Switching employees from permanent to temp

Is it legal for a company in Alaska to
switch their employees from a status of
permanent no yearly contract renewal
to temporary for the purpose of not
having to pay unemployment when they
lay employees off?

Asked on June 9, 2017 under Employment Labor Law, Alaska

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

It is legal for a company to change employees from a "permanent" status to "temporary" but that doesn't mean that the employees will not be eligible for unemployment. Temporary employees do in fact receive unemployment, if they otherwise meet the criteria (e.g. worked enough) for it. It doesn't matter what the employer calls the job (temporary or permanent)--that doesn't deny employees unemployment benefits.


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