When making a job offer, it is important to consider the concept of suitable work as it has an impact on the unemployment process. We will take a look at several topics, including identifying what suitable work means, how work is offered to someone, and how suitable work offers could affect an unemployment claim.
What is suitable work?
All states have a provision that allows an individual to refuse an offer of work when the offer is determined to not be suitable employment for the individual. While the exact rules can vary from state to state, under federal law, an individual is not required to accept work that is less favorable in terms of wages, hours, or other conditions than those prevailing for similar work in the area.
Most state laws include criteria for evaluating the suitability of work in addition to the requirements of federal law. Such provisions generally include:
- the degree of risk to an individual’s health and safety
- the individual’s physical fitness, prior training, experience, and earnings
- the length of unemployment and prospects for securing local work in a customary occupation
- the distance of the available work from the individual’s residence
Earnings
The rate of pay can be a reason an employee may refuse an offer of suitable work. Some states include specific criteria up front that evaluate the earnings for a new job compared to other factors. Often those factors are based on what the individual was previously earning or their current weekly benefit amount. Generally speaking, if the rate of pay is comparable to what they were previously earning, it will be considered to be a suitable offer.
Distance
The distance of the job site/location from the employee’s residence can also be a valid reason for refusing an offer of work. If the location is in the same general locale as the previous employment, the state will determine that the offer is reasonable. Each situation will differ, but states will be looking to see if the distance is reasonable given the geographical area.
Duration of Unemployment
Another factor that plays into the earnings scenario is the length of time that someone is unemployed. For example, after an individual is on unemployment for a set length of time (usually 10 weeks or more), the criteria the states use for determining what is suitable work related to earnings can change dramatically. In some cases, as long as the job pays minimum wage and they are earning more than their weekly benefit amount, the state will consider the offer suitable.
How should I offer work to a potential employee?
Reporting job refusals is a key component to managing your unemployment costs. When a state workforce agency receives a report of a job refusal, the burden of proof for refusing that offer is placed on the employee. To aid the agency in investigating these refusals, it is a best practice to provide the following information when an offer is made:
- Job Title
- Rate of pay
- Scheduled start date
- Duration of offer (is this temporary or permanent)
- Work Hours or schedule
- Job location
In addition, employers should document how the offer was made (phone, email, letter) and who made the offer to the employee. It is important to document any subsequent attempts to contact the employee and if a deadline was provided on the offer, what was the deadline that was conveyed. If the employee refuses the offer, document the reason that they provided and the date that the offer was declined.
Job Refusal Impact on Unemployment
Job refusals have an immediate impact on you, as the employer, in that you still have open positions that you need to fill. But job refusals can also impact your unemployment costs as well. Unemployment benefits, funded by employers, are designed to provide supplemental income to individuals out of work through no fault of their own, and who are able, available, and actively seeking work. Refusing a suitable offer of work can cause an employee to be disqualified from receiving further unemployment benefits. Such disqualifications prevent improper payment of benefits from being paid and mitigate potential increased unemployment cost to you, the employer.
Reporting job refusals to Thomas & Company can ensure that these refusals are reported to the state workforce agency and together we can mitigate unwarranted benefit charges to your account. SHIELD users can upload documentation about job refusals directly inside the SHIELD portal. If you are not a SHIELD user, you can report job refusals to your T&C team by sending the information listed above to job-refusal@thomas-and-company.com. Your T&C team will report these refusals to the state workforce agency and monitor your account. Once the state concludes their investigation and determines that a suitable offer of work was refused, the employee may be disqualified from receiving additional unemployment benefits. We will monitor your account to ensure that no additional benefits are charged to your account.
Reporting and monitoring job refusals is just one way that Thomas & Company helps you manage your unemployment costs.