UPDATE (March 30, 2020): Under normal circumstances, if an employer offers vacation, sick leave, or PTO time to employees, the employees must exhaust those benefits prior to claiming unemployment benefits.  On March 30, 2020, Iowa Workforce Development announced that effective as of that date, employees who are or will be laid off, or who are unable to work for reasons related to COVID-19, will no longer be required to use all paid leave prior to being eligible for unemployment insurance benefits.  This change in policy resulted from the enactment of the CARES Act, which President Trump signed into law on March 27, 2020.  It is important to note that according to Iowa Workforce Development, this change is not retroactive and claims will not be backdated prior to the week of March 29, 2020, for new or existing claims by individuals who work for employers. 

Under normal circumstances, only employees who have a reduction in hours or who are involuntarily laid off by their employer through no fault of their own would be eligible for unemployment benefits.  In the case of employees who are filing UI claims as a result of COVID-19, however, Iowa Workforce Development is temporarily allowing a broader eligibility standard than normal.  For example, employees who are unable to work for the following COVID-19-related reasons will be presumed eligible for unemployment benefits – employees who are out of work due to:

• Caring for a family member;
• Loss of childcare or school closures;
• Employer shut down;
• Need for the employee to self-quarantine;
• Employee contracts COVID-19 and is unable to work.

Yes, provided that the employee satisfies the eligibility requirements for unemployment benefits.  The relevant inquiry is not based on hours worked, but rather on the employee’s weekly earnings and eligibility. 

If an employee is claiming unemployment benefits but returns to work on a short-term basis (to assist with an emergency situation, for example), the employee will need to report the gross weekly earnings associated with that work to Iowa Workforce Development (and earnings must be reported on the weekly claim during the week the wages are earned, not the week they are paid).  All weekly earnings must be reported, and certain earnings may reduce the employee’s unemployment benefits.  

An employee who remains eligible may collect unemployment benefits for up to 26 weeks. 

If the associate dentist is an employee of the dental practice and meets the eligibility requirements for benefits, the associate dentist may file a claim for unemployment benefits. 

Under normal circumstances, business owners are not be permitted to claim unemployment benefits because a closure of the business is treated as a voluntary closure.  Given that the COVID-19 pandemic is outside of the control of employers, Iowa Workforce Development has indicated it intends provide flexibility for such business owners to claim unemployment benefits.    

Under normal circumstances, employees receiving unemployment benefits must actively seek work with other employers.  For employees who are unemployed for COVID-19 related reasons and have properly indicated this on their claim forms, however, Iowa Workforce Development has indicated it will waive the requirement to search for a new job at this time.  

The choice of which employees to lay off is within the discretion of the employer.  An employer can choose to lay off either some or all of its employees, but should be cautious to avoid making employment decisions based on protected classes (age, gender, perceived disability, etc.).  For example, a dental practice should not mandate only older employees be laid off simply because they may fall within an at-risk group for COVID-19.  

Employees should file as soon as they are laid off by going online to https://www.iowaworkforcedevelopment.gov/ and clicking on “Apply for Unemployment.” 

Assuming the employer does not want to terminate employment, but still considers the absence a temporary layoff, the question then becomes how should the employer handle health care coverage for any period of time after that date.   The answer to that question will generally depend on the language in the health plan, and whether the particular layoff/absence constitutes a reduction in hours, termination, or other qualifying event under COBRA. If the employee is no longer eligible for coverage under the health plan, the employer may choose to cover the cost of the employee’s COBRA coverage. Note that different rules apply to smaller employers not covered by COBRA. As with all of this guidance, pending legislation and continually evolving circumstances may change this answer.  It is recommended that dental practices contact their health insurance broker with questions regarding their specific health plan.

An employee must have worked and earned a certain amount of wages in work covered by unemployment insurance over the last 15-18 months.