Managing Unemployment Insurance Costs for School Districts Presented by DeGroot Management Services 2017

Agenda History of Unemployment Insurance Monetary Qualifications/Eligibility Reasonable assurance Types of Separations Voluntary Discharge NO Misconduct v. Discharge Misconduct Elements of Misconduct Hearings and Appeals Questions

History of Unemployment First instituted in the United Kingdom in 1911 by 1921 over two million were collecting as a result of economic hardships. In Canada employees pay 1.78% of earnings into the system. In US it is an employer funded system. In the US Unemployment Insurance started in Wisconsin in 1932. Now all 50 states plus DC, Puerto Rico and the Virgin Islands have adopted UI.

History of Unemployment Unemployment is a federal state program jointly financed through federal and state employer taxes. In most states, employees do not pay for Unemployment Insurance benefits, however, money received is classified as a social welfare benefit and included in the taxpayers’ gross income. Only three states (AK, NJ, and PA) collect taxes from employees under certain conditions.

History of Unemployment The original intent of Unemployment Insurance was to provide temporary benefits to people: Out of work through no fault of their own Who were ready, willing, and able to work

Monetary Qualifications An unemployed worker can qualify for benefits only if the individual has worked in covered employment and earned a minimum amount of wages in the base period. The claimant’s base period is used to determine the claimant’s weekly benefit rate. It includes all wages from all employers in the specified period determined by the State.

Eligibility Be totally or partially unemployed Be able to work and available for work and actively seeking work, and be registered for work searches with the State. Have the necessary wage credits for work in covered employment during the base period

Reasonable assurance Benefits are not payable for services for an educational institution during the period between academic years, when there is a contract or a reasonable assurance that the individual will perform services in the next academic term. “Reasonable assurance” means a written or verbal agreement, an agreement between an employer and a worker understood through tradition within the occupation, or an agreement defined in an employer’s policy. Some states consider written, verbal or implied understanding.

Reasonable assurance Benefits are not payable based on services during an established and customary vacation period or holiday recess if the individual performs any services in the period immediately before the vacation period or holiday recess and there is a reasonable assurance that the individual will perform any service in the period immediately after the vacation period or holiday recess.

Voluntary Separation Voluntary This is an action initiated by the employee. Can be with or without good cause. The burden of proof is on the claimant to show they quit with good cause. Some examples of good cause: For reasons attributable to the employer (must take reasonable steps to preserve job Illness or injury or illness or injury of child/spouse

Voluntary Separation Supervisors should always attempt to: Get a written letter of resignation stating the reason for the resignation. Be able to show continuing work was available. Conduct a short exit interview whenever possible.

Discharge No Misconduct This is an action initiated by the employer and in most cases the employee will collect Unemployment Insurance Benefits. Two types of Discharge No Misconduct Lack of work (temporary or permanent) Poor Job Performance

Discharge No Misconduct Poor Performance True, poor job performance means the employee was not able, qualified, or capable of doing the job. (“the wrong person for the job”). There is a very big difference between “poor job performance” and a refusal to follow rules and/or policies and procedures.

Discharge Misconduct This is an action initiated by the employer, for cause. The “burden of proof” lies totally with the employer to prove misconduct existed. The Key to the employer prevailing in Misconduct separation is DOCUMENTATION.

Reasons for Misconduct Discharges Failure to follow instructions or work rules Attendance Absenteeism Tardiness Insubordination Dishonesty Gross Misconduct (Theft, Workplace Violence)

Supporting documentation The employer must always be prepared to support any separation with documentation. This includes but not limited to: Written warnings Time sheets/schedules Policies & Acknowledgements Written statements Falsified Documents

Elements of Misconduct Rule Any reasonable policies or procedures that the employer has communicated through postings, handbooks, or verbal instructions. Written policies work best as they provide the best documentation. THE EMPLOYER MUST SHOW THAT THE EMPLOYEE SIGNED FOR THE EMPLOYEE HANDBOOK WHICH CONTAINED A SPECIFIC POLICY WHICH WAS VIOLATED Verbal Warning Verbal notification that an employee’s actions are not acceptable and that continued similar actions will not be tolerated. The employee’s job is in jeopardy. The employer must site the specific policy which was violated.

Elements of Misconduct Final Warning Always written, tells the employee that his actions have placed his/her job in jeopardy. This is the last chance before separation results. The employer must site the specific policy which was violated. Final Incident That action which causes the employer to terminate an employee. All misconduct separations must have a final incident!

Elements of Misconduct Termination The discharge of an employee for a series of related events. At any stage, the employer should always attempt to obtain an explanation from the employee After the separation has occurred, the supervisor should always complete an employee separation form. This form should be placed in the employee’s personnel file.

Required Elements in a Warning Name of the employee (do not include SS#) If progressive discipline is used, the number or warning issued. Indicate if it is the first, second, or third warning and if it is a verbal or written. Record the date. The Facts Only the facts, not opinions or feelings and do not draw conclusions.

Considerations What rule or policy was violated? What is the next step? a. Warning, suspension? b. Indicate the job IS in jeopardy. (not could or may) Agree or disagree? a. Allow the employee to respond. Sign and Date. a. If the employee refuses to sign, write on the warning “refused to sign”.

Mistakes Employers Make Never use the word Attitude. Never use the words “Poor Performance” instead of misconduct and the actual facts surrounding the corrective action. Address the employee immediately after the incident and warn as early as possible.

Mistakes Employers Make Double check for correct information. Dates, times, or incidents. If any information is incorrect, the claimant may put doubt in the adjudicators mind about employer credibility. Do not use the words “Poor Performance”, “Poor Attendance”, or “Attitude”. Do not give opinions or feelings, just the facts. The employer does not follow the corrective discipline steps, as written in the employee handbook.

Mistakes Employers Make The employer gives the employee another chance without acknowledging the current incident. Sometimes too many warnings are issued or too many incidents are outlined in the termination or warning notice. The employer terminates the employee without confronting the claimant about the final incident. The employer terminates the employee without investigating the reasons given by the employee in the final incident.

Hearings and Appeals Requesting a hearing How To Prepare Hearing Rules and Procedures Documents What Happens if you Cannot Attend Appeals

Requesting A Hearing Must be submitted within the required number of days from mailing date of the initial determination. (varies by state) Appeal must be written and state why you are objecting to the claimant being awarded benefits. Should contain the specific final incident, any previous warnings and any policy/procedure that was violated.

How To Prepare Determine who should be the witnesses & who should be the representative. Primary witness must have first hand knowledge of the final incident that led to separation Gather all pertinent documents & review the hearing file Know First & Last Day Worked/ Position/Title/Rate of Pay How did their employment come to an end? Send all parties copies of anything you may want to have admitted to the record. In-person – bring copies Typical hearing : 30 minutes to 1 hour

How to Prepare - Witnesses It is very important to your case to have first hand witnesses to the final incident available to testify at the hearing. Hearsay evidence is admissible, but not given greater weight than first hand testimony, and you can’t cross examine a document! Could get a negative inference from the Hearing Officer without it.

Hearing Rules & Procedures Opening Statement by Hearing Officer-reviews procedure. The hearing is recorded. All testimony must be relevant to the issue before the Hearing Officer. Witnesses may be sequestered. Opportunity to question witnesses limited to the issue. No leading questions during direct, only during cross. Start with who, what, when, why, and where Opportunity to cross examine claimant and their witnesses. During cross examination you are not allowed to testify or argue with the claimant

Hearing Rules & Procedures Some states allow each party to make a “closing statement” – not a time to reargue the facts, just sum up why the Hearing Officer should rule in your favor. The Hearing Officer will then “close” the hearing. Once the hearing is closed, the Hearing Officer can have no further discussions with either party. You will receive a written decision and either party may appeal the decision.

If You Cannot Attend No matter which party requested the hearing, it is very important that you attend the first scheduled hearing date. If you cannot attend a hearing, notify the Hearing Officer as soon as possible to request a postponement and explain why you need one. If a party requests a hearing and fails to appear, the initial determination will be adopted by the Hearing Officer by default. Be prepared to show good cause as to why you did not appear for the originally scheduled hearing if you are granted a postponement.

After The Hearing The Hearing Officer decides how the Law will apply to the facts presented by the parties Many times they will determine who they believed testified more credibly If you won …… CONGRATULATIONS! If you lost, you have the right to appeal!

Appealing File the Appeal timely Request a copy of the Hearing transcript Your Appeal must be written No new evidence or testimony is allowed Your argument must be based upon the record from the Hearing and why you feel the Law was not applied correctly

Remember Documentation is the key to stopping unnecessary Unemployment Insurance claims and charges. Documentation can also provide the employer with the necessary evidence to defend themselves against other actions by past, as well as current, employees. Prepare for your hearing in advance, make sure you have a clear timeline of events and have all necessary witnesses and documents.

Questions?

THANK YOU!! Thank you for attending! JoLynn Haresign, SHRM-CP Client Relationship Manager DeGroot Management Services, Inc. jharesign@dmsforui.com 1-800-295-6666