Minimizing Your Company s Unemployment Costs

Transcription

1 Minimizing Your Company s Unemployment Costs Arlene Klinedinst For Associated Builders and Contractors October 8, 2010 aklinedinst@vanblk.com (757)

2 Unemployment Compensation Basics Every state has slightly different laws and procedures Virginia Law covered in this presentation This is general education not legal advice for any specific case Unemployment tax follows claims experience

3 Virginia Employment Commission (VEC) Website: Responsible for handling unemployment claims Maximum weekly benefits rates and employer tax rates change often Current maximum weekly rate is $378 for a maximum of 26 weeks - $9,828 The maximum number of benefits weeks is sometimes extended

4 Covered Virginia Employees Unemployment law covers Most of Virginia employers of one or more employees, paid at least $1,500 total, who worked at least 20 weeks in current or preceding calendar year Some small (less than 4 employees) religious, charitable, educational, or non-profit employers are exempt Last 30-day employer / 240 hours worked is liable for UC benefits

5 Two-Step Process for Individuals to Receive Unemployment Benefits Eligible or ineligible? Depends on many factors Controlled by employee Qualified or disqualified? Depends on reason for termination or pay reduction Last 30-day employer s reason

6 Eligibility for Benefits Earned at least $3,000/quarter in at least two quarters in previous year Unemployed or underemployed Not striking Not receiving benefits from another state or federal government Able to work Available for suitable work Seeking work Employee has burden of proof

7 Disqualification from Unemployment Benefits Employer has burden of proof Voluntarily quits disqualified If employee had good cause to leave, will not be disqualified forced resignations are not voluntary If employee gives two weeks notice of resignation, and employer immediately fires her, without paying her for the two weeks, she will be eligible for up to two weeks of benefits

8 Disqualification (cont.) Discharges for willful misconduct disqualified Violating reasonable company rule reasonably designed to protect legitimate employer interests, OR Acts/omissions of such nature or so recurrent that they show willful disregard of employer s interests

9 Disqualification (cont.) Positive drug tests - may be disqualified Must have published anti-drug and alcohol policy However, the employer must publicize the drug policy and must consistently enforce it The test must be performed by an accredited laboratory in accordance with the scientifically recognized standards and rules

10 Mitigating Factors in Assessing Misconduct Insignificance of Employer s Business Interests Employer s Rule Not Serious No Prior Enforcement of Rule Employee had Good Cause to Violate Rule Rule not Consistently Enforced

11 Employee Behavior Not Considered Misconduct Negligence or carelessness in performing duties Attendance problems for which employee was never warned Poor or inefficient job performance for which the employee was never warned. Employee s inability to ever do the job, despite the employee s good faith efforts to do so General behavioral or personality problems

12 Other Considerations by VEC Refusing suitable work False or Misleading Statement Concerning Criminal Convictions False Statement During Claims Process

13 Procedures for Contesting Claims VEC Claim for Benefits Employer s Report of Separation First Level: The VEC Deputy Second Level: Appeals Examiner Third Level: The Full Virginia Employment Commission (usually one Special Examiner ) Fourth Level: Judicial Review by Circuit Court Fifth Level: The Virginia Court of Appeals

14 Practical Tips for Employers Watch the thirty-day threshold Have written workplace rules and policies that are communicated to all employees Verify information provided on resumes and applications Read and respond promptly to all Virginia Employment Commission correspondence

15 Practical Tips (cont.) Attach additional documentation if necessary Participate in the proceeding at the Deputy level Pay close attention to appeal deadlines Make an appearance and present evidence at the Appeals Examiner level

16 Practical Tips (cont.) Evidence must include testimony from key witnesses to the relevant facts (e.g., supervisors, co-workers, drug-testing, technicians, etc.) The Appeals Examiner hearing is the last chance the employer will have to introduce evidence or testimony Remember the interaction between unemployment claims and other employment-related lawsuits

17 VEC Fraud Hotline Number

18 Minimizing Your Company s Unemployment Costs Thank you for attending! Arlene Klinedinst aklinedinst@vanblk.com (757)