Your Part-Time Employees Can Collect Unemployment Benefits

By March 6, 2018July 20th, 2018Newsletter

If your employ part-time people, imagine someone coming up to you and saying that one of those part-time employees is collecting unemployment benefits while, at the same time, being paid wages by your organization.

“Can they really collect unemployment?” is an inevitable next question.

The answer is yes. Depending on the circumstances, and on your state’s regulations, an individual may be able to both work part-time and collect unemployment benefits — albeit at a reduced dollar amount.

This concept is referred to as partial unemployment benefits.

All states provide for the payment of partial unemployment benefits when a workers’ underemployment reaches a certain level.

So, your part-time worker may be eligible for benefits if for example,

  • The employee was laid-off from a full-time job elsewhere before you hired him and the wages you are paying him are lower than the state-determined weekly benefit amount (WBA) that was based on earnings from a former employer.
  • The employee was employed full-time by you, but you reduced that person’s level of employment to the point that the wages you are paying to that person are less than their WBA based on their earnings while working full-time with you.

Since each state has their own formula for calculating weekly benefit amounts, the amount of partial benefits that an employee will receive will vary from state to state.

To strategize, discuss best practices, and to learn more about your state’s partial benefit calculation, please contact us at 800.442.4867.

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