According to FindLaw, “If an employee is laid off by an employer, or working hours are significantly decreased, the worker will receive unemployment benefits as long as he or she has enough employment tenure to be eligible under the state’s program.

In some special circumstances, like a pandemic, the federal government may allow the states to extend the eligibility of employees to qualify for benefits when the employee is temporarily laid off. This happens when the business is forced to shut down for a specified period of time.”

How much does an Unemployment Claim Cost an Employer

On average the, “amount paid out on an unemployment claim is $4200 but can cost up to $12,000 or even more.”

The true cost of unemployment claims is an increase in tax rates and each claim can affect three years of UI tax rates, according to Unemployment Insurance Services.