The ABCs of Unemployment Compensation · You followed the company policy and separated that...
Transcript of The ABCs of Unemployment Compensation · You followed the company policy and separated that...
The ABCs of Unemployment Compensation
The ABCs of Unemployment Compensation
• The Unemployment Compensation System in all States is 100% employer funded.
• Your Unemployment Costs are driven by the Benefits paid to claimants and charged to your account.
• UC Taxes are a variable tax based on Claims Experience. High Benefits Pay out = High Tax Rate
• Controlling Benefits saves your Company money.
How Does Your Company Pay Your UC Costs?
CONTRIBUTORY EMPLOYER
• “For Profit” company• Pays tax on a percentage of wages paid to employees
REIMBURSABLE EMPLOYER• “Non Profit” company• Pays dollar for dollar what is paid to claimant
Who Pays the Claim?
Base Period• A Base Period = first 4, of the
last 5 completed quarters, immediately proceeding the filing of an unemployment claim
• Determines monetary eligibility• Calculates unemployment
benefits, including Weekly Benefit Amount & Duration
• Determines chargeable employers
Benefit Year• Ability to collect benefits based
on states duration of benefits (varies state to state)
• Benefits collected result in charges to employer’s tax account
Base Period LagQuarter
Claim Filed Benefit Year
1st
QTR2018
2nd
QTR2018
3rd
QTR2018
4th
QTR2018
1st
QTR2019
2nd
QTR2019
52 weeks from the date the claim is filed
Base Period Employer Base Period Employer Base Period & Last Employer
Winning Strategies for Employers
You followed the company policy and separated that employee.
So why were they able to file and collect Unemployment Compensation against your company???
Small details can make a huge difference in the outcome of a UC claim filing. Here are some “easy fixes” and best practices that you can use now to win UC claims and save your company money.
In Order to Win
In order to win a UC claim for an employee that has been fired, you must be able to prove “Willful Misconduct.”
An act of wanton or willful disregard of the employer’s interest.
A deliberate violation of the employer’s rules.
A disregard of the standards of behavior which the employer has a right to expect of an employee.
Negligence indicating an intentional disregard of the employer’s interest or of the employee’s duties and obligations to the employer.
What is Willful Misconduct?
Proving Misconduct
The employer must be able to prove that:
THE EMPLOYEE WAS AWARE OF THE RULE
• Discussed at the time of hire; or written on initial employment application
• Outlined in company handbook with receipt signed by employee
• Through receipt of Written Disciplinary Warnings signed by the employee
Proving Misconduct
The employer must be able to prove that:
THE EMPLOYEE KNEW HIS JOB WAS IN JEOPARDY
• Verbally stated to employee in counseling session with a witness present
• Outlined in company handbook
• Through written Disciplinary Warnings that include, “Future violation of this or any other company policy may lead to disciplinary action up to and including termination.”
Proving Misconduct
The employer must be able to prove that:
THE EMPLOYEE HAD CONTROL OVER THE FINAL INCIDENT
• It is necessary to show that the claimant chose to engage in the behavior that caused them to lose their job
• “Accidents” are not considered willful misconduct as they are not intentional
• The final incident rises to the level of willful misconduct
The Top Ten Reasons UC Claims Are Lost
Firing and Re-Hiring of Problem Employees
Outdated/Inadequate Policies
Although the Claimant Violated Your Rule, They Can Prove Good Cause for Violating the Rule
Not Applying the Company Policy in a Consistent Manner
The Top Ten Reasons UC Claims Are Lost
Failure to Perform a Thorough Investigation of the Final Incident Prior to Separation. Hint: Always Get the Claimant’s Side of the Story.
Remoteness of Disciplinary Actions from Violation Incident; Allowing Employee to Work after Knowing that a Terminable Offense has Occurred.
Listing Multiple Reasons for a Termination
No Documentation to Support the Termination; Warnings Not Signed by the Employee
Untimely Responses/Late Appeals
The #1 Reason UC Claims are Lost
Using ANY of the “Words That Lose Claims”
In UC Law, there are words that pay claims and words that prevent claims. Often, a claim is lost because the employer failed to use the proper terminology when describing the incidents leading to a discharge.
Words That Lose Claims
If you use the following subjective phrases that the state considers to be an opinion and not factual, the employee will most likely qualify for UC benefits:
Poor Performance Bad Attitude Personality Conflict
Did Not Get Along with Coworkers
Not a Team Player Not Meeting Department Goals
Unable to Perform to Company Standards
Words that Win Claims
If you use the following objective, factual phrases, the employee will most likely be disqualified for UC benefits:
InsubordinationFailure to Follow
Supervisor’s Instructions
Violation of Company Policy
Failure to Follow Proper Procedures
Excessive Unexcused Lateness
Excessive Unexcused
Absenteeism
Unauthorized Possession of
Company, Client or Coworker Property
Questions??