Unemployment Insurance: Unemployment insurance is a State of Illinois-operated insurance program designed to partially compensate eligible persons for lost wages when the person is out of work. Like fire, accident, health and other types of insurance, it is for an emergency: when a person is temporarily or permanently out of a job or if the person works less than full-time because of lack of work. It attempts to ensure that, if the person meets the requirements of the law, he/she will have some income while looking for a job, or up to a maximum of 26 weeks. Unemployment insurance, however, cannot and does not protect persons against wage losses due to illness or by choice.

Unemployment insurance should not be confused with "Social Security" which is a federal program to protect employees and their dependents against loss of earnings upon retirement, permanent disability or death. Employees partially pay for Social Security through payroll deductions. Unlike Social Security, employees do not pay any part of their wages, either directly or through payroll deductions, for unemployment insurance purposes in Illinois. The funds necessary to pay unemployment insurance benefits are collected as taxes from employers.

Chargeable Employer: The "chargeable employer" is the employer whose account will fund the unemployment compensation benefits for eligible employees

• The Agency becomes chargeable when the employee works for 30 working days in the past 18 months. The 30 days does not need to be consecutive.
• The Agency becomes chargeable when the employee was denied unemployment benefits prior to working for the Agency, and the Agency paid the employee his/her weekly benefit amount in each of four weeks.
• The employee had a full time job elsewhere and worked for the Agency part time. If the Agency increases the employee’s work hours, after the employee has lost his full time job and the employee earns over his/her weekly benefit amount, the Agency will then become the chargeable employer.

Method of Payment of Unemployment Costs:

• Governmental Agencies have two payment options for unemployment costs.
  • Taxing Method: The Agency will pay a payroll tax. There is a minimum payment and costs are capped at the maximum rate, these rates will vary each year. For calendar year 2003 the minimum rate is .6% and the maximum rate is 7.2%. The taxes are paid on the first $9,000. in wages for each employee. Cost will range from the minimum cost of $54.00 to the maximum cost of $648.00 per employee who earns $9,000.00.
  • Reimbursing Method: The Agency will reimburse the State Unemployment Agency only when benefits are paid to a past employee. There are no limits on what an Agency can be charged.

DISQUALIFICATIONS: EMPLOYEES WILL BE INELIGIBLE FOR BENEFITS UNDER THE FOLLOWING PROVISIONS

Voluntary Leaving (Section 601):
An individual shall be ineligible for benefits for the week in which he/she has left work voluntarily without good cause attributable to the employing unit and, thereafter, until he/she has become reemployed and has had earnings equal to or in excess of his/her weekly benefit amount in each of four calendar weeks.

Discharge for Misconduct (Section 602):
An individual shall be ineligible for benefits for the week in which he/she has been discharged for misconduct connected with his/her work and, thereafter, until he/she has become reemployed and has had earnings equal to or in excess of his/her weekly benefit amount in each of four calendar weeks.

Refusal of Work (Section 603):
An individual shall be ineligible for benefits for the week in which he/she has failed, without good cause, either to apply for available, suitable work when so directed by the employment office or the Director, or to accept suitable work when offered by the employment office or an employing unit, or to return to his customary self-employment (if any) when so directed by the employment office or the Director. Such ineligibility shall continue for the week in which such failure occurred and, thereafter, until he/she has become reemployed and has had earnings equal to or in excess of his/her weekly benefit amount in each of four calendar weeks.

ESTABLISHING DISQUALIFYING EVENTS

Discharge for Misconduct: The following must be established to deny benefits.

• The FINAL INCIDENT warranted a DELIBERATE AND WILLFUL VIOLATION of a known Employer policy.
• Warnings, suspensions, or termination must take place immediately after the incident. To act immediately, we suggest you suspend the Employee pending an investigation. All suspensions must be in writing and have a beginning and ending date.
• Suspensions are usually two to three working days.
• Explain and submit a copy of the policy or rule that was violated.
• The FINAL INCIDENT affected the Individual’s behavior at work.
• What harm or potential harm did the Employer or Employees suffer.
• Submit copies of Employer warning policy and prior warnings (SEE: Sample Employee Warning Notice).

Attendance Issues:

• Issue written warnings for violation of attendance policy (SEE: Sample Employee Warning Notice).
• On the final written warning for attendance specify that the employee must provide documentation, upon returning to work, to verify any further absence, tardiness or leaving early. Failure to provide this document could result in termination.
• Illinois Unemployment Law will only deny benefits if the employee is discharged for violation of attendance issues that the employee has control over such as:
  • Not calling and reporting an absence or tardiness on time or prior to the start of the work shift
  • Failure to call the proper individual to report an absence or tardiness
  • Failure to report or call for work
  • Failure to provide documentation required by company policy or prior warning.

Leave of absence:

• Have the employee complete a leave of absence form with beginning and ending dates (SEE: Sample Request for Leave of Absence).
• Require medical document to approve any leaves for medical issues.
• If the leave is for the employee’s medical issue, require a medical release prior to letting the employee return to work.
• Extensions to the leave may be available if a written request is made prior to the expiration of the initial leave. Also require updated medical documents for any medical issues.
• Indicate on the leave form that if the employee does not return as scheduled they will be listed as a voluntary quit.

Voluntary Quit:

• When an employee voluntarily resigns, the Employer should request a voluntary resignation form be completed (SEE: Sample Voluntary Resignation Form).
• This form should be completed at the time of the verbal resignation.
• If a voluntary quit is attributable to the employer, unemployment benefits will be paid.
• If the voluntary quit is not attributable to the employer, unemployment benefits will be denied.
• If an individual voluntarily quits per medical advice, and a medical statement is given to the employer; benefits will be paid once the medical situation is resolved. This is a pooled cost; the employer will be removed as chargeable.

Documentation of Warnings, Suspensions and Terminations Should Include the Following Information:

• List the violation of the rule or policy. Do not use general statements such as insubordination, attitude, poor work, or lack of performance.
• Time and date of the violation.
• State facts of violation. Do not make general statements, personal comments or bring in additional issues.
• Document Employee’s reason for the rule or policy violation.
• Give the Employee an opportunity to read, sign, and make comments on the document.
• If the Employee refuses to read, sign and make comments, have a witness sign the form that the Employee refused to sign the form.

CONSIDERATIONS IN MANAGING SEASONAL EMPLOYMENT

Summer Seasonal Workers (Students and teachers):

• Advertise for high school, college students and teachers looking for jobs for the period June through August.
• Question the individual on why they only want summer work and what will they be doing in the fall.
• Inform the employee they will need to give the Agency a two week notice prior to leaving in August.
• Have the individual fill out the availability form as part of the application process (SEE: Sample Generic Availability Agreement).

Seasonal Workers (8 to 10 month jobs):

• Prepare job descriptions including duties for seasonal jobs plus additional janitorial and miscellaneous duties for employee to do when the seasonal job ends.
• Hire a limited number of individuals to work March - June and September - November. Try to hire college, high school students, and teachers for the summer months.
• Hire senior citizens to help in spring and fall.
• Do not work overtime as this will increase the weekly benefit amount and increase the amount charged to the Agency.
• Try to extend the weeks worked by working 28 to 32 hours a week in the beginning of the season and at the end of the season.
• Check with other departments at the Agency to determine if the employees could be working part time doing janitorial or miscellaneous duties.
• Prior to closing for the season:
  • Have the employees fill out forms indicating if they are available for work during the off season (SEE: Sample Availability for Maintenance Work beyond Close of Facility).
  • Have the employees indicate if they are going to be out of town or unavailable for work any week during the off season.
  • Get phone numbers and addresses to contact the employee for work during the off season.

SOURCES:

Unemployment Consultants, Inc.
55 South Vail, Suite 1102
Arlington Heights, Il 60005

Phone: 1-847-670-0590; Fax: 1-847-670-0596; Email: uctaxes@aol.com
Attn: Carol Gabrielsen or Gregory Gabrielsen