A Look into the Future: Last Employer Will Soon be Able to Have Unemployment Benefit Charges Recalculated

Currently, the last employer is required to pay 100% of unemployment insurance benefits for the first seven weeks of a former employee’s claim. Effective January 1, 2009, however, the last employer of a claimant who has filed for unemployment benefits may apply to the Department of Labor to have those benefits recalculated if the employer can demonstrate that it paid the claimant less in total wages than the seven weeks of benefits it would otherwise have to pay. If such a showing can be made, the last employer would only have to pay in benefits an amount roughly equal to the amount of compensation it had paid the claimant. The remainder of the charges would be allocated proportionately among all base period employers.