Vacation Shutdowns No Longer Avoid Unemployment

Document created by 1002070 on Dec 9, 2014Last modified by 1002070 on Mar 10, 2017
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Under prior North Carolina unemployment legislation, employers could declare a two week unpaid vacation shutdown during which employees would not be eligible for unemployment benefits.  Many manufacturing employers would take advantage of this opportunity to shut down for the holidays and also use the time for equipment maintenance during the shutdown, although the option was available to all businesses. This option is no longer available.


If you have a shutdown period without pay, employees would have a one week waiting period during which they would not be eligible for benefits.  If work is unavailable beyond the waiting week, they would be eligible for benefits if they meet the monetary eligibility requirements for the base period.


If you have questions about this topic, please contact our Advice and Resolution team at 919-878-9222 or 336-668-7746.