COVID–Related Unemployment Claims Won’t Impact Experience Rating

COVID–Related Unemployment Claims Won’t Impact Experience Rating

The COVID-19 pandemic has led to an unprecedented number of UI claims throughout New York. In response to these claims, the New York Department of Labor(“DOL”) has temporarily changed how benefits will impact dealers cost and experience rating.  The DOL changes are intended to ease the burden of unemployment charges incurred by employers during the pandemic.   

Specifically, the change, which is effective immediately and applies retroactively to March 9, 2020, provides that: (1) any future charges for unemployment benefits paid to claimants shall not be charged to the dealer’s individual unemployment insurance account and will be applied to New York State’s general unemployment insurance account during the pandemic; and (2) any past charges for unemployment benefits already paid to claimants since March 9, 2020, and previously applied to an employer’s account are canceled.

The Commissioner stated that she will revoke and rescind this Order at the expiration of the state disaster emergency declared by Executive Order 202 or when the emergency flexibility granted by the FFCRA expires, whichever occurs first. However, nothing contained in this Order prevents her from revoking and rescinding, or amending, this Order sooner at her discretion.

Take Away for Dealers

Dealer’s experience ratings should not be impacted by the influx of unemployment claims experienced due to the pandemic. However, it is unclear whether employers will ultimately still have to pay some unemployment insurance taxes.

Dealers who receive charge statements, bills, and other documents from the DOL may continue to protest claims and alert the DOL of fraudulent claims for benefits. Dealers should consult with legal counsel to ensure you are meeting any obligation and to confirm whether any future payment is due.