. For example, an employee who would otherwise receive $100 per week of state unemployment benefits will now receive an additional $600 per week from the federal government. After the federal supplement of $600 per week expires, the employee may continue to collect unemployment benefits at the usual rate in each state
- Expanded Eligibility Until recently, Pennsylvania and West Virginia limited unemployment benefits to certain employees. In Pennsylvania, to receive unemployment benefits, an employee must have earned at least $116 per week, during at least 18 weeks in the past year. In West Virginia, employees must satisfy two requirements within the past year: they must have earned a total of at least $2,200;