smith123
06-29-2005, 08:09 AM
I am the new manager of a seasonal restaurant in Connecticut. For over 40 years we have closed in the winter for 3 months. We have absolutely no money coming in at this time and our employees know this when they begin working for us that we will be closed in the winter. Some of our employees collect unemployment during this time which the owner has always allowed. Do we have any legal standing to appeal their request for unemployment compensation? Our unemployment rate is at the maximum in the state because of this and is costing us a lot of money. Any information would be very much appreciated. Thank you.
Beth3
06-29-2005, 08:34 AM
Some of our employees collect unemployment during this time which the owner has always allowed. Employers neither deny nor allow claims. The State makes that decision.
Do we have any legal standing to appeal their request for unemployment compensation? An employer is always free to contest an uhemployment claim. The question is whether the State will grant benefits for individuals who voluntarily accepted employment knowing that the duration of the job is nine months per year. I can't answer that but you may certainly contest the claims and force the State to make a ruling on eligibility for these claimants.
Our unemployment rate is at the maximum in the state because of this and is costing us a lot of money. Understood. The other thing to consider though is that IF the State determines that your employees are not eligible for UC benefits, how many of them will fail to return to work when you re-open, having found they need year-round income/jobs? And do you care?
I don't have any idea what your recruiting/retention challenges are and what difficulties it would cause your business if you had to replace many of your employees each season. Just something for you to consider before you go down this path. It could be that the UC tax on your payroll is cheaper than having to recruit, hire, and train many new employees each year.
SteveDiG
10-27-2005, 04:33 PM
Heartily agree with Beth3's post here. Quite frankly, it is often cheaper to "pay-off" laid-off workers so that you don't have to face the usually very expensive costs (incidental and direct) of recruiting, orienting, and in other ways "working up" new staff - even when TRAINING as such is NOT an issue.
It's amazing how many (usually smaller and less experienced) employers miss this glaring fact.
leopardseal
01-17-2006, 11:37 PM
Connecticut does not differenciate between year-round and seasonal benefits. Even if the EE knew that the job was seasonal and even signed to acknowledge it, he would be eligible for unemployment in the exact same manner as if he was laid-off from a year-round employer. Once the EE earns $500 in CT, the employer owns the obligation.
Leopardseal, this post has been dormant since October. Please do not respond to dormant posts.