Common Question:
Am I required to respond to a notice of an unemployment benefits application (Request for Separation Information)?

Answer:

Yes, employers are required to provide a response within 10 days from the date of the notice. If you do not respond timely, you could be subject to fines and penalties. 


Common Question:

What information should I provide in response to the Request for Separation Information? 

Answer:
The NC Division of Employment Security (DES) makes a determination of whether an employee is eligible for benefits.  In order for DES to make an accurate decision and not pay out benefits when they are not warranted, you should always provide any relevant, accurate information regarding why an employee was separated. When an employee is granted benefits, this can impact your business’s unemployment tax rate for the following tax year.  

  • Provide key information such as, whether the employee resigned voluntarily, whether the employee was terminated for cause, a detailed description of the cause event(s), whether there was an established policy or practice that was violated (and whether it was violated more than once!), whether the employee was counseled or disciplined for a policy violation (even if it wasn’t the final issue that led to the separation), and whether the employee was provided with severance pay.

  • Provide a separate written summary of the events that led to the employee’s separation – the space provided by DES for this item is far too small! In most cases, you may need to attach or upload a written statement.

  • Provide copies of all relevant policies, disciplinary documents, severance agreements and resignation letters or emails (even if it’s just an informal note written on a scrap of paper!).

Common Client Question:
It feels like employees are always granted benefits – are there situations where benefits are denied?

Answer:
There is a common misconception that employees may be denied benefits if they are terminated “for cause”.  However, in most cases, employees remain eligible for benefits if they are they are terminated “for cause” related to poor performance. On the other hand, if an employee voluntarily resigns or is terminated “for cause” that amounts to misconduct under NC law, then they are not eligible for benefits.

  • Additionally, remember that 100 days of employment is an important date.  If an employee is terminated within the first 100 days of employment because they are unable to perform the job, then – even if DES grants benefits – you can request that the benefits be “non-charging” to the business’s tax account.  Essentially, this means that a grant of benefits will not be attached to the employer’s account and, thus, will not impact the business’s unemployment tax rate going forward.

Contact us if you have questions about providing an initial response, whether the appeal a DES determination or whether the for cause termination amounts to misconduct under NC law.