Vermont UI Reform – Employer Seminars Available
The following notice was sent to all TALX clients.
Vermont Department of Labor mailed letters informing employers of their outreach efforts
to the business community about unemployment insurance (UI) program reforms enacted
earlier this year. Educational seminars are being conducted state-wide to help employers
understand the legislative changes.
Employers Need to Know
intent of the UI Reform legislation is to help Vermont reestablish and maintain long-term
Trust Fund solvency, while avoiding increased costs to the state and FUTA credit loss
of the changes in effect, unless otherwise noted, are as follows:
The maximum weekly unemployment benefit amount remains frozen at $425, as long as
the state continues to borrow funds in order to pay benefits.
The disqualification weeks have been increased from 12 to 15 for dismissals due to
A “gross misconduct” definition has been added to the law, which includes, but is
not limited to: theft, fraud, intoxication, intentional serious damage to property,
intentional infliction of personal injury, any conduct that constitutes a felony,
or repeated incidents (after written warning) of public use of profanity or unprovoked
insubordination. An individual discharged for gross misconduct will not have his/her
wages earned with the terminating employer used in the weekly benefit amount calculation.
For new claims filed on or after July 1, 2012, otherwise eligible individuals will
have to serve a one-week waiting period before benefits are paid. (This provision
will sunset in 2017 or when there is a positive balance in the Trust Fund, whichever
The taxable wage base will increase from $10,000 to $13,000 in 2011 and to $16,000
Effective when the Trust Fund is solvent – balance is greater than zero and loans
are repaid – the taxable wage base will index upward annually by overall wage growth.
The taxable wage base will decrease by $2,000 upon return to Tax Rate Schedule III
and by another $2,000 upon return to Tax Rate Schedule I. (Currently, Tax Rate Schedule
V is in effect.)
The penalty for filing untimely reports increases from $35 to $100. This includes
claim-related requests for separation and wage information, as well as employer quarterly
wage and contribution reports.
An employer’s account will remain chargeable for overpaid UI benefits, if the overpayment
resulted from the employer’s failure to respond to request forms to determine eligibility,
and UI benefits are later rescinded for whatever reason.
Employers who misclassify workers may be assessed a fine up to $5,000.
current schedule of employer seminars can be found by going to www.labor.state.vt.us and
then clicking on “UI Reform – 2010.” The Vermont Department of Labor has expressed
interest in offering additional or tailored presentations to businesses or associations.
Employers with questions or interest in a seminar about the UI changes may contact
Maria Beede at firstname.lastname@example.org or by calling (802) 828-4254.
This weblog is sponsored by TALX.
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