Michigan providing guidance to employers contemplating potential layoffs

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Posted at 3:07 PM, Mar 18, 2020
and last updated 2020-03-18 21:07:52-04

(WXYZ) — The Michigan Department of Labor and Economic Opportunity provided guidance for employers on how to avoid layoffs relating to COVID-19.

“We know that many families and businesses are and will experience economic pain as a result of the COVID-19 pandemic,” said LEO Director Jeff Donofrio. “Through Governor Whitmer’s executive action and existing state programs, there are resources for employers affected by COVID-19. We are also strongly urging job providers facing work shortages to place their employees on temporary leave as opposed to termination, so that they may remain eligible for potential federal assistance.”

If employers plan to cut back hours, they can use the Unemployment Insurance Agency's Work Share program that allows them to maintain employment levels and business operations during declines in regular business activity as an alternative to laying off workers.

LOE is strongly urging employers to place employees on temporary leave and advise the worker that they expect to have work available within 120 days, as opposed to termination.

Through this, employees remain eligible for UI benefits through the state and potential federal assistance.

For more steps on how to guide employees through the process, click here.