unemployment compensation what employers need to know
TRANSCRIPT
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.