UI Forum (UCS)
Fall 2008
Managing Unemployment Costs . . .Especially in today’s economy!
How ADP Can Help
Having ADP-UCS process your unemployment claims during a slowing economy can benefit you in more ways than just relieving the administrative burden of responding to the claim. While an unemployment claim may be the result of a work reduction (which is non-disqualifying), some states require employers to provide wage history (in addition to separation information) within a specified time period. Failure to do so may result in monetary penalty. UCS Claim Representatives are well-versed on the various state agency requirements and will ensure compliance for you.
There is also a risk of unemployment claims being filed by claimants indicating they were laid off when, in fact, the situation may have been a disqualifying voluntary resignation or termination. The U.S. Department of Labor estimates more than 9% of all benefit charges are in error. Being charged for these types of erroneous unemployment claims may result in an increased unemployment rate, which cuts directly into your profits. ADP can identify protestable claims and the supporting documentation needed for you to receive a favorable determination from our protest.
Additionally, with the services listed below, we effectively manage all of your unemployment insurance needs:
Pre-Termination Coaching and Counseling
UCS Client Service Representatives can help you make the right decisions prior to terminating an employee.
Unemployment Claims Administration
UCS Client Service Representatives are knowledgeable in state unemployment insurance laws and will prepare the claim response, thus eliminating the clerical burden.
Appeals and Hearings Representation
Win more unemployment hearings with highly experienced representation.
Benefit Charge Audits
Unemployment claim charges directly affect annual unemployment tax rate calculations. UCS will protest erroneous unemployment charges, which may assist with reducing your tax rate.
Tax Rate Notices
UCS will verify the components used in calculating your tax rate.
Employers need to protect themselves from frivolous unemployment claims during these more challenging economic times. In addition, employers need to remain focused on running their core business activities. ADP¬UCS takes away the burden, risk, and challenge of staying on top of the paperwork and legal requirements associated with processing unemployment claims.
For more information on how you can maximize the benefits of your service, visit our Web site and go to Tax Compliance Information & Resources > Unemployment Compensation.
The Importance of Information
Proper documentation is pivotal for success in unemployment claims management. Providing the complete details of a discharge, including information on policy violations and infractions, can mean the difference between a favorable or unfavorable ruling on your behalf. Take a look at the following case.
The Claim
After a large, multiple-location company discharged an employee, the subject’s personnel file was sent to the centralized Human Resources (HR) department. Unfortunately, the unemployment claim arrived fi rst. A company HR representative responded to the claim, without the benefit of supporting documentation from the claimant’s file, stating only that the reason for discharge was a policy violation. The employer received an unfavorable determination.
The Appeal
The company appealed the decision maintaining that the claimant was discharged because of a verbal altercation on the job and that the employer had a policy prohibiting such behavior. While a copy of the company policy was included with the appeal letter, the letter itself did not contain information about previous counseling sessions with the claimant for similar incidents, nor did it indicate that the claimant had been given a final written warning four months prior to discharge. Also, the appeal letter failed to mention that the employer had several witnesses to the fi nal incident and that the verbal altercation included racial epithets directed at a customer.
The Hearing
When the notice of a hearing arrived, the employer contacted ADP for assistance. ADP reviewed the issues, prepared the witnesses for testimony, and assembled the documentation as exhibits for the company’s defense. An ADP representative attended the hearing with the employer.
At the hearing, the full details of the case fi nally emerged. Two employees repeated statements the claimant made to them about the customer, and other company witnesses testified that the discharged employee had been counseled about his language and demeanor. Also, it was shown that the claimant knew the employer’s policy regarding acceptable language. Records of the previous counseling sessions, the company policy statements, and a statement signed by the claimant acknowledging receipt of the policy handbook were all submitted as exhibits.
Additionally, it was established that the employer had fully adhered to its policy of progressive disciplinary action before resorting to the termination.
The claimant had no defense to the testimony and the documentation that was presented.
The Decision
The Administrative Law Judge found in favor of the employer, concluding that the claimant had been involved in misconduct related to the job and that, at the time of this misconduct, he was aware that his employment was in jeopardy.
The Final Word
Always start with a good defense. Having complete and full documentation of events leading to a discharge, written proof of policy violations, and any available witness statements that are submitted when you first respond to a claim can save time and reduce the amount of work it takes to win a favorable decision.
Idaho
Due to increased costs and federal funding reductions, the Idaho Department of Labor has announced that they will no longer mail the quarterly Statement of Benefit Charges to employers beginning with the period ending September 30, 2008. Employers and their agents will only be able to view these statements online on the agency’s ECORE system.
Employers must access the ECORE system to set up an account before they can access their information or grant a third party online access. To service clients’ unemployment insurance accounts properly, employers must grant ADP¬UCS access to view their Statement of Benefi t Charges.
Visit the agency’s Web site at http://labor.idaho.gov/dnn/ idl/NewsResources/ECOREGuides/tabid/1990/Default. aspx to access the User Guide for step-by-step instructions on how to grant access to a third party. When prompted for the third party’s username, use “ADPUCS” (no spaces). Please contact your UCM client service representative with any questions.
The UI Forum is distributed with the understanding that the publisher is not engaged in rendering legal or accounting services. If legal, accounting, or other professional assistance is required, the service of an attorney or certified public accountant should be sought. This newsletter is published quarterly by Unemployment Compensation Management, a department of Unemployment Compensation Services. © 2008 Automatic Data Processing, Inc. T&FSHRD-131-033108
