If we decide to lay off employees or shorten the school year, are affected employees eligible for unemployment insurance benefits?
A. Yes. If you lay off an employee so that he or she no longer has a job with the district, or shorten the school year by more than a week, affected employees may be eligible for unemployment benefits. Under ordinary circumstances, school employees released for summer break are not considered unemployed and may not apply for benefits. According to Oregon law (ORS 657.221), you do not have to pay benefits to employees during an established and customary vacation period or holiday recess. Laying off employees or shortening the school year are not established and customary events, however, and employees affected by these changes may apply for benefits. It’s important to note that everyone who applies for unemployment is subject to a one-week waiting period. If you shorten the school year by a week or less, affected employees will not be eligible for unemployment.
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