On March 19, 2020, North Carolina Governor Roy Cooper issued Executive Order No. 118 in response to the COVID-19 coronavirus pandemic. The Executive Order covers two main components: (1) it restricts the operations of restaurants and bars; and (2) expands the availability of unemployment insurance benefits to employees adversely affected by COVID-19.
Business Restrictions
The first section of the Order limits the sale of food and beverages to carry-out, drive-through, and delivery only. This limitation applies to all permitted food establishments to include restaurants, bars, food halls, dining halls, food courts, and members-only clubs.
Unemployment Benefits
Sections 2 and 3 of the Order significantly amend the current unemployment insurance benefit provisions. This Order directs the Department of Commerce to ensure that emplyees who, because of COVID-19, are separated from employment, have reduced hours, or are prevented from working due to a medical condition or because of communicable disease measures caused by COVID-19, are eligible to receive the maximum extent of unemployment benefits permitted by federal law.
The Order also directs the Department of Commerce to “interpret flexibly or waive” the following:
- The one-week waiting period for benefits;
- The requirement that applicants be able and available to work;
- The active job search requirements; and
- The lack of work requirements.
In addition, the Order postpones all mandatory in-person contact pertaining to claims for unemployment benefits and permits both applications and weekly certifications to be filed remotely. Finally, the Order ensures that employers’ accounts will not be charged for benefits paid for COVID-19 related claims.
These changes to North Carolina’s unemployment laws shall be retroactive to March 10, 2020, through the duration of the State of Emergency.