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Q. As districts consider layoffs and/or shortening of the school year will affected employees be eligible for unemployment insurance benefits?

A. Yes. Employees who are laid off and no longer have a job with the district may be eligible for unemployment benefits. Shortening the school year by more than a week may also be a qualifying event for unemployment benefits.

In education, summer break is an annual event and unemployment is not usually an issue. Typically, unemployment is used to replace part of an employees income when they become unemployed. Employees who are released for summer break are not considered unemployed, but does reducing the work year by a few days make someone unemployed?

ORS 657.221 addresses educational institution personnel eligibility for unemployment benefits. The law does not allow for the payment of unemployment benefits during an “established and customary vacation period or holiday recess if such individual performs such services in the period immediately before such vacation period or holiday recess, and there is reasonable assurance that such individual will perform such services . . . in the period immediately following such vacation period or holiday recess.” The important point here is that layoffs or the shortening of the school year are not likely to be considered “established or customary” unless the District has a history of adjusting the work year. However, if the year is shortened by a week or less, that week will be considered the “waiting week” and employees will not be eligible for unemployment benefits unless additional reductions follow in the same year. Everyone serves a waiting week. 

Q. How long is the “waiting week?”

A. A “week” as defined in subsection (10) of ORS 657.010 means any period of seven consecutive calendar days ending at midnight. OAR 471-030-0005 also provides that the statutory definition shall not be construed to allow benefits for a period of less than seven days or for the same period more than once.

Q. Who pays for unemployment benefits?

A. Employers (school districts) pay for unemployment insurance benefits. No contributions come from employee wages.

Q. How much unemployment benefits do eligible employees receive?

A. Currently, the unemployed can draw a maximum benefit of $405.00 per week for a maximum of 26 weeks (or $10,530). The minimum benefit is $94 per week for a maximum of 26 weeks (or $2,444).

The actual amount of benefit is based on how much money the employee made in the recent 12-month period known as the base year. The weekly amount is set by law (ORS 657.105) as a percentage (1.25%) of the total wages paid in the individual’s base year within the minimum and maximum benefits levels noted above. If the wages during the qualifying period are at least $7,520, then the person will be eligible for 26 weeks of benefits. If the qualifying wages are less then the most an employee would receive is one third of those wages, paid at $94 a week. Benefits are considered taxable income to the employee.

During periods of high unemployment an extension of benefits may be available to individuals who exhaust all their regular benefits. A Notice of Potential Eligibility is mailed to the affected individuals by the Employment Department along with an application form.

Q. How do districts (the employer) pay for unemployment benefits?

A. There are three methods that school districts can elect to cover their obligation on unemployment insurance:

Direct Pay. ORS 657.505(6) School districts may, in lieu of taxes required, pay into the fund an amount equivalent to the amount of all regular benefits and all extended benefits paid out to claimants who during the applicable base year were paid wages by the political subdivision. The billing for direct pay is quarterly, and in good times, probably the least expensive plan. About 75%-80% of districts use this method.

Tax Rate. ORS 657.405 to 657.495. The rate varies from .9% up to 5.4% of payroll salary depending on unemployment claim history.

Trust Fund. Local Governments also have the option of joining the Local Government Employer Benefit Trust Fund. This fund will pay the direct pay invoice mentioned above. Districts wishing to join this must notify the employment department no later than January 31 of a calendar year. They pay in 1% into the trust fund. 

Q. Are all employees who separate from their employer eligible for unemployment insurance?

A. No. Employees are disqualified from receiving unemployment insurance benefits if they voluntarily left work without good cause or were discharged or suspended for work misconduct.

Good Cause means a grave or serious situation that would cause a reasonable and prudent person to quit a job. Misconduct means a willful or wantonly negligent violation of the employer’s standards of behavior for it employees or disregard of the employer’s interest.

Q. What happens if the employee starts to receive retirement pay after they receive unemployment insurance benefits?

A. The amount and kind of retirement pay may affect the benefits. Retirement pay could make the employee ineligible, reduce the benefits or have no effect. Social Security will not affect the benefits unless the employee does not want to work, limits work, or work less than full time.

Q. If a former employee has unemployment benefits reduced or denied can they appeal the decision?

A. Yes. Administrative decisions by the Employment Department may be reviewed through a hearings process. An Administrative Law Judge (ALJ) who is an employee of the Employment Department is a neutral judge of the facts, conducts the hearing and issues a written decision. ALJ decisions may be appealed to the Employment Appeals Board (EAB). Decisions of the EAB may be appealed to the Oregon Court of Appeals. Employers also have the same appeal rights as the former employees.

Q. How can we learn more about unemployment insurance benefits?

A. To learn more about unemployment, Districts can visit the Employment Department’s web page for information about eligibility, waiting weeks, notifications, frequently asked questions, and claims at the Oregon Department of Employment: http://findit.emp.state.or.us/uiinfo.cfm.