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UNEMPLOYMENT INSURANCE INTEGRITY

As of October 2013 the Trade Adjustment Assistance Extension Act of 2011 provides for a new statutory subsection
in FUTA . Under these new requirements, employers are expected to improve the quality of information provided
to state unemployment agencies at the front end of the UI claim process, rather than waiting until after the initial
determination is rendered to perfect the response . This new subsection requires state UI agencies to prohibit
relieving employers of benefit charges to their unemployment tax account when both of the following exist:
1. UI Benefits were improperly paid, because the employer or their agent was at fault for failing to
respond timely or adequately to the agency’s request for information relation to the unemployment
claim.
2. The employer has established a pattern of failing to respond timely or adequately to such requests.
Previously, employers made a choice between responding or not responding to unemployment claims, often
responding only if it was considered an improper claim . Moving forward, employers are required to respond to all
claims in order to remain in compliance with the new regulations and avoid financial penalties . We can no longer
think in terms of “protesting/not protesting” but rather “in compliance/not in compliance .” You must now respond
to ALL claims on time to remain compliant and avoid financial penalties .

Even if you are able to reverse an unfavorable determination at an unemployment hearing, the consequence of
not providing sufficient details in the initial stages of the claim could be loss of non-charging, which may increase
benefit charge costs to the restaurant .

POINTS TO REMEMBER

Documentation: THE KEY TO CONTROL

While always considered a “best practice,” with the UI Integrity Act in effect October 2013, it is more important
than ever to provide all details and supporting documentation in a timely manner to CaseBuilder when requested .
Failure to do so, could result in the denial of non-charging of employer’s accounts and/or additional monetary
penalties associated with the claim .

Documentation is the only reliable method of proof . Supervisors with details to the employee’s separation may
change or the circumstances, which led to the separation, may be forgotten . BE PROMPT! If you document the
separation you will have a permanent record of your organization’s position for future reference .

• Failure to follow the necessary steps PRIOR to separation may result in your company paying $10,000 .00
or more in benefits per claim .
• Keep accurate records of performance, warnings, and descriptions of incidents leading to separation . This
includes receiving a copy of the signed receipt acknowledging they have read the handbook .
• Be very specific on the PAF in regards to separation information . Include comments and details related to
the final incident . By keeping accurate records it will be quick and easy when responding to claims .
• As a manager or supervisor, you will be called upon to substantiate your decision(s) regarding an employee’s
separation from employment . DOCUMENTATION IS KEY .

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12 12 Revised February 2014