suspended from Job for over drawing unemployment Benefits

[Rae43]

What is the name of your state?What is the name of your state? Michigan

Several members of whom I represent have been suspended from work for overdrawing unemployment (while they were working) They have been accused of "theft" from the Company even though the unemployment office has told them It is an issue between the Employees and the unemployment office,not the company.

Now that they are suspended they are eligible to draw benefits again.

We are grieving this issue and will arbitrate if need be.

I was just interested in finding out if any one has heard of anything like this before?

 

[SuzieWahoozie]

If the UI claim was originally filed due to a lay-off or some other reduction in hours at the current employer and they were called back to that employer but failed to tell UI about it and continued to collect UI benefits, it does impact the pocketbook of the employer. UI rates paid by employers are in large part based on claims experience (much like car insurance...you have a bunch of accidents, your premium goes up). If they have a large UI "pay out," they must pay more into the state's UI fund next year. So, although not technically "stealing" from the company, they are being dishonest and creating the potential for lost revenue, perhaps even SIGNIFICANT lost revenue.

If the unemployment occurred at an employer other than the current employer, that previous employer stands to lose the revenue, BUT if the curent employer finds out about it, they certainly would look at the employees as dishonest for committing the fraud. Even if the fraud was not perpetrated against them, they can certainly fire employees that they believe to be dishonest.

As for the unemployment office claiming it is between them and the employees, I'd have to disagree. The repayment of the funds is certainly an issue between only those two parties, but elevated rates or risking keeping obviously dishonest employees on the payroll is the employer's business and they needed to address it - and apparently did.

Let this be a lesson to those employees. Honesty is always the best policy! Now not only will they not collect UI this time around, they'll have to repay the overage, and the employer can certainly tell any prospective employers about the incidents of fraud.

 

[Rae43]

Unemployment

Michigan-

The un employment office states they will get unemployment, but will have to repay a percentage out of their check

 

[rachelsfx]

You can't draw while employed

No wonder the company wants to fire them. If they did it by mistake, they should have corrected it right then and returned the money to UI. They might also face criminal charges too when the employer talks to UI (employers pay for unemployment insurance) about the fraud. If not for union, I know they would have been fired and probably prosecuted right away. As a former union steward, I'd probably advise them to get a lawyer.