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Question:

If we close a location but offer work to the employees at another location, does that automatically disqualify the employees from unemployment?

Answer:

The short answer to this is no.  The states will look at whether or not the job offer presents a hardship to the employee.  When an employee is disqualified from receiving benefits in this situation, it is because the new job will not create an unnecessary hardship.  Keep in mind that when a person files for unemployment, they must be not only able and available but also actively seeking work.  In these types of cases, the burden is on the claimant to show “good cause” for refusing the job offer at the other location.  Some good causes for refusing the job at the new location could be a change of job duties, change in work schedule, change in benefits, or pay.  Another argument could be the distance from the old work location to the new one.  Lastly, if the employees rely on public transportation to get back and forth to work and public transportation is not available at the new location OR the time would increase significantly due to public transportation, this could be considered good cause as well.

These cases can be complicated so you should consult with your Corporate Cost Control team for direction and assistance!


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