The statute governing Massachusetts Unemployment Insurance was recently amended to comply with a federally imposed mandate that prohibits states from providing relief of charges to an employer’s unemployment compensation account when an employer (or employer’s agent) fails to adequately or timely respond to an information request by the Department of Unemployment Assistance (“DUA”). M.G.L. c.151A, § 38A.
Under the amended law, if an employer fails to respond or submits an untimely or inadequate response to a DUA request for information and the claimant is approved for benefits at the initial level, the employer loses party status and its ability to appeal the initial approval. Previously, employers were eligible to recoup benefits paid to claimants whose initial eligibility determination was reversed, regardless of whether the information or lack thereof provided by the employer contributed to the initial incorrect determination.
What this means for employers:
- Employers must pay close attention to information requests from the DUA, including when responses are due.
- Employer responses to information requests from the DUA must be timely and adequate.
- An adequate response is one that allows the DUA to make an eligibility determination without further clarification from the employer. All the information the employer has or can obtain should be provided on fact-finding questionnaires; answers should include all details and any documentation pertaining to the issue presented.
- A failure to respond is considered an inadequate response.
According to the DUA, an employer that fails to respond or submits a late or inadequate response will be notified that it will no longer be considered a party to any further claim proceedings (related to the particular claim) and that it will be prohibited from being relieved of any benefit charges resulting from payments on the claim.
Employers should consult legal counsel with any questions about the amended law and its impact on employer practices.
