CCC has always recommended providing full and complete responses at the initial claim level. Our goal has always been to obtain a denial at the initial claim level to avoid having to attend an unemployment hearing which is both costly and time consuming. In 2011 the consequences for failing to provide a full and complete response  became much greater to employers, with the passage of UI Integrity legislation. While for several years, this legislation was virtually ignored, toward the end of 2015 and into 2016 we have seen state unemployment agencies beginning issue determinations with penalties for what they consider untimely or inadequate responses.

Currently, only a handful of states such as  Michigan and North Carolina are issuing Timeliness/Adequacy Determinations, as we move into 2016 and beyond, employers should anticipate that all states will begin monitoring and issuing these decisions which can have a negative affect on an employer’s tax rate.  While CCC has issued several UI Integrity updates notifying employers of the changes that are occurring, we feel that it is necessary to review the background of the UI Integrity legislation and the potential affect on employers’ unemployment tax rates to insure that employers understand the need for 100% compliance to responding to all unemployment claims with timely and complete responses.

What is UI Integrity Legislation?

It is the Trade Adjustment Assistance Extension Act of 2011 (PL 112-40), specifically section 252 which requires that the state unemployment agency can no longer remove benefit charges from your account if:

  1. The overpayment was caused by the employers’ failure to provide timely or adequate information in response to a request related to benefits, and
  2. The employer has established a pattern of failing to respond.

How will this affect my organization moving forward?

  1. If an initial claim is allowed because an employer did not respond timely or provide all relevant information, all benefits received by the claimant will be charged to the employer’s unemployment tax account and the employer will not be eligible for relief of benefit charges (noncharging)
  2. Other penalties as determined by each state unemployment agency.
  3. If a pattern is created, your account could not be eligible for relief of benefit charges for the entire year.

Guidelines for avoiding penalties:

PatternDefined2016

 

 

Penalties2016


Contact CCC to see how we can save your organization time and money.
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