Whenever an employee terminates for a reason that would potentially disqualify him/her from receiving UI benefits, such as a discharge for misconduct, a quit without good cause connected with the work, or a labor dispute, it is important that the employer completes a separation notice within three days after the date on which the separation from service occurs, or three days after the worker’s separation from employment. Failure to do so can negatively impact your UI tax rate.
We would like to remind our Louisiana clients to keep in mind the laws enforced by Senate Bill 676 (attached) back in 2012, which state that employers will not be relieved from UI benefit charges when a former employee has satisfied a disqualification period and begun drawing UI benefits unless all of the following have been done:
- The employer has filed a timely Form LWC 77, Separation Notice Alleging Disqualification (new requirement),
- The employer has filed a timely response to a Notice of Claim Filed or a Notice to Base Period Employer, and
- The separation of employment is determined to be under disqualifying conditions.
The completed Form LWC 77 must contain the date of separation, a full explanation of the reason for separation, and information about any payments made upon separation, such as severance pay or accrued vacation pay.
Note the following example: One of your workers voluntarily quits to go to work for Employer B. Several months later Employer B lays off the worker, who then files an unemployment claim and is found eligible for benefits. You will not be relieved from benefit charges unless you have complied with the Form LWC 77 requirements.
Another cause for concern relates to your ability to appeal an adverse claim determination and request a hearing. Failure to submit a notice within the specified time limits may forfeit your right to appeal. Although Senate Bill 676 does not address the loss of appeal rights, it appears that the Commission may invoke another section of the law (Section 1625.1) which states in part: “If an employer fails to provide information in a timely manner without good cause, the employer shall be deemed to have abandoned its appeal rights . . . . “
To begin the process of filling out this vital form, click here and enter your Employer Account Number:
If you are unsure of your Louisiana state unemployment account number or have other questions, contact: Mike Parker at 615-242-8246, email@example.com or your T & C claim representative.