unemployment compensation what employers need to know

UNEMPLOYMENT COMPENSATION

WHAT EMPLOYERS NEED TO KNOW

ORIGIN OF THE UI PROGRAM

CREATED IN 1935 AS PART OF SOCIAL SECURITY ACT

PURPOSE OF THE UI PROGRAM

PROVIDE BENEFITS TO THE REGULARLY EMPLOYED MEMBERS

OF THE LABOR FORCE

WHO BECOME UNEMPLOYED THROUGH NO FAULT OF THEIR

OWN.

FEDERAL-STATE RELATIONSHIP

SOCIAL SECURITY ACT OF 1935 AND

FEDERAL UNEMPLOYMENT TAX ACT (FUTA) ESTABLISH:

UI COVERAGE REQUIREMENTS BENEFIT ELIGIBILITY REQUIREMENTS FEDERAL TAXABLE WAGE BASE TAX RATE STATE ADMINISTRATIVE REQUIREMENTS

STATES’ RESPONSIBILITY

DESIGN & ADMINISTER OWN UI PROGRAM WITHIN FRAMEWORK

OF FEDERAL LAW.

FUNDING THE UI PROGRAM

FUTA-PAID BY EMPLOYER TO FEDERAL GOV FOR ADMINISTRATION OF FEDERAL PROGRAM & STATE PROGRAM-OPERATING COSTS- UI, JS, VETS, LMI

SUTA-PAID BY EMPLOYER TO STATE GOV TO PAY INDIVIDUAL CLAIMANT UI BENEFITS.

UI PROGRAM GOALS MAINTAIN CONSUMER PURCHASING POWER STABILIZE THE ECONOMY PREVENT DISPERSAL OF TRAINED LABOR

FORCE PREVENT THE SACRIFICE OF SKILLS PREVENT SPREAD OF UNEMPLOYMENT UPHOLD LABOR STANDARDS FOSTER IMPROVED MORALE AMONG

UNEMPLOYED WORKERS.

EARNINGS REQUIREMENT EARNINGS OF $2700 DURING TWO

QUARTERS OF BASE PERIOD– BASE PERIOD:

FIRST FOUR OF THE LAST FIVE COMPLETED CALENDAR QUARTERS.

ALTERNATE BASE PERIOD: LAST FOUR COMPLETED CALENDAR QUARTERS.

– MIN $54 FOR 12 WEEKS– MAX $378 FOR 26 WEEKS ($18,900.01

EARNINGS DURING TWO QUARTERS OF BP)

MAXIMUM BENEFIT AMOUNT(MBA)

$648-12 WEEKS DURATION $9828-26 WEEKS DURATION CLAIM IS GOOD FOR 12 MONTHS MAY CLAIM AT ANY TIME DURING

12 MONTH PERIOD IF MBA NOT EXHAUSTED.

ELIGIBILITY CRITERIA PER VIRGINIA LAW

UNEMPLOYED THROUGH NO FAULT OF WORKER

ABLE & AVAILABLE FOR WORK ACTIVELY SEEKING SUITABLE WORK MAKING ACTIVE JOB SEARCH EACH

WEEK BENEFITS CLAIMED WILLING TO ACCEPT SUITABLE WORK

WHEN OFFERED

WHO’S ON FIRSTCLAIMANT DISCHARGED(FIRED):

BURDEN ON EMPLOYER TO PROVE FIRED FOR MISCONDUCT.

CLAIMANT QUIT EMPLOYER MUST SHOW THAT

CLAIMANT NOT FORCED TO QUIT, THEN:

CLAIMANT MUST SHOW GOOD CAUSE.

CLAIMS PROCESS NOTICE OF POTENTIAL LIABILITY TO

EMPLOYER WAGE AND SEPARATION REPORT TO

EMPLOYER SEPARATION REASON INDICATED BY

CLAIMANT

CLAIMS PROCESS (CON’T) WAGE & SPEARATION REPORT MAILED TO ADDRESS ON FILE. RETURN BY DATE INDICATED ON FORM. YOU PROVIDE NAME & PHONE NUMBER OF

PERSON TO BE CONTACTED FOR ADDITIONAL INFORMATION. FIRST HAND KNOWLEDGE BEST. DEPUTY WILL CONTACT THAT PERSON

ANSWER QUESTIONS ON BACK OF FORM WITH FACTS “WHO, WHAT WHEN, WHERE, HOW”.

ATTACH REVELANT POLICY, ACKNOWLEDGMENT OF POLICY,WARNINGS, WITNESS STATEMENTS, ETC.

WAGE & SEPARATION REPORT

THIS IS A LEGAL DOCUMENT

THE CLAIMANT HAS A RIGHT TO KNOW THE INFORMATION YOU PROVIDE.

DON’T PUT ANYTHING ON THIS REPORT THAT YOU WOULD NOT SAY TO THE

CLAIMANT’S FACE, OR THAT YOU WOULD NOT WANT IN A COURT OF LAW.

WHAT TO DO WHEN THE PHONE RINGS

YOU OR THE DESIGNATED REPRESENTATIVE BE AVAILABLE!

ANSWER THE DEPUTY’S QUESTIONS FACTAULLY, AND BRIEFLY.

DON’T DIGRESS ON IRRELEVANT MATTERS.

DON’T DENIGRATE THE CLAIMANT. SPEAK IN A NEUTRAL, NON-

JUDGMENTAL TONE.

WHAT TO DO WHEN PHONE RINGS (CON’T)

PROVIDE ALL RELEVANT DOCUMENTATION IF NOT ALREADY PROVIDED.

MAKE CERTAIN WITNESS(ES) WITH FIRST-HAND KNOWLEDGE OF EVENTS TESTIFY.

WHEN THE HEARING IS OVER

DEPUTY’S WRITTEN DETERMINATION

WILL BE BASED ON FACTS PRESENTED BY EACH PARTY CONSISTENT WITH APPLICATION OF UI LAW.

WHAT IF I DON’T AGREE WITH THE DECISION?

APPEAL RIGHTS INJURED PARTY HAS 30 DAYS FROM

DATE DECISION MAILED TO FILE APPEAL.

EITHER PARTY CAN FILE APPEAL ON LINE, IN WRITING, OR BY FAX.

IF CLAIMANT QUALIFIED, WILL CONTINUE TO DRAW BENEFITS PENDING OUTCOME OF APPEAL.

MISCONDUCT-WHAT YOU NEED TO KNOW

VIRGINIA STATUTE

Section 60.2-618(2) of the Code of Virginia provides a disqualification for UI if a claimant was discharged for misconduct connected with work

Misconduct statuteFour Amendments to Statute:

Confirmed positive drug test result False statement of material nature on job

application regarding criminal convictions Violation of a regulation or standard

imposed by Commonwealth that could result in employer being sanctioned

Chronic absenteeism or tardiness

MISCONDUCT DEFINED DELIBERATE VIOLATION OF

REASONABLE COMPANY RULE, OR ACTS OR OMISSIONS THAT, BY

THEIR NATURE OR RECURRENCE, SHOWED A WILLFUL DISREGARD OF EMPLOYER’S INTERESTS & EMPLOYEE’S DUTIES AND OBLIGATIONS TO EMPLOYER.

MITIGATING CIRCUMSTANCES

Employee may avoid a disqualification if there was a showing of mitigating circumstances.

Generally, these will be circumstances that tend to show that the employee’s actions were not deliberate or willful

BURDEN OF PROOF The burden of proof is on the employer

to show misconduct by a preponderance of evidence.

Once the employer has proven misconduct, the burden shifts to the claimant to prove mitigating circumstances.

Examples of Acts that can Constitute Misconduct

Excessive absenteeism or tardiness without proper notice or adequate justification.

Insubordination. Fighting on the job. Falsification of job application or

company records. Willful destruction of company property

EXAMPLES OF WHAT ISN’T MISCONDUCT

Poor job performance due to inability or incapacity.

Single act of simple negligence resulting in damage to company property.

Poor attendance due to illness where company has been properly notified.

Self-defense from an unprovoked attack.

WHAT IS MISCONDUCT IN CONNECTION WITH WORK?

Claimant may be disqualified for misconduct only if it is in connection with work.

Not limited to act/omissions within the scope of employment.

The test is whether there is a reasonable link between the act of misconduct and the claimant’s job.

Examples of Off Duty Acts that are Connected with Work

Loss of driver’s license for DUI occurring off duty, but job requires valid driver’s license.

Loss of security clearance due to conviction for off-duty criminal act connected with work.

Reckless operation of a rental car while off duty where employer paid for the rental vehicle.

Preparing for a Misconduct Case

Review company rules and policies to ensure they are clear, understandable and known to all employees.

Ensure managers & supervisors know the rules and obey and consistently enforce them.

Require adequate documentation of rule violations & disciplinary action taken.

Preparing for the case(con’t)

Make sure you can explain the business interest a rule is designed to protect.

This is self-evident for a number of rules (e.g. insubordination, attendance, fighting on the job, etc).

Some rules are unique to a particular business/trade, so be prepared to explain why such a rule is important

WHO PAYS FOR BENEFITS LAST 30 DAY OR 240 HOUR

EMPLOYER FROM WHOM CLAIMANT IS SEPARATED IS LIABLE.

ANY REIMBURSIBLE EMPLOYER IN BASE PERIOD ASSESSED PERCENTAGE OF CHARGE.

EMPLOYER CHARGESCONTRIBUTORY

QUARTERLY CHARGE STATEMENT, BY NAME & AMOUNT.

EXPERIENCE RATING DETERMINED AT BEGINNING OF YEAR.

PRE-PRINTED QUARTERLY FILING PACKAGE MAILED 6 WEEKS BEFORE PYMT DUE.

EMPLOYER CHARGES

REIMBURSIBLE DETAILED BILLING STATEMENT

SHOWING ALL CHARGES FOR QUARTER.

PAYMENT COUPON INCLUDED. MUST BE PAID W/I 30 DAYS FROM

MAIL DATE.

The Keys to Success Implement & follow good hiring practices Adopt clear rules that are known to all

employees. Train managers & supervisors to consistently

obey and enforce the rules. Insure all employees know and follow rules

and policies. Document violations and discipline according

to your policy. Always participate in the hearing at all levels

COST MANAGEMENT TIPS

EVALUATE NEW EMPLOYEES BEFORE 30 WORK DAYS OR 240 HOURS

DEVELOP WRITTEN POLICY MANUAL REQUIRE EMPLOYEES’ WRITTEN

ACKNOWLEDGE & UNDERSTANDING OF POLICY.

FOLLOW POLICY AND DOCUMENT DISCIPLINARY ACTIONS.

RETURN WAGE & SEPARATION REPORT ON TIME.

PARTICIPATE IN FACT-FINDING HEARING.

COST MANAGAMENT TIPS (CON’T)

SUPPLY FIRST HAND TESTIMONY AND WRITTEN DOCUMENTATION.

FILE APPEAL IF YOU DISAGREE WITH OUTCOME.

REVIEW ALL BENEFIT CHARGES FOR ACCURACY.

CONTACT US FOR CLARIFICATION OR CORRECTION.