Unemployment Claims Spike, Options Offered By GA: Coronavirus

GEORGIA — Georgia Labor Commissioner Mark Butler said Thursday that Atlanta’s initial claims drastically increased in March.

Due to the effects of the coronavirus, all metropolitan statistical area’s throughout the state saw a dramatic incline in initial claims along with the unemployment rate.

“Although we are seeing the effects of COVID-19 throughout the state in spikes in unemployment, we are working very diligently to come up with solutions to get Georgians back to work as soon as it is safe to do so,” Butler said.

On Monday, Gov. Brian Kemp announced that certain businesses will be able to reopen on Friday. The governor spelled out a timeline for many types of businesses — from hair salons to restaurants and movie theaters — as well as churches to reopen to gatherings.

Beginning Friday, Kemp said, gyms, fitness centers, bowling alleys, body art studios, barbers, cosmologists, hair designers, nail care artists, estheticians and their schools, and massage therapists can reopen statewide, following social distancing guidelines.

In a press release from Wednesday, Kemp and the Georgia Department of Labor said they are partnering so Georgians understand their unemployment options as the state begins the reopening of businesses. Butler encouraged employers to work with employees to determine a successful return to work plan.

“Thanks to Governor Kemp and his support, we were able to issue an emergency rule that increased the earnings exemption amount from $55 to $300 allowing individuals to make $300 a week without reducing their weekly benefit amount,” Butler said. “If a business opens back up slowly and their employees are returning to work with reduced hours, employers can continue to file employer-filed partial claims on behalf of their employees.”

Pursuant to the emergency rule issued on March 26, an individual can make up to $300 per week without reducing their maximum weekly benefit amount, allowing employees to work reduced hours and still qualify for state weekly benefits and the federal $600 weekly supplement.

“As we take measured steps to reopen sectors of our state’s economy, it is vital that we continue to support Georgians trying to re-enter the workforce,” Kemp said. “Commissioner Butler and the Department of Labor are working around the clock to do just that. Their action under historic circumstances will continue to give our state’s workforce viable options to put food on the table for their families as we fight COVID-19 together.”

Employer-filed partial claims account for 75 percent of the state’s 1.1 million claims since March 14. Employers are required to report an individual’s weekly gross wages when certifying on behalf of the employee with the Georgia Department of Labor. These employer-filed partial claims can include full-time and part-time employees, as long as employers are accurately reporting an individual’s weekly wages. An employer’s account will not be charged for claims filed against it for employer-filed partial claims during this time.

“Despite claims to the contrary, returning to work does not automatically eliminate an individual’s state unemployment eligibility,” Butler said. “In fact, we designed this provision to encourage employers to continue to file while returning employees to work to take advantage of the CARES Act (Coronavirus Aid, Relief, and Economic Security) benefits."

The rule states that earnings of $300 or less will not affect entitlement to benefits. Any amount over $300 will be deducted from a claimant’s weekly benefit amount, a payment determination based on an employee’s past wages. As long as a claimant is awarded at least $1 in state benefits, he or she is eligible to receive Federal Pandemic Unemployment Compensation, the additional $600 weekly payment.

“This option was created with lower wage employees in mind,” Butler said. “Allowing Georgians to supplement their income by making an additional $300 or so a week while continuing to receive state benefits, and now the federal supplement, will allow them to continue to heal from the economic wounds brought about by COVID-19.”

If a decision is made by an employee to separate from his/her place of employment, the employee has the right to file an individual claim where an eligibility determination will be made based on the facts presented in the case.

“If an employee is concerned about returning to work due to exposure to COVID-19, we are encouraging employees to communicate with their employers on plans to safely return to work,” Butler said. “We are all working together on getting Georgians back to work in a safe and stable environment.”

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This announcement comes after the state said that in Atlanta, the unemployment rate increased nearly one percent in March, reaching 4.2 percent. A year ago, the rate was 3.5 percent.

The number of unemployment claims went up by 1,648 percent in March, which directly correlated with the number of temporary lay-offs associated with coronavirus. When compared to last March, claims were up by about 2,093 percent.

Atlanta ended March with 2.8 million jobs. That number increased by 5,600 from February to March and was up by 43,000 when compared to this time last year.

The labor force decreased in March by 14,000 and ended the month with 3.1 million. That number is up 49,000 when compared to March 2019.

Atlanta finished the month with nearly 3 million employed residents. That number decreased by about 40,000 over the month and is up by 25,000 when compared to the same time a year ago.

Information on filing an individual unemployment claim, details on how employers must file employer-filed partial claims, and resources for other reemployment assistance can be found on the agency’s website.

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