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Governor Signs Executive Order Assisting Employers on Unemployment Rates

January 5, 2021

On Tuesday, Dec. 29, Governor Hutchinson issued Executive Order (EO 20-54) which grants relief to employers whose unemployment rates might have been adversely affected by the economic effects of COVID-19.

In this Executive Order, Governor Hutchinson provided that in determining an employer's unemployment contribution rate beginning January 1, 2021, the chargeable benefits from April 1, 2020 through June 30, 2020 would not be included. This Executive Order also provides assistance for reimbursing employers (many nonprofits) and relieves them from reimbursing any benefits paid between April 1, 2020 through June 30, 2020.

As a result of the Executive Order employers' unemployment contribution rates will not be adversely affected for 2021 by unemployment that occurred during the second quarter of 2020. We expect that the Division of Workforce Services will issue further guidance as a follow-up to this Executive Order. The long-term effects of this Executive Order may be affected by action of the legislature which begins its session next week.

Disclaimer: The information included here is provided for general informational purposes only and should not be a substitute for legal advice nor is it intended to be a substitute for legal counsel. For more information or if you have further questions, please contact one of our Attorneys.

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