Controlling Unemployment Costs

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2013 Webinar Series

Managing Unemployment Claim Costs

Thursday: January 17, 2013

Presented By: Chauncey Gainer & Pam Nading

Unemployment Claims Consultants

Simplifying business. Benefiting people.

Today’s Agenda

Ø  General Overview of Unemployment CompensaEon

Ø  Funding the Unemployment System

Ø  Eligibility condiEons

Ø  Types of Claims

Ø  CriEcal Document and Best PracEces

Ø  Special Provisions

Ø  Our Mutual Roles

Ø  QuesEons

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General Overview


WHAT IS UNEMPLOYMENT COMPENSATION?

Ø  State administered insurance benefit •  Created to provide temporary relief for individuals who lose their

employment through no fault of their own

Ø  Each State’s Laws govern their specific: •  Qualifying requirements •  Benefit levels •  Disqualifying provisions •  Tax structure •  Must conform to Federal Unemployment Tax Act (FUTA)

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Funding the UC System


How is UC Financed?

Ø  In most states it’s employer financed.

•  Through a state tax paid by the employer on the wages earned by their employees in that state. The tax is paid on the 1st dollars earned annually up to the individual state wage limit.

•  During periods of high unemployment, the Federal Government also provides Emergency Unemployment CompensaYon (EUC)

o  Recent legislaYon extended EUC benefits through 2013 o  EUC benefits are Yed to the Total Unemployment Rate (TUR) in each state.

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Eligibility CondiYons


Benefit Eligibility

Ø  Unemployed or parYally unemployed

Ø  Able to work (medically)

Ø  Available for suitable work

Ø  AcYvely seeking employment

Ø  Have sufficient prior earnings to qualify Ø  Have separated from their last employer for a work related reason

considered beyond their control.

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Benefit DisqualificaEon

Ø  Voluntarily resigning without good cause connected with the work

Ø  Discharge for work related misconduct •  Willful, negligent •  Not isolated •  Burden of proof -‐ Innocent unYl proven guilty

Ø  Disqualified unEl

•  Re-‐employed and has earned wages equal to 4-‐17 Ymes the WBA

•  Separated for non-‐disqualifying reason

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Types of Claims


Types of Claims

Ø  Non-‐Compensable Claims: misconduct, voluntary separaAons •  Rule or policy violaYon •  Abendance/tardiness •  InsubordinaYon •  ResignaYon

Ø  Compensable Claims: layoffs, poor performance •  ExpectaYons or quota not met •  Competency •  Lack of work •  ProbaYonary period

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Poor Performance Vs. Misconduct

Poor Performance Cannot do the job

•  Claimant has tried to the best of his/her ability to perform the duYes associated with the job.

•  Failure to adequately perform is not based on any willful acEon or neglect on the part of the claimant, but a lack of ability to do the job.

Misconduct Will not do the job

•  Claimant has not tried to the best of his/her ability to perform the duYes associated with the job.

•  Failure to adequately perform the job is due to some willful acYon or repeated neglect that causes or could cause the company harm.

•  Claimant is fully aware of the consequence.

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CriEcal Documents & Best PracEces


CriEcal Documents

Ø  Employee Handbook Acknowledgement

Ø  Performance Appraisal

Ø  Disciplinary AcYon Form

Ø  Witness Statements (signed)

Ø  Applicable porYon of the Employee Handbook

Ø  Employee Abendance Calendar

Ø  Exit Interview

Ø  ResignaYon Statement

Ø  NoYce of Employee SeparaYon – Send to AlphaStaff

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Best PracYces

Ø  Document behavior/performance that is not acceptable, the standard expected and consequence of neglect or failure.

Ø  Use objecEve language that describes acYons taken.

Ø  Terminate weak performers who show no or lible improvement as soon as possible. Closely monitor probaYon periods.

Ø  With cases involving misconduct, remember that unemployment eligibility is final incident driven. Terminate employees when the final incident was within their control.

Ø  Consistency/uniformity

Ø  Make great hires

Ø  Make great re-‐hires

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Special Provisions


Special Provisions

States with ProbaEon Periods

Ø  FL Employed 90 days or less

Ø  GA Total earnings under $3300

Ø  IL Employed 30 days or less

Ø  ME Employed 5 or fewer consecuYve weeks

Ø  NC Work less than 100 days

Ø  VA Employed 30 working days or 240 hours of employment

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Our Roles…

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What’s AlphaStaff’s Role?

AlphaStaff manages the claims process from start to finish

Ø  Claim Receipt

Ø  InvesYgaYon

Ø  Filing Claims with State

Ø  Inquiries/Fact Finding

Ø  Claims Tracking

Ø  Case EvaluaYon

Ø  RepresentaYon at Hearings*

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What’s Your Role?

ConYnue to partner with AlphaStaff

Ø  UYlize AlphaStaff’s pracYYoners

Ø  Timely respond to our inquiries

Ø  Follow Best PracYces

Ø  Provide AlphaStaff with separaYon details and supporYng evidence

•  By fax – (866) 365-‐1606

•  Email – [email protected] or

[email protected]

•  Through Infosource

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QuesYons


Contact Us ! •  .

Chauncey Gainer Email: [email protected] Ph: 954-‐267-‐1850 Pamela Nading Email: [email protected] Ph: 954-‐267-‐1847 Unemployment Claims Department Ph: 954-‐938-‐1385 Fax: 866-‐325-‐1825 [email protected] Copies of the presenta;on [email protected] 888-‐335-‐9545 (OpAon 8)


Upcoming AlphaStaff Webinar

Please mark your calendars !!!

Date: Wednesday, January 30, 2013 Topic: Healthcare Reform: The State of the Union

Date: Thursday, February 21, 2013

Topic: Title VII: Stories of Shock & Awe

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Thank you for joining us !!!

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Controlling Unemployment Costs

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Transcript of Controlling Unemployment Costs