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What to consider when laying off employees due to COVID-19. Learn More

COVID-19 and Employee Layoffs

We have received many questions about how to lay off employees due to the Covid-19 shutdown. The answer may require consideration of how many employees you have and how many will be laid off.  This may require further discussion.

At a minimum you must provide the following:

1. Paycheck for all hours worked until separation including all accrued but unused vacation time, bonuses and commissions, and any other earned compensation.  

If you cannot calculate what bonuses or commissions have been earned up to the date of separation, this requires a separate discussion. The paycheck must be provided at the time of termination or within 72 hours if an employee quits without providing 72 hours’ notice.

2. Notice to Employee as to Change.

Code 1089 requires that employers provided separated employees with written notice of the employee’s change in relationship with the employer. https://www.edd.ca.gov/Payroll_Taxes/pdf/NoticetoEmployeeastoChangeinRelationship.pdf.

3. “For Your Benefit, California’s Program for the Unemployed” pamphlet published by the EDD (Form 2320)

This form published by the EDD is required to be provided to any employee who is being laid off, terminated, or placed on a leave of absence on the last day of employment. https://www.edd.ca.gov/pdf_pub_ctr/de2320.pdf

4. COBRA and Cal-COBRA Notices. 

Employers should obtain these forms through your health insurance provider. Includes the Health Insurance Portability and Accountability Act (HIPAA) certificate of group health plan coverage to all terminated employees who are participating in the group health plan at the time of termination.

5Health Insurance Premium (HIPP) Notice (DHCS 9061)

For employers with 20 or more employees, the Department of Health Care Services requires that employers provide terminated employees with the Health Insurance Premium Payment (HIPP) notice. https://edsd.org/wp-content/uploads/2017/09/5.g.-Notice-to-Terminating-Employees-HIPP-Program.pdf

6. California Labor Code Section 2808(b) requires employers to provide to employees, upon termination, notification of all continuation, disability extension, and conversion coverage options under any employer-sponsored coverage for which the employee may remain eligible after employment terminates.

I recommend you visit the link below and read about news on additional benefits going into effect April 1. 2020.  https://www.californiaemploymentlawreport.com/2020/03/families-first-coronavirus-response-act-enacted-by-the-president-what-employers-need-to-know/

I hope this helps.  Let me know of any questions.