Transcript Title Master Page Sample - Idaho Association of Counties

Minimize Costs Associated with
Unemployment Insurance
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History of Unemployment System
The Great Depression
1935: Federal laws require
states to enact legislation
Unemployment benefits
paid by the employer
The claimant must …
Financed by federal (FUTA)
Be able to work
and state employer tax (SUI)
Be available to work
Be actively seeking work
Meet state’s monetary requirement
Be unemployed through no fault of their own
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How System is Funded: By Employers
Merit Rated Tax
– Tax based on employer experience
– Paid on portion of each employee’s earnings
– Includes various socialized costs
Direct Reimbursement
– 501(c)(3) Non-Profit, Government Entities, and Indian Tribes
– Dollar for dollar reimbursement as benefits are paid
– Certain protest rights on past claims are lost
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Unemployment Claim Eligibility and Liability
3Q
4Q
1Q
2Q
3Q
4Q
2012
2012
2013
2013
2013
2013
Last employer claim – The claim notice sent to the most recent employer from which the employee has separated.
Base period claim – The claim notice sent to each employer for which the claimant worked during the base period. Base Period
earnings determine weekly benefit amounts and employers chargeable proportionate to wages paid.
Alternative base period (if applicable) – Former employees who fail to qualify under the original base period may qualify under
an alternative base period on wages paid during the last four calendar quarters prior to the claim filing date.
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Unemployment Insurance – Today
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Faced with elevated improper payment rates, states are shifting
the responsibility for UC compliance to employers
Economic Recession
Peak
Recessionary
Period
11%
Increased
Unemployment Cost
$40B in annual
unemployment
benefits1
A Focus on UI Integrity
Conforming legislation now in effect
in all 53 jurisdictions
10%
9%
6.7%
8%
National
Unemployment Rate
7%
6%
5%
4%
‘08
‘09
‘10
‘11
‘12
Increased unemployment rates
Additional benefit claims
Insolvent state trust funds
$4.88B in improper benefits1
Increased benefit payments
10.81% improper charges1
2010-2012 overpayments: $16.64B1
Improper payment detection
Implementation of SIDES2
New compliance legislation
1
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U.S. Department of Labor, 2012
State Information Data Exchange System
The State Information Data Exchange System (SIDES) was developed
to promote UI integrity
A secure, web-based interface
facilitating direct data exchange
with state unemployment
insurance agencies
46 states will be on SIDES by the end of 2014
Provides clients with optimal
time for gathering separation
details and documentation
Increases accuracy of response
via standardized information
request
Reduces additional state
requests for information and
employer effort in responding to
these requests
Already live (41 Jurisdictions)
Live in 2014 (6 Jurisdictions)
Live in 2015 (2 Jurisdictions)
Unknown (5 Jurisdictions)
Decreases in erroneous benefit
charges leads to more accurate
employer tax rates
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Jurisdictions include 50 U.S. States, DC, PR, and VI
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= Equifax live (35 jurisdictions)
With the passing of the October 21st, 2013 deadline to enact UI
legislation, state interpretations of the mandate are now in effect
California: 1Up to 10 times the weekly
benefit amount (false statement penalty)
Conforming legislation now in
effect in all 53 jurisdictions
Louisiana: 1$50 - $1000 (false
statement penalty)
Maryland: 1$15 penalty per instance
Massachusetts: 1$25 penalty per
instance and loss of appeal rights
Minnesota: Employer must pay the trust
fund the amount of the overpaid benefits
(insufficient response penalty); 1Up to
$500 (false statement penalty)
Nebraska: Loss of appeal rights
Vermont: 1$100 penalty per instance
Virginia: $75 penalty after third offense
1Implemented
by state prior to new UI Integrity legislation (MN already had the $500 false statement penalty)
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CaseBuilderTM provides a centralized, secure, and user-friendly
location for efficiently managing all claims activity online
Combined with SIDES, CaseBuilder guides
employers through a consistent progression
of requests leading to efficient production of
state mandated data.
Increased visibility into case detail
Enhanced communications and
process control
Increased accuracy and timelines
of response
CaseBuilder has provided significant
improvement in both protest and initial win rates!
Streamlining the unemployment process, CaseBuilder allows employers to manage multiple cases,
identify and enter details for a specific claim, upload multiple documents, and schedule representation –
all from the same view!
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SUFFICIENCY
WHAT IS A SUFFICIENT RESPONSE?
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Clues
 Some claim notices are very specific about what the claimant has
reported
 If the claimant’s story differs from the information we have been given from the
employer, it should prompt a discussion
 Some claim notices ask very specific questions about the claim
 If we respond to those specific questions with details and facts, we should be
found to be sufficient
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Sufficient Facts - Quit
These details are important and may be necessary:
 Date of Resignation
 Whether claimant completed notice, or was paid through notice
 Any work-related concerns related to resignation reported by claimant prior to
leaving
 Any efforts made by the employer to resolve claimant’s concerns
 Any efforts claimant could have made to attempt to resolve concerns prior to
leaving
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Sufficient Facts - Discharge
 Proof of Misconduct Must Include:
 The specific reason(s) for the separation (If discharged for attendance, provide the
number of absences, dates occurred, and reasons)
 Copies of policies, warnings, handbooks, documents, and/or contracts signed by and
pertaining to the employee and which are relevant to the specific situation
 Detailed information about the circumstances and the events leading to the termination
 Videotaped evidence, first-hand witness statements, or other similar information
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HOW DO YOU PREPARE?
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Types of Separations
Voluntary Quit
•
“I quit”
•
No show/No Call for three
or more days
Lack of Work
Discharge
•
Misconduct
•
Attendance
•
Violation of Policy
•
Completed
Assignments
•
Plant closing
•
Position eliminated
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Voluntary Quit
The burden of proof is the responsibility of the former
employee to show there was good cause to quit
attributable
to the employer.
Good Cause
A change in the condition of employment or
compelling reasons.
Continued employment must be available.
Forced resignation = DISCHARGE
ALWAYS ask for a signed letter of resignation
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Discharge
The burden of proof is the responsibility of the employer to
prove that the employee was discharged for
misconduct.
Misconduct
A deliberate and willful disregard of
employer’s interest or repeated violations
of a known company policy
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Lack of Work
Not Disqualifying
 Intent of Unemployment
Job Eliminated
 No positions available
Reduced hours
 Full-time to Part-time
Job Offers and Refusals
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Critical Areas:
Effective Company Policy
Proper Documentation
Disciplinary Action
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Effective Company Policy
Consistent – all employees
Clear – not open to interpretation
Easy to understand
– Complicated = hard to enforce
Aware – signed acknowledgement
Immediate notification of change
– PLUS another signed
acknowledgement
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Effective Company Policy (continued)
Follow the policy exactly as it reads or it will
not protect you
Ensure that the policy is uniformly enforced
A “mixed bag” policy is not generally
considered misconduct
Design policies that adhere to your state’s
unemployment laws
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Drug- and Alcohol-Related Separations
The burden of proof belongs to
you!
Valid reasons for testing
include:
Reasonable suspicion
Random *
Post-Accident
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Drug- and Alcohol-Related Separations (continued)
Required documents:
– Copy of the controlled substance policy with
signed acknowledgement
– Copy of the actual test results
Chain of Custody
– California and Arizona - yes
– Put State specifics here
Lab representative participation
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No-Fault Attendance Policies
It removes any ambiguity or interpretation from the issuance of
points under the attendance policy
The state will look at the reason for the tardiness or
absenteeism and determine if there was good cause for the final
incident (within the meaning of its unemployment law)
Good cause for the absence = no misconduct
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Misconduct vs. Inability (Wouldn’t vs. Couldn’t)
Misconduct is generally defined as a wanton disregard of an
employer’s policy. If you cannot prove misconduct, your case
will probably be adjudicated as poor work performance
(inability to do the job).
Is the person trying but just not able to grasp the duties of the job?
Does the individual have the skill set to perform the job?
Can you show the individual performed this job in an acceptable manner for a
reasonable period of time?
Did he/she knowingly do anything to cause the termination?
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The Importance of Documentation
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Proper Documentation
All counseling sessions and warnings should be documented in
writing – even if only informal or verbal
The document should be signed and dated by the individual
issuing it
Be sure to issue the document in a timely manner
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Document Availability
The claimant’s file, including all
documentation, should be retained on-site
in a secure location for at least 18 months
for unemployment purposes
Files need to be readily available for your
staff members to ensure a timely
response to claims
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Disciplinary Action
Take immediate action
Clearly document what led to the disciplinary action & what action is being taken
If an investigation was conducted, by whom?
Be sure the action taken complies with policy and prior warnings
Must be administered by authorized personnel (owner, manager, Human
Resources, etc.).
If associate refuses to sign, document that refusal
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Warning Documents
Clear and legible
Detailed summary of what happened
Company policy that was violated – reason for warning
Actions and/or changes expected
Next disciplinary action if not corrected
Signed and dated by issuer
Timely (no delays)
Wherever possible – have a witness
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Documentation Final Thoughts
As documents are created during the course of employment, keep in
mind that many times you will have the burden of proof with the
unemployment office
The scope of your documentation may extend beyond
unemployment.
Your organization may require it for other legal issues such as a
discrimination suit.
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Preparing for & Attending the Hearing
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Appeals and Hearings Service
Experience and Expertise
Timely hearing notification and witness preparation
Over 100 full time hearing consultants
Over 80 full time hearing representatives
Average tenure 15 years
Preferred representatives assigned
Formal legal training and continued internal education
Industry leader regarding internal hearing representation
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Hearing Notice: What Now?
Read instructions carefully
Put it on your calendar
Review employee documentation
Review claimant’s statement
Identify & prepare first-hand witness(es)
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Importance of First-hand Testimony
If the facts are in dispute:
First-hand testimony is essential.
Hearsay testimony is given less weight than
first-hand, eye-witness testimony.
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Do’s & Don’ts
Environment
Expectations: At the Hearing
Hearings are recorded.
Testimony is taken under oath.
Employer begins in discharge
cases.
Employee begins in voluntary
quit cases.
Address the facts.
Only respond when asked.
Remain unemotional.
Rebut any claimant statements
that are false.
Offer a closing statement that
supports the reasons the
claimant should be denied
benefits.
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After The Hearing
Decision usually within two weeks.
Right to further appeal (for both parties):
Written argument to decision
No new evidence taken
Final recourse – Court of Appeals or other state venue
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Questions and Answers
For more information please contact:
Name: Jack Holihan
Title: Account Manager
Equifax Workforce Solutions
Work: 916-984-7701
Cell: 916-529-9332
Email: [email protected]
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