The Arizona Department of Economic Security (DES) is providing the following information for individuals and employers about how a refusal to accept an offer of suitable work or a refusal to return to work may impact eligibility for unemployment benefits.
Under federal and state law, refusing a suitable offer of work or refusing to return to work when your employer calls you back typically makes you ineligible to receive unemployment benefits.
You may continue to be eligible for Pandemic Unemployment Assistance if you refuse an offer of suitable work or refuse to return to work due to one of these circumstances*:
Note: Claimants should bear in mind that many of the qualifying circumstances described are likely to be of short term duration. For example, an individual who has been diagnosed with COVID-19 may be able to return to their place of employment when they are cleared to do so by their medical provider. Additionally, individuals who refuse an offer of telework may no longer be eligible for PUA, even if one of the above circumstances applies.
When you return to work, you should stop filing your weekly certifications for unemployment.
I have been receiving unemployment benefits, but now I am returning to work. What should I do?
When you file your weekly certification, you will be asked if you have returned to full-time work. If you have returned to full-time work, you must answer “yes” to this question, and your claim will close. You may also simply stop filing weekly certifications, and DES will close your claim after two weeks. If you continue to file weekly certifications and receive benefits after you return to full-time work, you will be required to pay back any benefits for which you were not eligible.
If you are returning to part-time work, you may continue to file weekly certifications and report your earnings for each week. If you earn less than your weekly benefit amount, you may still be entitled to partial unemployment benefits.
What should I do if I am returning to work, but I will be working part-time or reduced hours?
Continue to file your weekly certifications and report any wages you earn. Remember, you must report wages for the week in which you earned them, not the week in which you are paid. Any wages you earn may affect your weekly benefit amount.
My employer has called me back to work. What happens if I refuse to return?
In general, an employee is disqualified from receiving further benefits if the employee refuses to return to work after receiving notice to do so from their employer. If your employer has called you back and you did not return to work, you must report that you have refused an offer to work when filing your weekly certification. You will have an opportunity to provide more information about your reason for not returning to work.
DES will determine continued eligibility for unemployment benefits on a case-by-case basis. You may continue to be eligible for benefits if you have good cause for not returning to work. Examples of good cause related to COVID-19 are set out above these FAQs in the section titled “Returning to Work,” including being diagnosed with COVID-19, caring for someone with COVID-19, or being advised by a medical provider to self-quarantine due to COVID-19.
What happens when I exhaust my 26 weeks of regular Unemployment Insurance benefits?
You may apply for an extension of benefits for up to 53 additional weeks through the Federal Pandemic Unemployment Compensation (FPUC) program.
I feel unsafe returning to work. Can I refuse to work?
If your employer is not able to offer you a worksite in compliance with local, state, or federal safety guidelines relating to COVID-19, or your job does not allow for a reasonable accommodation such as teleworking, you may have good cause for not returning to work and be eligible to continue receiving benefits.
Proof may be required to substantiate your good cause. A general concern related to COVID-19 does not constitute good cause to refuse an offer of suitable work.
My child's school is offering the option for full-time in person instruction, but I prefer that they continue receiving virtual instruction at home. Can I still refuse to return to work if I am their primary caregiver?
If a school provides students the option to attend in person full time, the school is considered open. If you choose for a student in your care to attend online remote instruction when they have the option to attend in person, you are not eligible for benefits and must return to work, unless you meet one of the other COVID-19 criteria.
My employer offered me the ability to telework. Can I refuse to accept the offer to telework and still receive benefits?
Generally, if you are offered telework with pay for the same number of hours as before and you do not accept the offer, you are not eligible for benefits.
Some exceptions apply. For instance, you may still be eligible for benefits if you refuse an offer to telework because:
I can make more money collecting unemployment benefits than I can returning to work. Can I refuse an offer to return to work, because I will earn less from working, and remain eligible for benefits?
No. Refusing to return to work solely on the basis that you will earn less than you can collect in unemployment benefits is not considered good cause when your employer has offered you your former employment back or you have been offered other suitable employment. A refusal to return to work solely on this basis is considered a fraudulent act in the State of Arizona. Therefore, you would not be eligible to receive benefits, and you may be prosecuted and/or subject to administrative or criminal penalties as a result.
What if I disagree with the decision that is made about my benefits?
If you have been receiving UI or PUA benefits, you will be mailed a Determination of Deputy explaining the eligibility decision. If you disagree with the decision, instructions on how to request a reconsideration or to appeal the decision will be found on the Determination document. In general, you have the right to request a reconsideration from the UI Program or appeal the determination if you disagree with the decision.
If you disagree with DES’ decision about your weekly benefit amount, you will have appeal rights, but you may first be asked to verify the wages reported by employers attached to your Social Security number, and DES may reconsider its original decision based on new information. Please be aware that DES does not have the ability or authority to award amounts over the amounts established by law ($320 per week) unless the state or federal laws change.
My employees are returning to work. What do I need to do regarding unemployment claims?
You do not need to report to DES that your employees are returning to work. Your employees will need to answer questions regarding whether they worked or earned money when filing weekly claims, and the employee should follow the guidance provided under Question #1 and contact DES if they have any questions.
What if I have an employee who has refused to return to work or who quit when I called them back to work?
Employers may report to DES that an individual refused an offer of work or that employees have not returned to work when work is available. If an individual refuses to work, employers can notify DES through its fraud referral portal, which has a “Failure to Accept Suitable Work for Employers” section to complete. DES will review the information to determine the employee's eligibility for unemployment benefits.
I have an employee who does not want to return to work because they feel unsafe. Can they quit and receive unemployment benefits?
Eligibility for unemployment benefits is determined on a case-by-case basis. Typically, an employee who quits without good cause is not eligible for benefits.
An employee may have good cause to refuse to work, and may be eligible to receive benefits, if the worksite is not in compliance with local, state, or national health and safety standards directly related to COVID-19. This includes but is not limited to, those related to facial mask wearing, physical distancing measures, or the provision of personal protective equipment consistent with public health guidelines.
I have made some changes in the way we do business due to the current environment. Can an employee refuse to return to work due to the changes and get benefits?
An employee may be eligible to receive unemployment benefits if there is a substantial change in the contract of hire (including wage level, type of work, and required skills) and they quit their position.
For example, if you significantly reduce their pay, permanently change their assigned shift without their agreement, move them to a new facility with a substantially longer commute, or make other major modifications to the type of work for which you hired them, this would constitute a substantial change in the contract of hire.
However, minor changes, such as moving them to a new line, requiring only one or two extra hours of work a day, or changing their work location in the same facility, likely would not constitute a change in the contract of hire, and they would not be eligible for unemployment benefits.
The definition of “substantial” is situation-specific and is determined on a case-by-case basis.
What if I disagree with the decision made about an employee’s eligibility for benefits?
The employer and employee will be notified about the determination of eligibility for regular UI benefits. Either party has the right to appeal the determination if they were adversely affected by the decision.
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Pursuant to Title VI of the Civil Rights Act of 1964, the Americans with Disabilities Act (ADA) and other nondiscrimination laws and authorities, ADES does not discriminate on the basis of race, color, national origin, sex, age, or disability. Persons that require a reasonable modification based on language or disability should submit a request as early as possible to ensure the State has an opportunity to address the modification. The process for requesting a reasonable modification can be found at Equal Opportunity and Reasonable Modification