1. 1 UNEMPLOYMENT INSURANCE BENEFITS

2. 2 What is Unemployment Insurance? Federal/State program developed in the 1930’s Designed to stabilize the economy Benefits cannot be denied to claimant unless we have evidence showing the claimant is not eligible to receive them Insurance - funded by employers through payroll tax – NOT an entitlement program

3. Partnership The UI Program is a partnership between employers and the UI Division (UID) Timely and detailed information from the employers is vital to making the correct eligibility decision UID determines claimant eligibility for benefits based on information provided and application of UI laws and Administrative Rules 3

4. Program Integrity continued Overpayments caused by: Employers not responding timely or adequately prior to the initial determination New legislation 39-51-605 MCA Failure to seek work Failure to correctly report hours and gross earnings 4

5. Who Can File a Claim? Anyone can file a UI claim – anytime File online at UI4U.mt.gov, or By Calling the Claims Processing Center 406-444-2545 or 406-247-1000 UID determines if the claim is eligible. 5

6. 6 Base Period Wages UI claims are based on wages in the claimants’ base period first four of the last five completed quarters The claimant could have worked for you as far back as 18 months, and wages you reported quarterly would appear in their base period

7. 7 Alternative Base Period (ABP) When a claimant does not have enough wages to be monetarily eligible in the regular base period, he/she can possibly use an ABP The ABP is the last four completed quarters The employer may be asked to provide the wage information for the last quarter completed if they haven’t been reported yet

8. Base Period Information Wages reported during the base period or alternate base period are used to determine claimant’s benefit amount, and Any employer who paid wages during the base period of a claim is potentially chargeable for benefits paid on the claim 8

9. 9 Weekly Benefit Amount In most cases the weekly benefit amount is 1% of the total base period wages Maximum benefit amount: $464 per week Minimum benefit amount: $ 132 per week

10. Duration of Benefits Claims last for one year from the week filed Maximum of 28 weeks of full benefits Minimum of 8 weeks Can draw benefits on the claim until their monetary entitlement is exhausted or the claim year ends – if continue to be eligible Every UI claim has a waiting week 10

11. 11 Emergency Unemployment (EUC08) Currently Montana has EUC benefits for claimants that have exhausted their UI claim These benefits are paid by the federal government We currently have one Tier of emergency benefits EUC program is scheduled to expire 12/28/2013 EUC benefits are not chargeable to employers

12. 12 Non-”Monetary” Qualifications Able and available for full time work Actively seeking work – full time work unless UID has allowed them to seek part-time, unless job/union attached Actively registered with Job Service Must report refusals of work

13. 13 Job Attached If a claimant is not working at all, they can be job attached if they will be returning to 30 hours or more a week and there is at least an estimated date of return, or If the claimant is working part-time, they can be job attached if they will be returning to full time (40) hours per week est. date Employer can elect not to job attach a claimant

14. 14 Partial Benefits Working Part-time Claimant worked less than their customary hours per week and earned less than two times the weekly benefit amount Claimants are required to report hours and gross earnings on the payment requests Claimants receive a reduced benefit based on reported earnings. Benefits are reduced by $0.50 for each dollar earned over ¼ of their weekly benefit amount

15. Customary Hours Individuals who regularly work less than full time (40 hours/week) are considered to be fully employed during any week they work their customary hours or more Customary Hours are a calculation of the average number of hours available to the claimant per week during their base period Base period employers are asked to provide the hours the claimant worked each week of the base period plus hours available but not worked due to weather conditions, holidays, sick or personal leave 15

16. Unpaid Leave of Absence Leave of Absence (LOA) must be requested by the claimant and approved by employer An administrative leave imposed by the employer is a suspension for UI purposes Claimant is not considered separated from the employment Claimant is ineligible to receive benefits unless the LOA is due to an on-the-job injury 16

17. LOA continued If the claimant doesn’t return to work at the end of the LOA, a separation has occurred If work is not available – layoff If claimant chooses or is not able to return – quit If the employer doesn’t let the claimant return to work – discharge 17

18. Unpaid Suspension If the claimant is placed on a suspension, benefits are denied for up to the first 2 weeks of the suspension If the suspension last longer than 2 weeks, the suspension becomes a discharge for UI purposes 18

19. Suspension – Employer Information Dates the claimant was suspended If the suspension is paid or unpaid If the claimant is expected to return to work for you 19

20. 20 Separations Investigated by UI Last employment No matter when that separation occurred Any employment within six weeks prior to the initial or reactivation date There can be multiple separations during this period and all the separations must be found to be non-disqualifying for the claimant to be eligible to receive benefits

21. 21 Separations In order to allow benefits when a separation has occurred, UI Law requires: If the claimant quit the job, the reason for quitting must be attributable to the employment With a few exceptions Claimants bear the burden of proof If the claimant is discharged, the reason for discharge must be for misconduct as defined by UI law Employer bears the burden of proof

22. 22 Examples of Qualifying Separations Lay off due to a lack of work Lay off/end of a temporary job or contract Quit for work related reasons Discharge for reasons other than misconduct – regardless of probationary period

23. 23 Temporary Employment Completion of the agreed upon assignment, contract, or project – layoff - lack of work If the claimant leaves prior to the agreed upon end of the work – quit If the employer terminates the employment prior to the agreed upon end date – discharge

24. Valid Notice If a claimant gives a valid notice of leaving, but the employer lets them go prior to the end of the notice period, the separation is considered a quit If an employer gives a valid notice of termination (discharge/layoff), but the claimant leaves prior to the end of the notice period, the separation is considered a discharge 24

25. 25 Quit for Work Related Reasons Benefits May Be Allowed If the claimant can show things like: Adverse working conditions Change in working agreement On-the-job injury Did not receive pay A compelling reason in itself, is not sufficient to show good cause. The claimant must show they gave their employer a reasonable opportunity to correct the problem prior to leaving

26. Employer Documentation Document employee complaints/concerns Include what steps you took to resolve the problem If you could not resolve the problem explain why If you conducted an investigation of the problem, document that in the employee file – what you did and the result 26

27. 27 Quit for Personal Reasons Benefits May Be Denied To move To accept or seek other work To care for a family member Child care or transportation problems Dissatisfaction with working conditions Not given promotion Conflict with supervisor or co-worker After reprimand Distance to work – unless the job site moved and that is not normal to the occupation

28. Allowable Personal Reasons Domestic violence Quit to follow military spouse Leaves temporary work to immediately return to their regular employer Leaves work because of being ordered to military service of less than 6 weeks 28

29. Quit Requalification A quit disqualification can be ended if: The claimant has worked and earned 6 times their weekly benefit amount, in employment covered by UI, after the disqualifying separation occurred If the claimant has attended school for 3 consecutive months at an accredited educational institution after the separation occurred 29

30. Personal Medical Quit If the claimant was unable to work due to a medical condition for 7 consecutive work days, it is considered a medical quit. If the claimant was advised to leave by a licensed and practicing health care provider, and They have been released to return to their previous or similar position without restrictions, and They check back with the employer and offer to return to work but no work is available Disqualification can be ended 30

31. Medically Unsuitable If the medical condition is permanent or long term and the claimant’s health care provider advised them to change occupations or work environments, the work is no longer suitable for the individual and benefits can be allowed 31

32. 32 Discharge for Misconduct Benefits May Be Allowed Missing money or items Employer not able to show claimant took the missing money or items Absence or tardiness that claimant could not control Illness Weather related Employer’s statement not provided Unintentional property damage Inability to do the job satisfactorily Seeking other work

33. 33 Discharge for Misconduct Benefits May Be Denied Refused to perform work as instructed Absent, failure to notify employer Excessive absence or tardiness within their control Decline in the quality of work Rude or offensive behavior Conduct on the job

34. Off Duty Conduct In order for off duty conduct to be determined as misconduct, the conduct must: Significantly and adversely affect the claimant’s ability and capacity to perform job duties; and Significantly and adversely affect the employer’s business to a substantial degree Connection between the misconduct and its affect on the employer’s business must be reasonable and discernible. Speculation is not sufficient 34

35. Discharge Requalification A discharge disqualification can be ended if: The claimant has worked and earned 8 times their weekly benefit amount, in employment covered by UI, since the disqualifying separation occurred 35

36. Employer Documentation Detailed description of the final incident that directly led to the discharge – including what happened, when, who was involved and witness statements if possible Company Policy – if the discharge was for a violation of a company policy, you must provide a copy of the policy and documentation showing the claimant was aware of the policy 36

37. Warnings Warnings can be verbal or written but the same components should be documented: A description of the incident that led to the warning Date of the incident Date the warning was issued Expectations for correction of that particular problem, and The consequences if the problem continues 37

38. Warnings continued Written warnings should: Be signed and dated by the person issuing the warning Ask the employee to sign and date an acknowledgement that they received it – even if they don’t agree with it. (giving them an opportunity to respond to it can work in the employer’s favor) Good idea to have a witness present who can attest to the fact that the warning was issued 38

39. Warnings continued Remember warnings must have consequences attached to them or they are just discussions Discussions (formal or informal) for on- going training or performance enhancement are not warnings 39

40. Employer Tips Company policies are great, but they should be reasonable and they must be followed If you do not follow your policy, your actions or inaction overrides the policy and sets the expectations for your employees If your policy says termination will occur after 7 absences, but the 7 th absence is not within their control, UI will not consider the discharge to be for misconduct 40

41. 41 Gross Misconduct A criminal act other than a traffic violation for which the claimant: has been convicted in a criminal court, or has admitted,or conduct that demonstrates a flagrant and wanton disregard of and for the rights, title or interest of a fellow employee or the employer Theft of property or funds - $100 or more constitutes gross misconduct for UI purposes Disqualification is for 52 weeks

42. Separation Investigations Claims Examiners contact employers by phone, fax or mail to obtain separation information Information from you is vital to making the correct eligibility determination If you fail to respond timely or adequately, without showing good cause for your late or inadequate response, you risk losing your interested party status and if an overpayment results, it will not be credited to your account 42

43. Good Cause Reasonably compelling circumstances which did not result from an act or omission on the part of the person claiming good cause and which could not be overcome by reasonable diligence on the part of the person 43

44. Employer Responses Be sure you answer all the questions that are asked Even if you don’t think the question applies Provide details – dates are extremely important Saying something like the final incident was for poor performance is not sufficient Need details – what happened, when etc. 44

45. 45 What to Provide… When a claim is filed, provide all separation information, including copies of disciplinary actions and policies Address the issue that resulted in the termination – the final incident Even if there was an accumulation of incidents, there must be a final incident that finally led you to decide to discharge Prior warnings/incidents should be related to the actual reason for discharge

46. 46 Questions to Answer Tardiness and/or Absence How many times the claimant was tardy and/or absent, including dates, and the reasons the claimant gave for each incident The procedure the claimant was given for notifying your business of tardiness and/or absence, and if the claimant followed that procedure

47. 47 Drug or Alcohol Violation Describe how you determined the claimant was under the influence of drugs or alcohol Provide a copy of the company Drug/Alcohol Policy If the claimant was tested, explain why (pre- employment, suspicion, post accident etc.)

48. Drug or Alcohol continued If the test was for a pre-employment requirement, explain why you allowed the claimant to work prior to receiving the test results Benefits cannot be denied if the claimant failed or refused to take a drug/alcohol test unless the employer’s drug/alcohol testing policy meets the requirements of state law or federal regulations 48

49. Drug or Alcohol continued If the claimant’s position does not meet the definition of an employee who can be drug/alcohol tested under the law, benefits will not be denied unless the employer can show the claimant’s behavior/performance meets the definition of misconduct 49

50. 50 Theft Provide evidence to show: Theft occurred The claimant was responsible for the theft Witness statements Charges have been filed

51. 51 Job Performance Describe the job the claimant was hired to do, and the training you provided, including dates The length of time the claimant worked in the job If the claimant had done the job satisfactorily in the past, describe the circumstances that led to a decline in the quality of work If the claimant was given a chance to improve, explain and provide supporting documentation

52. 52 Loss of License or Insurability Describe the job requirements, and if the claimant met those requirements at the time of hire, or what efforts were made by the claimant to meet the requirements Describe the incident(s) that led to the loss of license or insurability and subsequent discharge, and how it affected your business

53. Witness Statements Witness statements must be Signed and dated In their own words Include what they witnessed, when etc Must be shared with the claimant to give them an opportunity to respond to the information 53

54. 54 Employer Accounts Experience Rated Employers For profit employers Governmental Employers Funding comes from a governmental source Reimbursable Employers Non-profit organization that qualify for a 501(c) (3) exemption with the IRS

55. 55 Proportional Charging Employers are charged based on the percentage of wages paid as compared to the total wages paid by all employers in the claimant’s base period If ABC Company paid 78 percent of the wages in the claimant’s base period, they are potentially chargeable for 78 percent of the benefits paid on the claim If your account is chargeable and another employer’s account is relieved of charges, the percentage your account is charged does not change

56. 56 Governmental Employer Charge Relief Charges are relieved if: The claimant is still working at the time the claim is filed and there is no reduction in hours or wages or the reduction is less than 10% You will be asked to provide information for the 4 weeks prior to and the 4 weeks following the effective date of the claim.

57. 57 Appeal Process Initial Determination Re-determination Hearings Bureau Board of Labor Appeals (BOLA) District Court Supreme Court

58. 58 Programs In Place To Detect Fraud Claims Investigations - quarterly Tips – uid.mt.gov for fraud reporting form Cross-matches Workers Comp Jail New Hire Report & rehires after more than 60 days State Employees – when completed we will cross- match state employees every payday

59. 59 Providing Information to Unemployment Insurance Claims Processing Centers Helena(406) 444-2545 Billings(406) 247-1000 Fax: (406) 444-2699 Fraud investigation: Earnings: Jamie Valvoda (406) 444-1765 Sy Sundsted(406) 444-2937 Jerry Lord (406) 444-1709

60. 60 Questions? General Unemployment Insurance Benefit questions ui4u@mt.gov Employer Charging (406) 444-0399 UID DLI.UID.MT.GOV/Tax