Business owners are facing the challenge of having to furlough or lay off employees due to business slow-down or shutdowns. Equally challenging is the decision to call an employee back to work, after a lay-off.

Many businesses have secured Payroll Protection Program (PPP) Loan Assistance, others are now in the process of reopening. Employees who have successfully applied for PA unemployment may be receiving more than they did on the job. Some businesses have indicated that employees are refusing to return to work.

Per state law, absent “good cause,” it constitutes an act of fraud to refuse suitable work in order to receive unemployment benefits. The Department of Labor & Industry even has a page on its website (see link) solely for employers to report refusals to work.

www.uc.pa.gov/forms/Pages/UC-1921W-Refusal-of-Suitable-Work.aspx

Additionally, employers who have received PPP loans may be forgiven if they keep employees on payroll. However, if employees continue collecting benefits, their employer’s loan forgiveness may be jeopardized, costing small businesses and nonprofits hundreds of thousands, if not millions of dollars.

To learn more about employment related issues, see the recording from Shift. Sustain. Succeed. on May 5th by clicking here.

This article was published in the Venango Chamber’s May 2020 VenangoWorks! Newsletter.