1. UNEMPLOYMENT COMPENSATION WHAT EMPLOYERS NEED TO KNOW

2. ORIGIN OF THE UI PROGRAM CREATED IN 1935 AS PART OF SOCIAL SECURITY ACT

3. 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.

4. 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

5. STATES’ RESPONSIBILITY DESIGN & ADMINISTER OWN UI PROGRAM WITHIN FRAMEWORK OF FEDERAL LAW.

6. 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.

7. 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.

8. 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)

9. 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.

10. 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

11. WHO’S 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.

12. CLAIMS PROCESS  NOTICE OF POTENTIAL LIABILITY TO EMPLOYER  WAGE AND SEPARATION REPORT TO EMPLOYER  SEPARATION REASON INDICATED BY CLAIMANT

13. 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.

14. 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.

18. 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.

19. 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.

20. WHEN THE HEARING IS OVER DEPUTY’S WRITTEN DETERMINATION WILL BE BASED ON FACTS PRESENTED BY EACH PARTY CONSISTENT WITH APPLICATION OF UI LAW.

21. 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.

22. 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

23. 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

24. 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.

25. 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

26. 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.

27. 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

28. 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.

29. 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.

30. 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.

31. 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.

32. 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

33. 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.

34. 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.

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

36. 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

37. 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.

38. 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.