If an employee's hours are reduced, they may still qualify for partial unemployment benefits through the Utah Department of Workforce Services (DWS). Partial benefits are designed to help workers who lose some, but not all, of their income. To qualify, the employee must meet the usual unemployment eligibility rules - such as having earned enough wages in their base period, being able and available to work full-time, and filing weekly claims with DWS.
When someone works reduced hours, they can continue filing their weekly claim and report all gross earnings for that week. If the amount they earn is less than their weekly benefit amount, DWS may pay them a partial benefit to help make up the difference.
Employers should be aware that cutting back an employee's hours may make that individual eligible for partial unemployment benefits. In some cases, the employee can receive both wages and a portion of unemployment assistance. Before reducing hours, businesses may want to consider the potential impact on their unemployment insurance account and discuss options with HR or legal counsel.
