By / Karen Forner • Founder and Partner, Employer Solutions Law
Our state’s Unemployment Insurance Trust Fund has been almost cut in half in the last six months, falling from $4.7 billion in March to $2.4 billion on August 22. After paying unemployment benefits to so many laid-off workers and getting hit by nearly $650,000,000 in fraudulent claims, the forecast is grim.
To cover our state’s unemployment benefits, premiums on employers could rise to an average of $936 per worker. Previously, the 2020 expected figure was $317, one-third of the new projection. Employers who have had more layoffs could see an even higher per-employee increase.
With the growth of unemployment and the expectation of it continuing to increase, premiums are projected to triple by 2022 and employers are searching for ways to limit their costs.
What can employers do to control costs? Employers should consider contesting claims that may be ineligible or fraudulent. A few examples are an employee who quit, was fired for disqualifying misconduct, or refused a valid offer to return to work. Employers should know that each awarded claim can affect their unemployment insurance premiums for four years, and focusing on fighting improper claims would limit some of those costs.
While an employee quitting usually makes the employee ineligible for benefits, the Employment Security Department outlines how employees can be eligible for benefits if they quit for “good cause” reasons as follows:
- You quit to take another job.
- You became sick or disabled, or a member of your family became sick, disabled, or died, and it was necessary for you to quit work.
- You moved to be with your spouse or domestic partner whose job is outside your labor market area.
- You needed to protect yourself or immediate family members from domestic violence or stalking.
- Your employer reduced your usual pay or hours of work by 25 percent or more.
- Your employer changed the location of your job so your commute is longer or harder.
- You told your employer about a safety problem at work, and your employer did not fix the problem quickly.
- You told your employer about an illegal activity at work, and your employer did not stop the activity quickly.
- Your employer changed your usual work, and the work now goes against your religious or moral beliefs.
- You entered approved apprenticeship training.
- You started approved training under the Trade Act.
- You worked full-time and part-time jobs at the same time, and you quit the part-time job—and then were later laid off from the full-time job.
The Employment Security Department outlines when employees are likely eligible for benefits for being laid off as follows:
- Generally, we treat your job loss as a lay-off if your employer is not replacing you, and you’ll qualify for unemployment benefits if you meet all of the eligibility criteria.
- If your employer is replacing you, we generally will treat you as being fired.
Examples of lay-offs
- Your employer has no work available
- Your assignment ended
- Your employer went out of business
- Your position was eliminated
- You’re required to participate in temporary classroom apprenticeship training
- You’re a seasonal employee and the season ended
- Your employer temporarily shut down for reasons such as weather, materials delay, natural disaster, or temporary maintenance closure
- The Employment Security Department outlines when employees are likely eligible or not eligible for benefits for being fired as follows.
Firing
If you were fired through no fault of your own, for example, because you did not have the skills to do the job, you may be eligible for unemployment benefits. If the Employment Security Department decides you were fired or suspended for misconduct or gross misconduct, you will not qualify for unemployment benefits.
Misconduct examples include:
- •
Deliberate or wanton disregard for your employer or a fellow employee, such as:- Insubordination
- Repeated inexcusable tardiness following warning
- Dishonesty related to employment
- Repeated and inexcusable absences
- Violating the law or deliberate acts that provoke violence or illegal actions, or violating a collective bargaining agreement
- Violating a company rule
- Deliberately violating or disregarding standards of behavior that your employer has a right to expect.
- Carelessness or negligence that causes, or will likely cause, serious bodily harm to your employer or fellow employees.
- Carelessness or negligence that is so bad or happens so often that it shows an intentional or substantial disregard for your employer.
Gross misconduct examples
- A criminal act in connection with your work for which you have been convicted in a criminal court or have admitted committing.
- Conduct connected with your work that demonstrates a flagrant and wanton disregard for your employer or a fellow employee.
If employers are going to challenge workers’ compensation claims, they should be well prepared with witnesses and documents to make the case for denial of benefits with the very first written response to the Employment Security Department and any subsequent hearing. Employers should consider legal advice and/or representation in challenging questionable claims. ■
Erin joined Employer Solutions Law in January of 2018 as an Associate Attorney. She brings with her a wide breadth of experience in commercial litigation, business law, and bankruptcy law. Because of her experience working in and with family owned businesses and closely held businesses, she understands the need to ensure that any recommended course of action must be both a good business decision as well as a sound legal strategy.
