Is your reasonable assurance policy working to reduce your unemployment costs?

As an educational institution, the greatest opportunity for reducing payments of unemployment compensation benefits is available when Reasonable Assurance of employment is understood and properly utilized.

job-educationTypically,  Reasonable Assurance is available only to educational institutions. There are some limited states that do allow vendors of an educational institution to make benefit of the legislation. All employees of an educational institution are covered by the reasonable assurance provisions as they are defined in each state.

It is important to note that reasonable assurance is not an absolute guarantee of employment. While each state unemployment agency has different specifics within their reasonable assurance definition; in most states, reasonable assurance is a bona fide offer of employment for the next academic term or year.  Although agencies also vary on the definition of bona fide, typically, reasonable assurance exists when an employer has expressed its intention to employ a claimant and will make a good faith effort to do so.

Recently one of CCC’s UI hearing coordinators noticed one of our university clients was losing their reasonable assurance claims and offered our assistance.  The CCC account team, along with our in-house legal expert, met with the client to offer our suggestions.  We reviewed the state law in their jurisdiction, conducted a study of the client’s recent cases, and compared these decisions to current appeal board precedent decisions.

We concluded,  that although the client had a policy in place,  it was not aligned properly with the interpretation of state unemployment law.   The problem the client had was they were putting too much emphasis on their employee’s action or inaction accepting or denying the employment offer.  The appeal board precedent decision and case study decisions indicate, “the assurance is determined by the actions of the employer and continues until the actions of the employer establish to the contrary.”  CCC made suggestions on how to bring the policy more in line with the state statute, and the employer has chosen to implement those changes effective immediately.

CCC is already noting an improvement in the outcomes for this client.  I will update this blog as hard numbers for improvement are more available.   If you are a current CCC educational institution client or prospective one and you would like CCC to review your policy we would be happy to do so.  Please contact your CCC Account Executive.


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