UNEMPLOYMENT COMPENSATION

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UNEMPLOYMENT COMPENSATION

• WHAT EMPLOYERS NEED TO KNOW

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ORIGIN OF THE UI PROGRAM

• CREATED IN 1935 AS PART OF SOCIAL SECURITY ACT

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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.

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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

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STATES RESPONSIBILITY

• DESIGN ADMINISTER OWN UI PROGRAM WITHIN
  FRAMEWORK OF FEDERAL LAW.

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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.

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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.

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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)

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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.

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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

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WHOS ON FIRST

• CLAIMANT 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.

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CLAIMS PROCESS

• NOTICE OF POTENTIAL LIABILITY TO EMPLOYER
• WAGE AND SEPARATION REPORT TO EMPLOYER
• SEPARATION REASON INDICATED BY CLAIMANT

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CLAIMS PROCESS (CONT)

• 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.

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WAGE SEPARATION REPORT

• THIS IS A LEGAL DOCUMENT
• THE CLAIMANT HAS A RIGHT TO KNOW THE INFORMATION
  YOU PROVIDE. DONT PUT ANYTHING ON THIS REPORT
  THAT YOU WOULD NOT SAY TO THE CLAIMANTS FACE, OR
  THAT YOU WOULD NOT WANT IN A COURT OF LAW.

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WHAT TO DO WHEN THE PHONE RINGS

• YOU OR THE DESIGNATED REPRESENTATIVE BE
  AVAILABLE!
• ANSWER THE DEPUTYS QUESTIONS FACTAULLY, AND
  BRIEFLY.
• DONT DIGRESS ON IRRELEVANT MATTERS.
• DONT DENIGRATE THE CLAIMANT.
• SPEAK IN A NEUTRAL, NON-JUDGMENTAL TONE.

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WHAT TO DO WHEN PHONE RINGS (CONT)

• PROVIDE ALL RELEVANT DOCUMENTATION IF NOT ALREADY
  PROVIDED.
• MAKE CERTAIN WITNESS(ES) WITH FIRST-HAND
  KNOWLEDGE OF EVENTS TESTIFY.

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WHEN THE HEARING IS OVER

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

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WHAT IF I DONT 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.

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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

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Misconduct statute

• Four 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

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MISCONDUCT DEFINED

• DELIBERATE VIOLATION OF REASONABLE COMPANY RULE,
  OR
• ACTS OR OMISSIONS THAT, BY THEIR NATURE OR
  RECURRENCE, SHOWED A WILLFUL DISREGARD OF
  EMPLOYERS INTERESTS EMPLOYEES DUTIES AND
  OBLIGATIONS TO EMPLOYER.

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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 employees actions were not
  deliberate or willful

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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.

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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

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EXAMPLES OF WHAT ISNT 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.

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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 claimants
  job.

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Examples of Off Duty Acts that are Connected with
Work

• Loss of drivers license for DUI occurring off
  duty, but job requires valid drivers 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.

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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.

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Preparing for the case(cont)

• 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

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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.

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EMPLOYER CHARGES

• CONTRIBUTORY
• QUARTERLY CHARGE STATEMENT, BY NAME AMOUNT.
• EXPERIENCE RATING DETERMINED AT BEGINNING OF
  YEAR.
• PRE-PRINTED QUARTERLY FILING PACKAGE MAILED 6
  WEEKS BEFORE PYMT DUE.

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EMPLOYER CHARGES

• REIMBURSIBLE
• DETAILED BILLING STATEMENT SHOWING ALL CHARGES
  FOR QUARTER.
• PAYMENT COUPON INCLUDED.
• MUST BE PAID W/I 30 DAYS FROM MAIL DATE.

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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

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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.

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COST MANAGAMENT TIPS (CONT)

• 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.