Policy 5.35 - Unemployment Compensation

Federal legislation passed as Public Law 94-566, known as the “Unemployment Compensation Amendment of 1976,” extended unemployment compensation for the first time to all State employees. Unemployment compensation will be charged for each employee who separates from a job and who is qualified to receive unemployment benefits. The State has elected the Direct Reimbursement Method. The law allows the State to pay the cost of unemployment compensation by reimbursing the Employment Security Commission for benefits paid to separated employees for which the college is liable. This procedure requires only one annual payment. State departments must assure that funds are available to reimburse the Employment Security Commission. These funds are from the same source as those that originally paid the employee’s wages. Therefore, it is essential that funds be reserved during the time of employment for employees whose salaries are supported from sources which are not of a continuing nature. For positions paid from non-continuing sources, funds should be reserved for potential reimbursement payments. Any employee who separates from employment and is qualified to receive unemployment benefits must be registered with the nearest Employment Security Commission. It is the employee’s responsibility to apply for benefits. There are specific guidelines the employee must meet in order to qualify for benefits. (Contact your local Employment Security Commission for details.

Adopted: July 20, 2010