Explore Ways to Save

1. Explore Ways to Save

2. How Does Unemployment Work?

3. UI Claims Process • Claim filed at local unemployment insurance office by employee • Claim notice generated to the employer • Verbal and written communication with the local office adjudicator by Cambridge • Decisions issued to both parties by the local office adjudicator on relevant issues Claim process ends unless losing party appeals

4. UI Claims Processcont’d • Appeal filed • Reconsideration by adjudicator or hearing scheduled • Unemployment hearing at which testimony is presented on the issue appealed • Decision sent by mail to both parties Claims process ends unless losing party appeals

5. UI Claims Processcont’d • Appeal filed • Board of Review evaluates hearing transcript • Decision issued – end of the administrative process • Further appeal to circuit court and higher can be initiated by the claimant or employer’s legal counsel. • Charge protesting and auditing of charges during and after the claims process.

6. Illinois Chargeable Employers • The last 30 day employer will be the chargeable employer on a new claim • Employer could be charged and not be the last 30 day employer

7. Voluntary Quit • Benefits May Not Be Allowed(Protestable) • General job dissatisfaction due to: • Lack of advancement • Low wages • Travel time • Personal reasons • Marriage • Relocating out of town • Another job • Pregnancy (no leave of absence requested) • Quitting without trying to remedy the situation; even if job conditions are unsuitable.

8. Voluntary Quitcont’d Under the exemption provision, circumstances that could occur that would cause a claimant to leave his or her employment and be eligible for unemployment benefits: • Refusing to bump • Sexual harassment • Leaving work deemed unsuitable Exemptions continued where employer may not be charged: • Quitting upon the advice of a physician or quitting to care for an immediate family member upon his or her physician’s advice. • Quitting to accept other employment that subsequently falls through, providing the claimant earns at least two times the weekly benefit amount at the new job. • Quitting because of domestic violence where the claimant made reasonable efforts to preserve employment. Written notice to the employer and some proof that this situation exists may be required. • Quitting to accompany spouse to a place from where it is impractical to commute and due to a change in the location of the spouse’s employment.

9. Voluntary Quitcont’d • Benefits May Be Allowed (Most Cases Not Protestable) • Employer violated original terms of hiring agreement or fails to deliver on a promise made to employees of a serious nature: • Promised pay raise • Promised promotion • Reduction in wages • Change in hours • Change in job duties • Quitting with good cause attributable to the employer, provided the employee took reasonable steps to rectify the situation to no avail.

10. Voluntary Quitcont’d • Things to Remember • In a voluntary quit situation, the employee is the moving party • Quit in lieu of discharge is a discharge, not a voluntary quit • Obtain written resignation where possible • Explain all duties at time of hire • Leave of absence forms should be signed by the employee and should clearly indicate what is expected of them at the conclusion of the “leave”

11. Independent Contractors • You may have if: • The individual is free from your direction or control in the performance of his or her services. • The services performed are either outside the usual course of your business or are performed outside all the places of your business. • The individual is engaged in an independently established trade, occupation, profession or business. The burden of proving that all three concurrent categories of criteria were met rests on the employer otherwise the individual will be considered an employee and maybe eligible for benefits.

12. Definition of Misconduct Illinois: At will State Only a discharge for misconduct is disqualifying. The statutory definition for misconduct is: • Misconduct means the deliberate and willful violation of a reasonable rule or policy of the employing unit, governing the individuals behavior in the performance of his or her work, provided such violation has harmed the employing unit, other employees or has been repeated by the individual, despite a warning or other explicit instruction from the employing unit.

13. You’re Fired! Terminations Protestable (Misconduct) • Absent or tardy for non-compelling reasons (with previous written warnings) • Willfully damaging company property • Working or reporting under the influence of alcohol or drugs • Sleeping on the job • Insubordination to a serious degree • Violations of a reasonable rule • Willfulpoor performance • Fighting on the job • Theft (602A) rule violation • Theft (602B)

14. Dischargecont’d(Including Job Performance) Terminations Not Protestable ( Not Misconduct) • Absent or tardy for compelling reasons • Poor work performance • Inefficiency or inability to perform • Failure to meet company standards • Isolated instance of ordinary neglect Non Charge Provisions on Discharges: • Discharge for incarceration, where the employer needs to replace worker due to production/service needs. • Discharge from healthcare employer for Section 25 violations.

15. Dischargecont’d Things to remember: Discharge • In a discharge situation, the employer is the moving party • Only a discharge for misconduct is disqualifying • Poor work performance claims are not Protestable unless the acts that resulted in the termination were deliberate and willful. Claimant must be told, e.g. willful poor performance and employer has sole burden of proving. • Warnings given the consequences noted if the conduct continues. • Triggering incident will decide the case, must be proved to be deliberate and willful. • Be consistent. • Take action at the time of the incident. Failure to do so may be interpreted as condonation. • Keep accurate records. • Find out employee’s side of the story, before termination and document it. • Tell employee the reason why he or she is being terminated.

16. Hearing Presentation Tips • General advice • Stay focused on the main issue • Object to irrelevant testimony • Remain in control • Take notes on claimant’s testimony to help with your rebuttal • Offer a summation where needed to clarify a complex case, otherwise, rest on the record

17. Who Pays and what are the options?

18. History of Unemployment Depression Congress determines that employers need to provide employees with unemployment benefits Congress find that nonprofit employers need to pay into the system to cover unemployment for their employees 1972 Congress passes new legislation to allow 501c3 nonprofits and government agencies with the option to reimburse the state for unemployment benefits 1978

19. The Law States:

20. Illinois statistics • The unemployment rate is 11% • Illinois became the 16th state to borrow money from the federal government to pay unemployment insurance benefits • Going into the recession, IL reserve was very low • In 2005, (During Good Economic times) they were forced to borrow money • In 2008, IL paid out $1.8 Billion in benefits • IL is due $300 million in stimulus money as a reward for expanding unemployment insurance eligibility.

22. The tax rate on employers was not high enough to sustain benefits paid, let alone to accumulate a safe level of reserves to prepare it for a recession • Red line  Department of Labor estimate of sustainable tax rate • Yellow line  Average tax rate Illinois employers paid.

23. Trust Fund • Outstanding loan as of Nov. 30th, 2009 = $838,349,271

24. IL Unemployment Trust Fund Millions 2008 2009 • Trust fund Report - Nov. 2008 Nov. 2009 $1,717,322,768 $11,248,320

25. 2009 Illinois Unemployment Benefits • Minimum Weekly • Single Maximum Weekly • With Dependent Spouse • With Dependent Child 51 385 459 534 = $ = $ = $ = $ Minimum Pay Out Total Pay Out Total Pay Out Total Pay Out = $ = $ = $ = $ 1,326 10,010 11,934 13,884 2009 2010 *$25.00 additional on top of the above weekly paid by the Stimulus money not charged to employers

27. Taxpaying Vs. Reimbursing • Subsidize the higher employment claims of private sector employees. • Pay money into a non-refundable state reserve account. • Reimbursing is dollar for dollar VS. Nonprofit Employment Claims Private Sector Employment Claims

28. First Nonprofit’s Unemployment Solutions • Unemployment Savings Program LLC - interest bearing account • Bonded Service Program- no risk, all inclusive program • Stop Loss Policy- provides excess coverage to minimize risk • State Mandated Bonds- collateral for specific States A product for every size nonprofit, large and small. Services and options are tailored to fit your needs.

29. Our National Nonprofit Partners

30. Unemployment Savings Program Designed for employers with 10 + employees • Nonprofit Program • Fixed Budgetary Certainty • No Pooling • Members own reserve balances • Responsible for organization’s own claims • Stop loss insurance • Protects organization from unforeseen layoffs • Maximizes cash flow • Claims administration services included

31. Bonded Service Program Designed for the large employers with 100+ FTES • Fully insured program • No reserve balance • Complete UI transfer • Fixed annual cost • Refund for positive experience • Maximizes cash flow • Claims administration service

32. How much can I SAVE ? Amounts vary for each organization ….$150.00 - $174,000 in the first year alone Prior Claims Activity Annual Gross Wages Save hundreds or thousands.

34. We will make a difference • Excellent Claims Service • Electronic link with IDES • Hearing and representation for all unemployment claims • Claim Audit and State benefit verification • Win rate is over 90% on contestable claims

35. Savings, Service & Security • You receive professional claims service • You receive budgetary certainty • You increase your cash flow • Eliminate pooling costs associated with shared risks • Payment of unemployment claims directly to the State agency • No change for your employees • We represent and advise your agency on all unemployment issues

36. Over 1200 nonprofits nationwide • Social Service Agencies • YMCAs & YWCAs • Goodwill Industries • Domestic Violence Shelters • United Way Agencies • Healthcare Agencies • Boys & Girls Clubs • Community Action Centers • Environmental Protection • Arts & Science Centers • Schools, daycare centers

37. Over 300 nonprofits in Illinois rely on us for their UI! • Aunt Martha’s Youth Service Center • Christopher House • Easter Seals, Inc. (National) • Family Service of Champaign County • Goodwill Industries of IL and WI • Hull House Association • Illinois Primary Healthcare Association • Kids Hope United • Museum of Contemporary Art • Safer Foundation • United Way of Decatur/Macon County • Village of Plainfield

38. Who can Join? • Only 501c3 organizations, municipalities and government entities • Nonprofits who are already reimbursing or self insured • Nonprofits who are not delinquent with the State

39. How to apply? • Complete one easy application • Submit a copy of your IDES Contribution Rate Notice (2009) • Return application to us • Receive a free no obligation savings quote • Time sensitive discounts applicable for early enrollment • We file paperwork with the State • Copy of 501c3 letter needed • Illinois deadline of 12/31 for taxpayers is approaching!

40. Thank You! Cecilia Piazza & Bruce Kijewski Visit our website for more information: www.firstnonprofitcompanies.com

41. Questions to Ask in your Agency? • Have you experienced any layoffs or staff reductions in the last 12 months other than regular seasonal layoffs? • Do you expect any layoffs, other than regular seasonal, or expect to eliminate any positions during the next few months or in 2009?

42. Questions to Ask in your Agency? • How will we pay for these costs? • Should we stay in the State Tax Pool? • What should I do if I reimburse or self pay? • What happens if I’m a current member of FNP?