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Under limited circumstances, if a claimant receives other payments, their UI benefits may be affected.
Vacation pay for a fixed layoff, such as closing for a week at Christmas, will affect UI benefits. If the employees have a definite date to return to work after the Christmas vacation, the vacation pay will be deducted from their weekly UI benefits. A fixed layoff occurs when an employer provides a date on which the affected employees must return to work.
If you fail to give notice of a mass layoff or plant closing, you may be required to pay employees 60 days’ wages as a penalty under the federal Worker Adjustment and Retraining Notification Act (WARN). For more information, see Mass Layoffs and Plant Closings.If a person receives payments due to their employer violating the WARN Act, these payments do not affect their eligibility for UI benefits.1
1. UI Code sec. 1265.1