Here’s What You Need to Know If You Get Laid off in Maryland During Coronavirus Pandemic

Scott Dance

More than 5,000 Marylanders filed for unemployment in one day last week, nearly five times the norm – and so many that some users were briefly unable to access an online claims portal.

State labor officials have since fixed the website issues, they said, but are preparing for an extended surge of claims as coronavirus-related closures continue for weeks or months.

State labor officials are working to make the unemployment claims process easier for workers affected by mass layoffs, and to help companies keep their unemployment insurance premium costs down, said Dayne Freeman, assistant labor secretary for unemployment insurance.

Maryland had about $1.3 billion in the fund from which it pays unemployment benefits as of the beginning of the year, according to federal data. At that level, the state is at risk of needing to borrow federal money to meet its unemployment benefit obligations, ranking 37th among states on a measure of fund solvency, according to a U.S. Department of Labor report.

Whether that becomes necessary will depend on how long coronavirus-related business closures last.

Gov. Larry Hogan last week ordered gyms and movie theaters to close indefinitely, and he has limited restaurants and bars to carry out or delivery only. About 259,000 people work in the state’s restaurant industry alone, about 9% of the state workforce, according to the Restaurant Association of Maryland.

And on Monday, as he ordered all non-essential businesses closed, state labor and commerce officials announced stepped-up plans to assist small-business owners and their employees. That included a $175 million in a business relief program to help businesses retain and continue to pay employees, and a loosening of normal rules for recipients of unemployment benefits.

Here’s what you need to know if you are among those out of work.

Who Can File for Unemployment?

The system is for people who have lost jobs through no fault of their own. Amid the coronavirus pandemic, that includes those laid off because of loss of business or production tied to the outbreak.

It does not include people who can’t work because they are sick. However, some people who have been ordered by a doctor or public health official to isolate themselves may be eligible for unemployment benefits, according to the state labor department.

Legislation the General Assembly approved last week also makes people eligible for benefits if they have to leave their jobs to avoid risk of coronavirus exposure or to care for an infected family member. Hogan signed the measure into law Thursday, and it took effect immediately.

And state labor Secretary Tiffany Robinson said Monday that people can file for unemployment if their workplace is closed because of social distancing orders, even if they haven’t been formally laid off from their jobs.

Both part-time and full-time workers can be eligible for unemployment benefits.

How Do You Claim Unemployment Benefits?

Unemployment claims can be submitted online through the state labor department website or by phone. Claimants are asked to provide basic information including name, Social Security number, address and telephone number; and employment information, including employer contact information and the reason for leaving each job held within the past 18 months.

Freeman said the state is working with employers who are making mass layoffs to smooth the unemployment claims process for those workers, collecting lists of names directly from the employers.

To continue receiving the benefits, recipients must report any income and, typically, they must also document that they are regularly searching for new work. But Robinson said Monday the state is waiving the work search requirement during the coronavirus pandemic.

How Much Money Can You Receive?

For most recipients, unemployment benefits are calculated using their earnings over the first four of the last five calendar quarters – so, for anyone filing this month, income earned in the year that ended Sept. 30. For those filing in April, May or June, benefits will be based on calendar year 2019 earnings.

People generally receive about half of gross weekly wages, up to a maximum of $430 a week. Anyone eligible for unemployment insurance in Maryland can receive at least $50 a week.

Benefits can be paid out for as long as 26 weeks.

What Do Unemployment Claims Mean for Employers?

Companies pay unemployment insurance taxes for each employee, and the amount depends on how often they have laid off workers over the past three years. For most employers, it’s $25.50 per employee, but rates can go as high as $637.50.

Any unemployment claims tied to layoffs can increase those taxes. But the rates are set at the beginning of each calendar year, so employers would not see any changes until 2021 at the earliest.

State labor officials are in discussions with their federal counterparts about how to potentially limit the impact of coronavirus-related layoffs on future tax rates.