NC introduces latest weapon to fight COVID-19: unemployment insurance expansion

In an effort to combat the effects of COVID-19 on laid-off workers and businesses that have been forced to lay off workers, North Carolina Governor Roy Cooper recently waived certain eligibility requirements for individuals applying for unemployment insurance benefits in Executive Order (EO) 118. While the EO is obviously meant to benefit employees, it's also intended to ease the burden on employers by providing that charges will not be allocated to their accounts for individuals who are paid benefits for reasons related to COVID-19.

Law before the storm

Before EO 118, employees had to meet certain requirements to be eligible for unemployment insurance benefits, including:

• Meeting minimum past earnings thresholds;
• Serving a one-week waiting period before receiving benefits; and
• Being able and available to seek—and actively seeking—work.

Additionally, individuals must not have left work for a reason other than good cause attributable to the employer, and they must not have been terminated for misconduct.

When an individual leaves work because of a reduction in her work hours of more than 50 percent, it is presumed to be good cause attributable to the employer. Similarly, if she leaves work because of a reduction in her pay rate of more than 15 percent, it is presumed to be good cause attributable to the employer.