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Jan03

Unemployment Eligibility for Business Closure

One of our employees filed for unemployment because we were closed for the week between Christmas and New Year’s Day. We have always closed during this week and no one ever filed for unemployment before. As a current employee, is he entitled to get unemployment because the office was closed?

It’s common for businesses to close occasionally, especially during the holidays. During the closure, employers often allow employees to use their accrued paid time off to cover the time away. Employers are even able to require employees to use any accrued vacation time. Doing so is completely at the employer’s discretion and restricts the employee’s entitlement to unemployment since he was compensated for the time off.

Each state has its own unemployment eligibility criteria. Basically, to be eligible for benefits an individual must be unemployed through no fault of their own, be ready, willing and able to work, and meet time worked or wages earned requirements.

In many states, employees will be eligible for unemployment benefits if a business closes for more than one week at a time and employees are not compensated for the time away from work. So, a one week closure will most likely not entitle the employee to unemployment benefits. But, as previously stated, each state has its own regulations so it’s impossible to say so for certain.

This entry was posted on Sunday, January 3rd, 2016 at 8:31 pm and is filed under
Human Resources Management.
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