section 252 webinar
TRANSCRIPT
“Sec%on 252” How Recent Changes by the Federal Government on Unemployment Insurance Laws Will Impact Business
Jeffrey Mar%n
Unemployment Insurance Manager
G&A Partners
Overview
• Sec%on 252 • How it impacts UI claims processing • Employer par%cipa%on
POLL QUESTION
• What is your role in your organiza%on?
Sec%on 252: What is it?
• Sec%on 252 is a response to the growing problem of UI benefit overpayments to claimants.
• According to es%mates from USDOL, UI benefit overpayment, paid by states, under the regular state programs and federally funded extensions for the period: July 2011 to June 2012 was over $10.3 billion
What is an Overpayment
• When a claimant is filing for unemployment during a period when they are working.
• When a previous decision that awarded benefits is reversed upon appeal.
• Missing employers. • Misapplica%on of wages.
States with overpayment issues
• Pennsylvania: 22.77%
• New England: 23.87%
• Indiana: 32.34%
• Washington DC: 33.00%
Sec%on 252: The Details
• Mandatory Penalty Assessment on Fraud Claims: Requires states to impose 15% penalty on overpayment caused by claimant due to fraud
• Prohibi%on on Non-‐Charging Due to Employer Fault: Prohibits states from non-‐charging overpayments due to employer fault, if there is a paeern of failure to provide %mely and adequate informa%on to the state agency.
Sec%on 252: What is it?
• A state must not relive an employer of charges (non-‐charging) when the employer, or an agency of the employer, at minimum. • Is at fault for failing to respond %mely or adequately to a state agency request for informa%on rela%ng to a UI claim that was overpaid; and
• Has established a paeern of failing to respond %mely or adequately to state agency requests to UI claims.
• States establish the defini%on of a “paeern of failing to respond” %mely or adequately.
• States may impose stricter standards.
Request for separa-on
informa-on by State Agency.
Adjudica-on by State Deputy
Considera-on by a UI Hearing Officer
Regular Cycle of Claims Processing
Weeks Paid to CLMT
The point in which the claimant may receive UI benefits.
If the Hearing Officer reverses the decision, the claimant would have to repay the amount of benefits paid to them and the employers account has an abatement of charging for those weeks of benefits received.
Claimant is required to payback benefits
Sec%on 252: Relief of Non-‐Charging
Benefits already paid to the claimant prior to a UI hearing
The UI Hearing officers reverse a previous
decision by the deputy which earlier allowed
benefits
Claimant ceases to receive benefits for future weeks, however the employer’s SUTA account does not receive an abatement of charging for benefits of prior weeks.
Request for separa-on
informa-on by State Agency. Adjudica-on by
State Deputy
Considera-on by a UI Hearing Officer
Non-‐Relief of Benefit Charges
Weeks Paid to claimant
Future benefits from the employer
Claimant does not need to payback benefits.
$
• Limited enforcement procedures yet.
• The regula%ons are being drajed.
• Defini%on of “inadequate” and “paeern” is highly ambiguous.
• All Sec%on 252 determina%ons are appealable decision.
Sec%on 252: Enforcement
Defini%on of a Paeern
• 2 or 2% during a given period of %me. • Unless explicitly defined in law, the given
period of %me is likely going to be between computa%on dates.
• Some states consider 1 instance as a paeern.
POLL QUESTION
• Have you ever responded to an unemployment insurance claim that you did NOT want to protest the claim?
Defini%on of Inadequate
• DNP (Do not protest) • Canned Statements. • Adding addi%onal informa%on at the appeal level.
• Not returning pre-‐legal call by state depu%es.
• Observa%on by the Hearing Officer.
• Virginia $75 • California Ten Times WBA • Minnesota $500 • Maryland $25 • Vermont $100 • Connec%cut Enforcement Phase
Watch Out States!
• Cannot not include addi%onal documenta%on for the UI hearing that was not previously included in the ini%al claim response.
• Greater amount of communica%on on responses to State Agency at the ini%al stage.
• Ques%oning the appealing of decisions that were awarded to the claimant when the employers ini%al response was shoddy.
How it Impacts UI Claims Management at G&A
POLL QUESTION
• Do you normally aeend Unemployment Hearings?
• It will be enforced. • Flagging. • Federal government will provide grants to fund Sec%on 252 auditors.
• BAM direc%ves. • Great opportunity for a states to eliminate millions of dollars off the books in overpayments to claimants.
Enforcement: My Predic%on
• Stronger involvement in par%cipa%on on UI claims responses.
• Cannot ignore UI claims being filed. • Cannot make requests to allow for benefits.
Employer Par%cipa%on
Employer Par%cipa%on • Document termina%ons. • Have policies in wri%ng. • Incorporate and enforce internal policies. • Use progressive discipline measures.
HRCI Cer-fica-on Credits: "This webinar has been pre-‐cer%fied for 1 hour of general recer%fica%on credit toward PHR, SPHR and GPHR recer%fica%on through the HR Cer%fica%on Ins%tute. We will send out a confirma-on e-‐mail to all those that are confirmed as aOended with the program ID code to note on your HRCI recer-fica-on applica-on form.
The use of this seal is not an endorsement by the HR Cer%fica%on Ins%tute of the quality of the program. It means that this program has met the HR Cer%fica%on Ins%tute's criteria to be pre-‐approved for recer%fica%on credit."
QUESTIONS? G&A Partners
[email protected] (800) 253-‐8562
*This webinar has been recorded and will be posted on the G&A website by Friday