South Dakota Association of School Business Administrators April 29, 2010

2 Unemployment Insurance Program Goal Temporary benefit to unemployed workers Unemployed through no fault Attached to labor force, available for employment

3 Attachment to Labor Force Measured by base period wages Average: Minimum five months work in 12 month base period

Oct Nov Dec 2009 Jan Feb Mar 2009 Apr May Jun 2009 Jul Aug Sep 2009 Oct Nov Dec 2010 Jan Feb Mar Claim Filed Base Period Wages Not Used Base period changes every quarter. First four of last five completed quarters Eligibility requires earnings in two base period quarters Base Period

5 Last four completed quarters Eligibility remains the same, earnings in two quarters 2008 Oct Nov Dec 2009 Jan Feb Mar 2009 Apr May Jun 2009 Jul Aug Sep 2009 Oct Nov Dec 2010 Jan Feb Mar Claim Filed 1234 Alternative Base Period Base period changes every quarter. Alternative Base Period

6 Benefit Amounts Weekly benefit: Minimum $28 Maximum $309 Total benefit paid during benefit year: 1/3 total base-period earnings, up to 26 times weekly benefit. Maximum of 26 x $309 = $8,034

7 Additional Stimulus Benefits Additional $25 in weekly benefit payments from federal stimulus funding. Additional 34 week benefit extension from federal stimulus funding; 20 weeks, additional 14 weeks.

8 Work Separations and Claimant Eligibility Voluntarily Quit Claimant must establish “good cause” for quitting employment. Discharge Employer must establish work-connected misconduct.

9 Employer Process Notification of a claim. 15 day period to respond. Report separation pay. Quit or Discharge. Documentation – Not required but could support employer.

10 Employer Process UI Division may call for more information or clarification. Decision on eligibility. 15 day appeal period. Administrative Appeals Office in Pierre, Aberdeen first point of contact.

11 Serve “Waiting Week.” Must be able and available for work. Conduct an active search for work: Two job contacts a week. Register with the South Dakota Department of Labor. Willing to accept “Suitable Work.” Claimant Responsibilities

12 A claimant must be physically able to work in their usual occupation or other work for which the claimant is reasonably fitted. A claimant must be available for work the majority of the week. Able and Available For Work

13 Refusal of Suitable Work The Division will consider the following factors in determining suitable work: Risk involved: Prior earnings. Distance from residence. Prior experience and training. Local job market. Length of unemployment.

14 15 day appeal period. 7 day advance notice of hearing Attend the hearing - person with direct knowledge. Appeals

15 Administrative Law Judge (ALJ) Teleconference ALJ issues written decision Appeal to Secretary, Circuit Court Appeal Hearings

16 Billing Statement Quarterly Individuals paid, weeks, amounts

17 Financing Options Reimbursing – self-insured, billed for actual claims paid. Tax Paying – pay mandatory quarterly premium. Insure against no-fault claims.

18 General Eligibility Not paid in summer if contract or reasonable assurance or re-employment.

19 Substitute Teachers Wages used on claims. Eligibility? Week by week during school year.

20 UI Modernization ARRA legislation Option 1, $5.8 million Alternative Base Period Implemented 2009 Option 2, $11.7 million Part-time workers Additional training – $800,000 cost.

21 Don Kattke - Unemployment Insurance Director (605) Sharon Schnabel, Deputy UI Director (605) Mike Buske - Tax Administrator (605) DOL Staff Contacts

22 Gerry Davis - Benefits Administrator (605) James Marsh - Director of Labor and Management (605) Rebecca Stoltenburg - New Hire Reporting Manager (888) DOL Staff Contacts