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How Does Unemployment Compensation Work?

How Does Unemployment Compensation Work?

July 7, 2022by People First0


Unemployment is federally mandated, but state administered. What does that mean?

Each state’s unemployment is handled differently. It is important for employers to know their state’s rules and how unemployment works. If an employer is opening their business up into a new state, they must register with that state and follow their guidelines. Rates also vary from state to state and are based on utilization.

Individuals are eligible for unemployment if they are ready, willing and able to work but the employer no longer needs them. If an employee quits or is terminated for misconduct, they are not eligible. It is so important that employers document the reason for each person’s termination so that they are prepared for responding to state unemployment claims. 

If an employer is charged with a claim, their rates could increase.

If you would like to learn more about this and other HR matters, reach out to a Human Resource Professional.

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