This document discusses Section 252, a recent federal law aimed at reducing unemployment insurance benefit overpayments. Section 252 mandates penalties for fraud and prohibits states from not charging employers for overpayments due to the employer's fault, if there is a pattern of failing to provide timely and adequate information to state agencies. It also details how Section 252 changes the process of UI claims adjudication and relief of non-charging of employer accounts. Implementation of Section 252 is still in progress as states define terms like "inadequate" and "pattern" and draft regulations.

1. “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

2. Overview
• Sec%on
252
• How
it
impacts
UI
claims
processing
• Employer
par%cipa%on

3. POLL
QUESTION
• What
is
your
role
in
your
organiza%on?

4. 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

5. 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.

6. States
with
overpayment
issues
• Pennsylvania:
22.77%
• New
England:
23.87%
• Indiana:
32.34%
• Washington
DC:
33.00%

7. 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.

8. 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.

9. 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

10. 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.

11. 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.
$

12. • 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

13. 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.

14. POLL
QUESTION
• Have
you
ever
responded
to
an
unemployment
insurance
claim
that
you
did
NOT
want
to
protest
the
claim?

15. 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.

16. • Virginia
$75
• California
Ten
Times
WBA
• Minnesota
$500
• Maryland
$25
• Vermont
$100
• Connec%cut
Enforcement
Phase
Watch
Out
States!

17. • 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

18. POLL
QUESTION
• Do
you
normally
aeend
Unemployment
Hearings?

19. • 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

20. • 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

21. Employer
Par%cipa%on
• Document
termina%ons.
• Have
policies
in
wri%ng.
• Incorporate
and
enforce
internal
policies.
• Use
progressive
discipline
measures.

22. 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
info@gnapartners.com
(800)
253-­‐8562
*This webinar has been recorded and will be posted on the G&A website by Friday