Employers Must Respond to all Unemployment Claims or Face Penalties: No Good Deed Goes Unpunished

Confirming that no good deed goes unpunished, Florida law now requires employers to respond to all unemployment claims or face a penalty. All employers are subject to this penalty, even if the employer does not contest the claim or wants the employee to receive benefits during their job search.

In 2011 Congress passed the Unemployment Insurance Integrity Act, requiring states to revise their own unemployment statutes to curtail the estimated billions of dollars in unemployment overpayments made to ineligible claimants. However, a report by the U.S. Department of Labor estimates that, in Florida, only 0.48 percent of these overpayments are attributable to employers, while 50.42 percent of these overpayments are attributable to claimants and 9.37percent of overpayments are attributable to state agencies.

Following Congress’ mandate, Florida law now provides for a 15% penalty on individuals fraudulently collecting reemployment assistance benefits, but also penalizes employers who do not timely respond to claim notices or requests for information. All employers must respond to a notice of unemployment claim within 20 days after the mailing date of the notice or, in lieu of mailing, within 20 days after the delivery of the notice. If the employer or its agent fail to timely or adequately respond to a notice of claim or request for information, the employer’s account will be taxed for benefits paid that might otherwise not be taxed to the employer’s account.

Only time will tell if the amended unemployment insurance law effectively lessens unemployment overpayments. In the meantime, employers should timely respond adequately to all notices of claim or requests for information to avoid potential penalties. Also, employers should no longer promise not to oppose a terminated employee’s claim for unemployment benefits.