Articles Posted in Unemployment

Summary: This article briefly looks at the trend of the aging workforce—sensationalized or real? It also touches on some of the positive and negative impacts of that potential trend. 

In the last decade or so, the media has begun talking about the so-calledgraying” of the American workforce—the idea that people are working later in life and retiring later, if at all.  Sometimes this is talked about in almost apocalyptic terms when it comes to productivity and benefits.  First, this article touches on the actual extent to which that is true.  Second, because a lot of coverage of this phenomenon seems to be from a “macro” (i.e., employer’s) perspective, this article briefly explores some of the implications of that trend for the workers’ themselves.

First of all, this is a real trend: the U.S. Bureau of Labor Statistics estimates that the share of the workforce age 75 or over will almost double by 2030.  This is in large part driven by the Baby Boomer generation.  However, in absolute terms this “problem” may be bit overblown by the media: those same projections say the share of the workforce in the 55-74 age bracket will actually decrease by 2030, and even the 75+ age bracket will be less than 12 percent of the workforce by 2030.  In addition, while the average age of retirement is going up, it is doing so slowly, creeping up by approximately 3 years since the early 1990s.  Life expectancy overall has been increasing, though not during the pandemic years; it remains to be seen if the upward trend in that resumes.  Though not some immediate existential threat, this aging of the population likely will put increasing pressure on our social safety nets.          

For employers and employees alike it is becoming apparent that there is a trend of employees leaving their workplaces. In Texas, the at-will doctrine allows an employee to leave for any reason or no reason, but sometimes resignations can be a bit more complicated. For employees it is complicated because resignations can be and should be used strategically rather than a simple decision to leave a job. To use a resignation strategically, there are a few things to consider and think about before pulling the plug. 

First and foremost, leaving a job can evoke questions about eligibility for unemployment benefits. In Texas, resignations, except for narrow exceptions related to “good cause connected with the work,” can be fatal to an application for unemployment benefits. While every case is different, resignations likely spell the end for unemployment benefit eligibility. Yet, it ultimately comes down to the Texas Workforce Commission’s decision. Therefore, if unemployment benefits are part of the financial planning underpinning a resignation, it is important to keep this in mind.

If unemployment benefits are not a concern or can be overlooked, then resignation becomes a good option to leave an employer on amicable terms. Outside of a contractual obligation, there is generally no notice period requirement on resigning. Nonetheless, there are practical steps to take before submitting a notice of resignation to protect your best interest. By way of example, medical procedures that can be done while health insurance coverage is still fully paid by your employer, figuring out finances in case you cannot find a different job, how a resignation might look at your next employer, and finally, contractual obligations. The contractual obligations can be tricky and are typically governed by an employment contract that an employee signed at the beginning of employment. Contracts that govern resignations or leaving a job without cause sometimes have requirements like a notice period, a method of giving that notice like certified mail to a specific address, or even set out specific information that needs to be in a notice. Some contracts even have promises of severance. 

In an unsurprising turn of events, the State of Texas is ending its participation in the federal pandemic unemployment benefit programs early. Jobless Texans will lose access to federal unemployment aid, including a $300 per week supplemental benefit effective June 26, 2021, three months prior to the federal expiration of the programs. More than a million Texans will be impacted when the State stops receiving unemployment benefits under the American Rescue Plan Act (ARPA). The final benefit week that the Texas Workforce Commission (TWC) will pay federal pandemic unemployment benefits under the ARPA is the benefit week ending June 26, 2021.

This decision will end the Pandemic Unemployment Assistance (PUA) program for those who traditionally do not qualify for regular state benefits, such as self-employed and independent contractors, or exhausted all other benefits; Pandemic Emergency Unemployment Compensation Program (PEUC) that extends regular state benefits; and Federal Pandemic Unemployment Compensation Program (FPUC), which provides an additional $300 weekly benefit payment. These programs were created with the CARES Act and were recently extended under the ARPA. However, the caveat is they require the governor’s approval. In other words, if the governor of your state rejects these benefits, you are unable to access them. To no surprise, following pressure from business groups, Governor Greg Abbott declared that Texas will no longer receive any federal pandemic-related unemployment benefits effective June 26, 2021. 

Governor Abbot’s decision comes amid a trend of Republican governors announcing plans to cut benefits in order to encourage people to return to work. According to Governor Abbot, “The Texas economy is booming and employers are hiring in communities throughout the state.” Similarly, according to the TWC, the number of job openings in Texas is almost identical to the numbers of Texans who are receiving unemployment benefits. 

Section 9501 of the recently passed American Rescue Plan Act (“ARPA”) fully funds COBRA health insurance plan payments for qualifying individuals between the dates of April 1, 2021 and September 30, 2021. This benefit is funded by the employers who will then receive a tax credit to offset the cost of COBRA coverage. Notably, the benefit is not available to employees who voluntarily quit their job or who were terminated on the basis of “gross misconduct,” and the 18- and 36-month limit to coverage still apply. 

Before the world of COVID-19, nearly all employees who separated from their jobs had the option of electing to remain on their employee-sponsored health insurance by enrolling in a COBRA plan. I say “nearly all employee” because COBRA is only available to employee who worked for a company that employs 20 or more employees. However, Texas has passed its own version of COBRA known as “mini-COBRA,” which applies to businesses with fewer than 20 employees and only provides 9 months of coverage. 

Generally, employees are permitted to enroll in COBRA within 60 days from their employment separation. Once an employee enrolls in COBRA, the employee is usually permitted to remain on COBRA for 18 months, unless (1) the employee is only eligible for mini-COBRA, which would only permit the employee to remain on COBRA for 9 months or (2) the employee becomes eligible for Medicare while on COBRA, in which case the employee will transition from COBRA to Medicare while his or her family members are permitted to remain covered by COBRA for 36 months rather than just 18 months. 

On March 11, 2021, President Biden Signed the American Rescue Plan Act (“ARPA”) into law. The ARPA extends the unemployment benefits that were available under the March 2020 Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) and the December 2020 Consolidated Appropriations Act, (both of which were set to expire after March 14, 2021) through September 6, 2021. 

To reap the benefits of the ARPA, you must meet your state’s eligibility requirements. In the state of Texas, if COVID-19 is the only reason you cannot work, you are considered able to work according to the Texas Workforce Commission (“TWC”). Hence, in order to remain eligible for benefits, you must be able and available to work and search for work as instructed by the TWC. Unless you are exempt, the number of work search activities you must complete and report each week is determined by your county of residence. 

However, according to the TWC, each benefits case is evaluated on an individual basis. Because of the COVID-19 pandemic, the TWC has compiled a list of reasons benefits would be granted even if you refuse suitable work. Among those reasons are if you are 65 years or older, and/or have a medical condition, like heart disease, diabetes, cancer, or a weakened immune system, or at a higher risk for getting very sick from COVID-19, and/or if someone in your household is at high risk for contracting COVID-19. 

Most of the time, if an employee decides to talk to an employment attorney it is because they have been fired.  And even if reinstatement to the employee’s old job is a possibility, often when they were fired for an illegal reason they are understandably afraid of returning to the lion’s den to face retaliation.  But if you are an employee who was fired for an illegal reason and do not feel safe returning to that same employer (or your employer just refuses to take you back), it is critically important that you keep in mind your “duty to mitigate.”  This article explores some key points of that means, why it is important, and what you can do to fulfill that duty.

The point of any employment lawsuit is ultimately “restorative,” to put the employee in the same place they would have been but for the illegal actions of their employer.  If feasible, that includes reinstating them to the position they lost.  But reinstatement is not always feasible, and it alone does not always fully compensate an employee for what they lost.  So, one major thing that most employment lawsuits usually ask for is compensation for lost wages (“backpay”) through the time of trial.  However, courts will not allow an employee to artificially increase what they can get out of a lawsuit by tactically increasing what the employee has lost.  Instead, courts impose a “duty to mitigate,” which means a fired employee who is asking for backpay in a lawsuit must make reasonable efforts to find and keep comparable employment.

  Continue reading ›

Employees leaving a company can often wonder whether their former employer will insert itself into their future career. In particular, people can be worried about what former employers are allowed to say to jobs where they are applying.  “Can my old job sabotage my career?”  Texas has a patchwork of laws that apply to employment references that often differ dramatically from laws in other states.  The fact that companies can have their own reference policies only serves to confuse things more.  The purpose of this article to relieve some of that confusion when it comes to employment references in Texas.

Continue reading ›

Contact Information