What can an Employer Do to Control Unemployment Costs?
If you have elected to be a "contributory" employer,
Utah’s "benefit ratio" method of calculating unemployment rates
provides a unique opportunity for you to manage your unemployment tax costs
because your basic tax rate is determined by the benefits paid to your former
employees. If you have elected to be a reimbursable employer your liability is
determined by the unemployment benefits paid to your former employees. Whether
you are a contributory employer or reimbursable employer, it is to your
advantage to monitor these charges to ensure they are correct and to manage your
personnel practices to reduce employee turnover wherever possible.
To assist you in managing these costs, may we suggest that you
consider the following:
Screen applicants to be sure they are properly suited for
the work.
Have clear written statements of policy and rules
concerning employee conduct at work.
Monitor new employees’ progress carefully, especially
during their probationary period. An employer will be liable for benefit costs
of an employee who was separated because he was unable to perform the
necessary work and meet minimum job performance standards. Benefit costs will
increase proportionally to the length of time he was employed.
Keep accurate records of attendance, tardiness and all
warnings given.
Do not condone violations of rules. Be consistent in
taking disciplinary actions against employees who violate your work rules.
Be specific in providing separation explanations to the
Utah Department of Workforce Services. For example, report "claimant was
absent on May 2nd and May 3rd, and did not call in, and
was aware of company policy on reporting time off. By his failing to report
for work we were left shorthanded and had to find additional help to meet our
production goals on those days," rather than merely reporting
"absenteeism." Make sure you put down all the facts. Do not give
conclusions.
Carefully read and reply to all notices concerning
benefit claims, requests for information, etc. If, after reading the notices,
you do not understand what is needed, please contact the Department.
Mail all appeals within the appeal period provided by
law.
Attend all appeal hearings and present factual
information and evidence.
Make sure someone attends the hearing who has firsthand
knowledge of the reason the employee was separated.
Conduct exit interviews. Obtain a statement of the
reason for separation. If possible make adjustments or offer transfers.
Offer job openings to laid-off employees, if possible,
or contact other employers to help find work for them.. Report to the Utah
Department of Workforce Services any refusals to accept work.
If your business is temporarily shut down and other work
such as maintenance or inventory work is available, offer this work to current
employees who are not yet eligible to use vacation leave during the shutdown.
If they refuse any offer of work, please notify your local Utah Department of
Workforce Services office.
Report vacation, separation, retirement or pension
payments.