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03.26.2020 Newsletters Doerner

The Employer’s Legal Resource: Employers’ Options and Obligations Regarding the Unemployment Commission When Closing or Making Layoffs

As many employers are forced to close their businesses or lay off significant numbers of employees during the COVID-19 pandemic, employers may have questions as to how employees receive unemployment benefits. The OESC has specific requirements for an employer submitting a “mass claim” in connection with a mass layoff of employees.

Do I have to file a Mass Claim?

A “mass claim” can be filed by an employer when it has a temporary shutdown of eight weeks or less. The employer must have at least 25 employees affected by the layoff. It is not required (meaning there is no penalty if you rely upon your employees to individually file), but it is an option you can provide your employees.

To initiate the claim, the employer must submit an inquiry to MASSClaims@oesc.state.ok.us. The employer must then complete an excel file containing specific information on each employee (OESC will provide the information needed and the proper formatting). Ordinarily, information for filing the mass claim must be submitted to the OESC no later than 3:00 p.m. on the Wednesday prior to the layoff. But note that the OESC’s website concerning COVID-19 procedures does not provide for a set timeline, only that employers submit an inquiry and allow a couple of days for a response.

If, due to the current circumstances, employers have already closed their business and are not able to correspond with the OESC or have not submitted the required information to the OESC, then the employer shall direct their employees to file their own claims at https://unemployment.state.ok.us/.

Following the employer’s initial filing, employees will need to file weekly certifications with the OESC to receive unemployment benefits until they return to work.

Do I have any obligations if I permanently close the Business?

Yes. You must alert the OESC of this fact as well. You submit a termination form which can also be found at their website.

Final Note.

The website has additional information about Unemployment Insurance and COVID-19. However, it is not currently updated. It incorrectly advises that employees must, in some instances, search for work to maintain benefits. At this time, however, Governor Stitt and the OESC have waived the work search requirement due to the COVID-19 pandemic. This is yet another reminder of how quickly things are changing during this time. We will keep you updated as we are able.

By Lauren R. Myers, Kristen L. Brightmire and Rebecca D. Bullard
lmyers@dsda.com, kbrightmire@dsda.com and rbullard@dsda.com

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