COMMENTARY FROM COUNSEL

Beginning November 2, 2020, all Wisconsin employers must notify employees of the availability of unemployment insurance at the time of separation from employment. Additionally, Wisconsin’s Department of Workforce Development (DWD) has created posters with up-to-date information on the provision of unemployment insurance that must be displayed at every workplace. Now is the time to get up to speed so that you can ensure your agency is compliant when separations from employment occur— particularly in the current environment—and to be able to handle questions from clients.

On March 18, 2020, Congress passed the Families First Coronavirus Response Act (FFCRA). Among other provisions, the law provided $1 billion to the states for emergency unemployment insurance funds. However, FFCRA mandated that, in order to receive the funds, states must require employers to notify employees of the existence of unemployment compensation at the time of separation from employment.

Shortly thereafter, DWD began the process of adopting an emergency rule to create DWD 120.02. The rule, which becomes effective on November 2, requires each employer in Wisconsin to notify all employees of the availability of unemployment insurance at the time of separation from employment. This notification can come in a variety of forms, i.e., letter, email, text message, flyer, etc. While the exact text of the notification is not specified in the rule, DWD has provided suggested language, which can be found here: https://dwd.wisconsin.gov/dwd/publications/ ui/notice.htm. Importantly, the text of the rule does not define the term “separation.” However, the suggested language provided by DWD references both employment stopping and a reduction in hours. Therefore, employers should provide required notice to any employee that has been terminated, furloughed, laid-off, experienced a reduction in hours, or will otherwise see a significant change in their employment status.

Finally, state law already mandates employers display posters in suitable locations that describe available unemployment benefits for employees that experience a separation from employment. DWD has recently updated these posters and has produced them in three different languages: English, Spanish, and Hmong. You can find the updated poster at the link in the above paragraph.

Starting November 2, all Wisconsin employers will be required to provide notice to separated employees of the availability of unemployment insurance. While this notice can come via digital or paper copy, employers should use the suggested language found on DWD’s website. Work with legal counsel to ensure that your agencies are in compliance with this and all other workplace regulations.

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