Unemployment Insurance Alert: Have You Received A Noncompliance Letter?

February 16, 2016

The Unemployment Insurance Agency (UIA) mailed a batch of noncompliance determinations to employers in January, notifying them that they would be charged for claims for which they do not provide “adequate or timely” information to the UIA in the calendar year. Employers should consider protesting these noncompliance determinations if they believe the noncompliance determination was made in error and wish to be relieved of these charges. 

The noncompliance determinations reflect the UIA’s broad interpretation of state and federal laws defining what constitutes a “pattern” in this context. In order to determine a pattern, the agency establishes a “baseline” of data to ensure that an employer’s failure to timely or adequately respond meets the requirements provided under the law.  Having established a pattern does not automatically indicate charging to the employer’s unemployment insurance (UI) account; the provision is only applied if the employer has established a pattern and is not timely or adequate in responding on the current claim. 

Chamber members should check any noncompliance determinations they receive carefully, as many members are reporting that the determinations are not accurate for a variety reasons and/or that the UIA is systematically counting failures to respond in situations where no response is required. The notice includes the cases upon which the notice was based, and the criteria applied. 

The Michigan Chamber is currently engaged in conversations with the UIA’s broad interpretation and enforcement of the statue. In the meantime, employers should consider protesting the determination if they believe there was a mistake or error. The Form UIA 6367, Notice of Determination of Employer Charging, contains the information necessary for the employer to protest if they believe they were timely and designated in error (the same protest rights as other agency determinations would apply).

Please contact Wendy Block at (517) 927-5135 or wblock@michamber.com with any questions or if you wish to provide examples of the UIA’s overreach on this issue.