Friday, August 7, 2009

Unemployment Insurance - how does it affect the employer?

I worked for company A, was laid off, and started a UI claim. I find occasional work with company B (which happens to be out of state). In 2007 I have worked 1 week for B. For that week I wrote on my UI/EDD form that I worked for B for 1 week, but was continuing my claim. My claim only started in December 2006, so there is no question of it being expired.



The administrator at B wrote to me complaining that she had received paperwork from UI/EDD and she was concerned that this would raise her company%26#039;s UI premiums.



I want to reassure her that only company A%26#039;s rates could be affected by my claim, but I am not 100% sure if this is true. Could company B%26#039;s UI rates be increased by my actions?



Unemployment Insurance - how does it affect the employer?credit report





You are correct. Since company A was your last employer and the company that laid you off, they would pay the increase in premiums. However, if company B were also to lay you off, they may find that their premiums increase as well. As long as you continue working for them, they should see no increase.



Unemployment Insurance - how does it affect the employer? loan



Rules for determining UI eligibility vary by state, but in general a base period is used to calculate your monetary eligibility. In your case, if your claim was started in Dec 06 your base period would likely be 7/1/2005 though 6/30/2006 (the first four of last five completed quarters from the effective date of a claim). Any employer you had during this period would be subject to a rate increase due to your claim. Once you open a claim the base period is locked in for a specific period of time; in general, for one year. So, your current claim is probably good through Dec 07 and, regardless of the amount of action this claim, the only employers that should be affected would be those you worked for during the base period.



However, if you open a new claim in the future (after Dec 07) and a new base period is established, company B could then be subject to a rate increase.



It appears that the administrator at company B is not entirely familiar with how UI works, which is not uncommon based on my experience with UI. Nevertheless, she has a legitimate reason for being concerned. Your state is obligated to notify any current employer that you are filing for UI benefits to protect against UI fraud. Any wages you earn from company B could potentially offset any UI benefits you receive. Furthermore, the state would be concerned if company B was offering you reasonable full-time work that you chose to refuse.

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