Hutchinson

MCHRMA

2013 Spring Conference

Unemployment Benefits • Managing your UI account online

• Applicant eligibility & requirements

• How and when to respond to a “claim”

Wayne’s Contact Information:

Gary’s Contact Information:

Purpose of the UI Program

The program assists workers unemployed through no fault of their own by providing temporary income assistance. This helps maintain personal, local and state economic

stability. Unemployed workers can still pay their rent and buy gas

and groceries from local businesses. They have time to find gainful work, instead of relocating

or “panicking” and taking a job that won’t support them.

Address: www.uimn.org

We’ve developed a revised online Employer Handbook

Also note the availability of a detailed User Guide for the

Employer Self-Service System

Both publications are also available on the “Help & Support” page…

(applicant side main web page)

Reimbursable Account Option

Governmental employers (including school districts) default to the “reimbursement method” of UI reporting.

Reimbursing employers must repay benefits received by their former employees on a dollar-for-dollar basis at the end of each calendar quarter.

They have the option to be pay UI taxes instead.

Cost of Taxpaying vs. Reimbursing

UI Taxpaying Method UI Reimbursing Method

Cost of paying UI taxes quarterly on every worker, even if no employee received benefits

Not required to pay UI taxes

Charged 125% of UI benefits paid Charged 100% of UI benefits paid

Cost is spread out over four years Cost must be paid in full every quarter

Can budget projected costs of benefits Difficult to project cost, as it can vary from quarter to quarter

Usually not charged for quits or discharges for misconduct

Will usually be charged if NOT the most recent employer, even for quits or discharges for misconduct

When employer switches method, must continue it for at least 8 quarters.

UI Tax Rates (so you know what you’re missing)

Every taxpaying employer pays UI tax on the first $29,000 paid to each employee annually.

Total tax rate for beginners is 3.52 %

That’s $1,021 for every employee annually, whether anyone was paid UI benefits or not.

In good times, rates lower slightly, and vice versa.

A taxpaying employer’s tax rate can fluctuate Rate is adjusted annually

If NO claims for two years, rate can be as low as 0.67%

= $194 per employee per year

If seasonal or big layoffs, rate will climb to as much as 10.8% = $3,132 per employee per year

(Dollar amounts are for employees making at least $29K.)

Why must reimbursers report quarterly wages, when they don’t pay a tax?

When claims are filed, USDOL requires prompt calculation and payment of benefits

US Dept. of Labor statistics (12th of Month Data)

Minnesota Labor Market Info (Wages & Hours)

To help detect fraud, when an applicant does not report earnings to UI, Work Comp, welfare, etc.

Benefits Paid Charge Statement (mailed to all employers quarterly)

Taxpayers

Reimbursers

to Account Experience

Payable Quarterly

Benefits Paid Charge Statement, cont. (totals by individual)

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Web Portal to Benefits Paid Charge Activities

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Web page: Benefits Paid Charge Activities

(Access charges by individual, week, quarter, or year)

Benefits Paid Charge Activities, cont. - charges by applicant

- search by applicant SSN or name

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Benefits Paid Charge Activities, cont. - applicant detail by week

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Benefits Paid Charge Activities, cont. - other search methods

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Benefits Paid Charge Activities, cont. - file download by quarter

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Benefits Paid Download File - Raw

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Benefits Paid Download File - Formatted

When should employees get UI benefits?

And why do YOU pay when their unemployment is not your fault ?

To be eligible one must:

Have earned $2,500 in wages anywhere in the past four quarters

Lose work for an eligible reason (more on that later)

Apply for benefits (one week retroactivity)

Meet weekly requirements: able, available, & actively seeking work

Report other income that may reduce or delay benefits

Wages earned determine benefit amounts Wages from all insured employment are used Includes wages in other states and the military Weekly Benefit Amount = half average weekly wage Duration (starting balance) = 1/3 total base period

earnings up to max 26 times Weekly Benefit Amount A benefit account is good for 52 weeks or until balance

is gone. Periods of unemployment may be sporadic.

Charge Relief in Specific Circumstances The following slides are a list based on MN Statute 268.047, the “rules” for employer charges. Keep in mind: Charge relief can only occur if you or the applicant tells us

about a circumstance, aka “raise an issue”.

Most issues are raised by the questions we ask applicants on their UI applications or weekly payment requests.

If the issue involves you, you get a questionnaire to complete, followed by an appealable determination.

Charge Relief in Specific Circumstances, cont.

If you get a “claim” notice and no questionnaire, YOU need to “raise an issue” (if you think there is one).

A claim notice may be titled: o Determination of Benefit Account (you paid some base

period wages) o Notice of Benefit Account (you paid no base period wages,

because you employed them for a recent short period) o Notice of Reactivation of Benefit Account (applicant is

reopening an account that is less than 52 weeks old)

Charge Relief in Specific Circumstances, cont.

A law required the employee’s removal from his or her position. (loss of license, work authorization, etc.)

Volunteer firefighting or ambulance service personnel who still work for you on-call or otherwise

Replacement worker for military reservist (work 6+ months) Employer not a party in a strike, but its workers idled by it Applicant filed for UI against another state, and MN wages

used by that state to pay UI

Charge Relief in Specific Circumstances, cont.

Aggravated employment misconduct - discharge for any act equivalent to a gross misdemeanor or felony, if it could adversely affect the employer (no prosecution required)

Unemployment caused by disaster or property condemnation (if 25% of employees idled)

Charge Relief in Specific Circumstances, cont.

You continue to provide regularly scheduled part-time work, at least 90% of the base period schedule.

This occurs when part-time employees lose their other, usually full-time, jobs.

No relief of charges if the work is on-call, seasonal, or the scheduled hours go up and down considerably.

Charge Relief for taxpaying employers only MN Statute 268.047, subd.3

The applicant quit (and it wasn’t the employer’s fault).

The applicant was fired for simple misconduct, not aggravated misconduct.

A reimbursing employer will be charged for benefits paid to an employee who:

- quit or was fired for simple misconduct AND - requalified for UI benefits by working a new job

Requalifying for UI Benefits Joe quit because you didn’t like his long hair and you wouldn’t give him two months off to go surfing. You think Joe should be disqualified from getting UI benefits until: a) pigs fly b) something freezes over c) he works again and is paid at least $1,250 at new work

Requalifying, cont.

Joe came back from surfing and got a job.

It ended after two months and he applied for UI.

Guess who paid most of Joe’s base period wages?

This causes you, if reimbursing, to be charged your prorated share of benefits now payable to Joe.

But be prudent, protect your account Respond to questionnaires or raise an issue any time an applicant

quit or was discharged for possible misconduct.

You might not know if Joe earned $1,250 in new insured work since leaving your employ, and some employment is not insured.

Also, raise an issue if you know that Joe is working somewhere* or might not be fully available for work for some reason, such as being a full-time student (we can’t make him cut his hair).

*Benefits, and charges to you, are reduced for weeks an applicant works at a part-time job.

Voluntary vs. Forced Quits

The test is: Did the employee know he had the option to keep working?

If not, he was fired. Signed resignation notwithstanding. The issue only is whether there was misconduct.

Performance improvement plans (PIP): If an employee resigns because he thinks he can’t meet the requirements of a reasonable PIP, he is not eligible.

10 “eligible” quit circumstances - illness or injury to self or to care for disabled immediate family member: no accommodation available, leave expired, etc. - accept a definite offer of a better job, it falls through - quit unsuitable job w/in 30 days (much lower pay or trying new occupation) - dislocated worker quits new unsuitable “interim” job to enter job training - quit a part-time job, UI benefits based on no-fault loss of full-time job - notified of definite layoff date w/in 30 days, not UI eligible until layoff date - loss of child care, tried to find new, requested time off or accommodation - had to quit due to verified domestic abuse - spouse got new job or job relocation, too far to commute reasonably - Compelling reason for which the employer is responsible (most common:

cuts in hours or pay (20%+), reneging on hiring agreement, total change in job duties)

Quit due to Working Conditions Includes physical and interpersonal environment,

job tasks, work load, schedule, etc.

To be eligible, the adverse conditions must be serious and the employer’s responsibility.

The test is: Would the average reasonable worker quit because of it?

The employee must complain to the employer and give the them an opportunity to correct the adverse conditions.

Leaves, Suspensions, Investigations

Most applicants on medical leaves are not eligible because they are not able or not seeking work.

An applicant is eligible for UI benefits during an unpaid suspension unless misconduct is shown.

An unpaid suspension of more than 30 days, or of unknown

duration, is a discharge.

Employees are not eligible if they quit because they think they will be fired because of an investigation.

Discharge for Misconduct

A discharged employee is eligible for UI benefits unless facts show employment misconduct by the applicant.

Nutshell definition: Misconduct is intentional or negligent conduct that is serious or repeated, and (potentially) adverse to the employer.

Law definition: MN Statute 268.095, subd. 6

Mnemonic: Serious + Intentional or Negligent = S - I - N

What makes conduct “serious”?

Duh! - intentional harmful acts - dishonest or criminal conduct that affects employer or coworkers

Employer Policy: - does it prohibit the behavior? - is potential discipline spelled out?

Repetition: - minor conduct can become serious when repeated - late or absent too often, dress code, conflict with coworkers, etc.

What makes conduct serious? cont… Warnings, your best tool? - Intentional disregard of one warning may be serious. Example: You must call your supervisor when absent. - Progressive warnings can make minor, less intentional, violations serious. Example: Final warning - you must be on time for 60 days. - Give verbal warning or written warning? First might be verbal. After that, written! (get a witness if appropriate)

Caused by inability (not competent or skilled enough) Caused by incapacity (medical condition or other limitations) Caused by mental illness or impairment Caused by domestic abuse or chemical dependency Reported absence due to illness of employee or

their dependent Errors, forgetting , inefficiency Instances of minor unsatisfactory behavior or

poor judgment

What conduct is NOT misconduct? MN Statute 268.095, subd. 6 (b)

Some employers count absences and tardies against one’s record, regardless of the reasons for them. But for us to decide it’s misconduct, the attendance record must amount to S - I - N. Was it excessive and did you warn the employee? (Serious)

How much was Intentional or Negligent? (i.e. “preventable”, caused by one’s own action or inaction after being warned) Average absenteeism = 7 days per year

1 in 5 workers are tardy once per month

Absentee record: Excessive (serious)? Negligent?

Employees are responsible for transportation and child care.

Continued absence/tardiness is negligence when an employee does not act to prevent it. (find alternate transportation or childcare, leave home earlier)

Illness is not misconduct, but failing to provide a doctor’s excuse when reasonable (?) may be misconduct.

One absence may be misconduct: no call-no show, lying about reason for absence, taking disapproved time off

Absenteeism, cont.

Possible Misconduct: how to respond

If NO alleged wrongdoing, give one phrase about the reason. (Example: “Unsatisfactory performance due to inability”)

Documentation: policy, warnings, incident reports, if discharge was for absenteeism > attendance record including reasons

Clarity and consistency, not a “laundry list” (Multiple reasons? No final incident? Probably not misconduct.)

Give facts, not conclusions like “he was insubordinate”. (What did he do or say? To whom? What was the situation?)

Explain why it was serious and how it was intentional or negligent (copies of warnings or policy might suffice)

Witness statements when appropriate vs. possible “hearsay” from H.R. or management

Weekly Requirement: Available for Work

Can accept and begin work without delay.

Must be available for the usual hours and days of one’s occupation.

Must be willing to commute a reasonable distance, using public or private transportation, car pool, etc.

A student must be willing to quit or rearrange classes to accept a job, unless he is a dislocated worker in full time training.

Weekly Requirement: Able to Work

Medical restrictions are okay if seeking and willing to accept work that is available within the restrictions.

If medical restrictions prevent usual occupation, may seek other work.

Weekly Seeking Requirement: Work

Unless recall date within 6 weeks, must complete online self-assessment and work search plan.

May be required to attend reemployment assistance session and workshops at WorkForce Center.

Not UI eligible when missing sessions or workshops without good cause, or not completing work search plan.

Seasonally laid off workers must seek alternate work that pays 75% or more of usual weekly pay.

Unavailable for Work, Refusing Work Benefits for a week are reduced by one-fifth for each work

day an applicant is unavailable for work for any reason.

Exceptions: jury duty and dislocated workers in approved training programs.

Refusing suitable work without a good reason disqualifies one from UI benefits for the next eight weeks.

Income that affects Benefits

55% of any weekly part-time earnings, including holiday pay

PTO, sick or vacation pay, but NOT if permanently separated

Severance, retention, or notice pay. Any other wage payment created because of job loss (delays benefits)

Workers’ Comp, Employer-contributed disability insurance

50% of Social Security, unless it began before UI base period

100% of pension or 401K contributed to by a base period employer, but NOT if subject to IRS early withdrawal penalty

A Quick Tour of the Employer Determinations and Issue Summary

Process

Online Self-Service System

Employer Home Page – Determinations/Issues link

Determinations and Issue Summary page View New Items > Respond or Raise An Issue > Appeal

Click on an SSN to see current items for that applicant that you should review or respond to.

Then all current items for the applicant will be displayed.

This applicant has just one current item (claim notice) because he is a new applicant who indicated that he was laid off due to a lack of work.

If he had indicated he quit or was fired, on leave, got severance pay, etc., there would also be a questionnaire link listed.

This is the Determination of Benefit Account page. Note the “Raise An Issue” button, and link to view some instructions.

Issue menu - select the issue you want to raise

Issue menu page - cont.

If the issue you want to raise is not on this list, or you have

questions, call Customer Service at the number listed. You can raise an issue at any time if not already decided:

Log in to your account > Determination and Issue Summary > Custom Search > applicant SSN or name > Determination of Benefit Account > click Raise an Issue button

Determinations and Issue Summary page Custom Search

Click on an SSN to see current items for that applicant that you should review or respond to.

Custom Search link: by Applicant, Item, or Issue Type Searching for an individual will show all current and past items and issues

for that individual. Searching by item or issue type will show all individuals with that item or

issue, but you can put in a date range.

When the employee was previously diagnosed or treated and did not make consistent efforts to control the illness. Probable misconduct: - repeated relapses or stopped going to AA/NA or refused treatment - or going to AA/NA but still drinking/using - or refused or failed drug/alcohol test Probably NOT misconduct: - first relapse after treatment, if following aftercare instructions - or diagnosed as chemically dependent AFTER being fired Possible misconduct: no call-no show because under the influence (How many missed shifts? How intoxicated? In detox?) Always misconduct: a criminal act, DUI

When is conduct caused by chemical dependency misconduct?

Quit and Layoff Notices - 30 Day Rule

Employee gave quit notice? fired within 30 days of intended quit date > eligible until quit date If fired more than 30 days out > it’s just a discharge, not a quit, and

eligible for up to 26 weeks If fired for misconduct > not eligible, it’s just a discharge, not a quit

Employer gave layoff notice?

If quit within 30 days of intended layoff date > eligible after layoff date If quit more than 30 days out (or date of layoff unknown) > it’s just a quit

and not eligible unless one of the 10 exceptions applies If given notice will be FIRED on future date and quit any number of days

early, it’s just a quit

What is an Appeal? Before any appeal: You get a Determination of Benefit Account (claim notice) You get a questionnaire if you are the last employer and it

was a quit or discharge, or you paid severance, etc. If you don’t get a questionnaire, and there is an issue

(quit, discharge, severance pay, relief of charges, etc.) then YOU raise the issue and complete its questionnaire.

You get a Determination of Eligibility (or Ineligibility). Then: You file an appeal if you disagree with the Determination

of Eligibility. It has 20-day appeal rights and instructions.

Appeal Hearings - First Level

Hearings are by telephone conference call. Conducted by an administrative law judge. Parties are requested to send all documents and

prior statements to UI and opposing party. Eyewitnesses may be important and should attend. Subpoena requests are taken during the hearing,

and the hearing will be continued to a later date if a request is granted.

The judge issues decision by mail, and online.

Appeals - Second Level Either party may submit a written Request for

Reconsideration within 20 days of judge’s decision. The request is reconsidered by the same judge. A request should present argument(s) why the decision

is wrong (i.e., evidence overlooked or not accepted in the first hearing, law misapplied, errors in facts or reasoning, etc.)

The judge can schedule another hearing to take new evidence or testimony, but only if a party shows a VERY good reason it was not provided at the first level hearing.

The judge issues final decision by mail, and online. Final decision can be appealed within 30 days to the

Minnesota Court of Appeals.