A Guide to Unemployment Benefits in the Age of Coronavirus (Updated)
In light of the economic crisis caused by COVID-19 (“coronavirus”), it’s crucial that you understand the basics about unemployment benefits and the North Carolina unemployment insurance system. If you lose your job, unemployment benefits can be a lifeline and small source of income to lessen the impact until you find new work. Here’s what you need to know:
(Note: there’s discussion at the state and federal levels of temporarily increasing or extending the amount of benefits and types of workers eligible for unemployment benefits, so we will be updating this blog as new developments emerge. Be sure to check back).
UPDATES:
The federal government has signed a $2 trillion economic relief plan into law to offer assistance to tens of millions of American households, including here in North Carolina, financially impacted by the coronavirus pandemic.
One highlight of the relief plan is the increase and expansion of unemployment benefits.
The relief plan provides for an additional $600-per-week increase in benefits for eligible works AND makes self-employed, service industry, and part-time workers eligible for benefits.
The relief plan also extends unemployment benefits by an additional 13 weeks (added onto the 20 weeks offered in North Carolina for a total of 33 weeks).
Who May Qualify For Unemployment Benefits:
Unemployment insurance typically provides cash benefits to eligible workers who lose their jobs through no fault of their own. Given the extraordinary crisis created by the coronavirus, Gov. Cooper has issued an Executive Order expanding benefits to the following eligible people*:
Individuals who lose their jobs;
Individuals who have had their work hours decreased;
Individuals temporarily laid off because work has slowed down due to the coronavirus*; and
Individuals who are prevented from working because of a medical condition or quarantine orders because of the coronavirus*
Applying for unemployment benefits.
In order to receive these benefits, you must first apply for them with the North Carolina Division of Employment Security (“DES”). The easiest way to do so is at DES’s website here. You will need your social security number, a summary of the last two years of your work history, details about your separation, details regarding any retirement pay you are receiving, and your banking information for direct deposit of the benefits.
What Benefits Would I Receive?
If your claim is accepted, you must provide a weekly certification to DES that you have continued to look for work. If you have returned to work, you can earn 20% of your weekly unemployment benefit without consequence. Anything earned that is more than 20% of your benefit will be deducted from your benefit.
DES determines the amount of your weekly benefit based upon your previous earnings that you must report as part of your application on a Wage Transcript and Monetary Determination (Form NCUI 550). The maximum weekly benefit is low at only $350. At present, the maximum amount of time you may receive benefits is between 12 and 20 weeks, but there has been discussion about extending this period and/or increasing the maximum weekly benefit due to the current crisis.
If your claim has been denied, you can appeal.
You will learn if your unemployment benefits were denied via a notice from DES. The denial letter will provide you specific instructions on how to appeal, but the most important thing is that you send a notice of your appeal within 30 days of the date of the determination. You can submit your appeal via the portal on the DES website, by mail to DES Appeals, PO Box 27967, Raleigh, NC 27967, or by fax to (919) 857-1296.
The Unemployment Benefits Appeals Process.
Once DES receives your notice of appeal, you will be scheduled for a telephone hearing with an appeals referee from DES. This is an evidentiary hearing, meaning that it’s your chance to present written evidence or oral testimony supporting your claim to unemployment benefits. Before your assigned telephonic hearing, you must submit all evidence and identify all witnesses you intend to call. If you are providing written evidence, be sure to send it to your employer as well as the appeals referee.
The Unemployment Benefits Appeals Hearing.
The appeals referee will invite each witness and hearing participant to the conference call at the designated hearing time. The appeals hearing is recorded, under oath, and limited to one hour. That means you must be clear, concise, and truthful at all times.
What Your Employer Has to Prove To Deny Your Benefits.
If you were fired, then your employer will have the burden of proof and will present evidence first. The law requires that your employer’s evidence be sufficient to show that your employment was terminated because of “conduct evincing a willful or wanton disregard of the employer’s interest as is found in deliberate violation or disregard of standards of behavior that the employer has the right to expect of an employee or has explained orally or in writing to an employee” or “conduct evincing carelessness or negligence of such degree or recurrence as to manifest an intentional and substantial disregard of the employer’s interests or of the employee’s duties and obligations to the employer.”
In practice, this burden can be difficult for employers to meet, as they often lack sufficient documentation supporting the termination of your employment. At the conclusion of your employer’s testimony, you will be given an opportunity to question them about their testimony. It is important for you to emphasize the lack of such documentation during this questioning so that you communicate this point to the appeals referee.
What You Have To Do and Show at the Unemployment Benefits Appeals Hearing.
Once you have finished cross-examining your employer, you will be given an opportunity to present evidence in support of your argument. This is the written evidence that you previously submitted to the referee and/or testimony from yourself or a witness. The more evidence you have that shows that it wasn’t your fault that you were fired, the harder it will be for your employer to meet their burden of proof. Therefore, you should try to present evidence that you were a good and loyal employee, like annual performance evaluations.
Upon the conclusion of your evidence, you will be given a chance to make a closing argument. As this hearing is time limited, you should keep this extremely brief, as the appeals referee is unlikely to be swayed by your rhetoric (as compared to your evidence).
How Long Does a Ruling Take?
The appeals referee will communicate their decision to you in a matter of days after the hearing. The losing side may appeal that decision to the North Carolina Department of Commerce Board of Review within ten days of the decision. That appeal, however, is based entirely on the evidence presented to the appeals referee. The Board of Review is not allowed to consider new evidence and will only overturn the previous decision if there was a mistake of law. It is therefore extremely important that you present your best evidence to the appeals referee and effectively cross-examine your employer’s witness during your initial appeals hearing.
What If I Win My Unemployment Benefits Appeal?
If you prevail on your appeal with the appeals referee, your benefits will be reinstated back to the initial date of your application.
How we can help.
Appealing the denial of your unemployment benefits can be daunting. But you are allowed to be represented by an attorney when making your case to the appeals referee and can benefit from having an experienced unemployment benefits lawyer help you through this process. If you have any questions about what this process entails or if you would like to be represented in unemployment benefits hearing by an attorney, please give us a call or contact us through the website.