| The latest numbers from the U.S. Department of | | | | affected. |
| Labor (DOL) show the unemployment rate | | | | But don’t get too excited yet. Simply stating |
| reaching 6.7% and rising as of November of this | | | | that the former employee should not receive |
| year. Many think that unemployment only affects | | | | benefits is not good enough. The unemployment |
| the unemployed. But have your really thought | | | | administration will ask for documentation. Actually, |
| about how it affects your organization and your | | | | they’ll want to see progressive |
| current employees? | | | | documentation. For instance, if John Doe is |
| Unemployment insurance replaces part of the | | | | terminated for poor attendance, you will need to |
| income you lose when you become unemployed. | | | | show that Mr. Doe was notified of his poor and |
| It is a benefit available to workers out of work | | | | unacceptable attendance record, (preferably in |
| through no fault of their own. Employees wishing | | | | written form), and that he was ultimately |
| to collect unemployment benefits need only | | | | terminated due to poor attendance. Simply |
| complete an application which serves as an | | | | terminating him on the first offense will not be |
| explanation to the Unemployment Administration | | | | enough to show that he was well aware that his |
| as to why they are no longer employed. Once | | | | actions were leading to his termination. However, |
| the application is received, a notice is sent to the | | | | if you can show that he was warned then |
| employer asking for verification of this application | | | | ultimately terminated despite the warning, you |
| (better known as the unemployment claim). | | | | may establish that John Doe lost his employment |
| Each employer pays into an account from which | | | | through his own doing and is therefore completely |
| these benefits are paid. The money the | | | | at fault for his loss of employment. |
| employers pay is called ‘unemployment | | | | Work with your HR representative to establish a |
| tax’. The rate at which employers pay into | | | | clear set of policies as well as a progressive |
| the account is determined by the amount of | | | | discipline standard. Furthermore, if you are taking |
| claims paid to former employees of the | | | | the time to speak with an employee about |
| respective company. In other words, the more | | | | unacceptable behavior, document it. This will make |
| claims that are paid to your former employees, | | | | it clear that you are serious about your policies |
| the more unemployment taxes you will pay. Your | | | | and will act as paper back-up when disputing |
| rate is reviewed on a regular basis and is adjusted | | | | future claims. |
| based on the number of claims charged against | | | | Appointing a PEO (Professional employer |
| your account. | | | | organization) will release you from all the liability of |
| So what does this mean to you and how can you | | | | your employees. They have their own team of |
| control your unemployment costs? Easy; | | | | professionals only to complying with regulations. |
| document, document and did I mention, | | | | They usually handle payroll services, regulation |
| document? When an unemployment claim is filed, | | | | compliance, human resources, and even employee |
| the employer is given the opportunity to dispute | | | | benefits. |
| the claim. If the employer can show that the | | | | With a little attention to documentation, you may |
| employee left voluntarily for little or no reason or | | | | save your organization hundreds if not thousands |
| if the employer can show that it had good cause | | | | of dollars per year in unworthy unemployment |
| to terminate the employee, the claim may be | | | | claims. |
| denied and the employer’s account is not | | | | |