Board Member filed for Unemployment?

[gryndor]

What is the name of your state (only U.S. law)? CA

We are a special district that handles local utilities. We have an elected board of directors, consisting of five members. A couple weeks ago, we received a notice from EDD that our Board President had filed a claim for unemployment, sourcing us as her last employer. She is an elected member of our board, and her term doesn't expire for another couple years. Our board members get a small monthly stipend, and most of them are retired members of the community, so they don't have another employer I can point at as their primary source of income.

I sent this information on the original claim, and had a follow up phone call along the same lines. I have received a determination in the mail this morning that said they ARE considering her an employee, and that we are her last employer...

I have an appeals form in front of me, and I want to know how I should fill it out to make a strong case for our company. Our board members are not hired or fired, she is not supervised, she doesn't report to anyone, and she is not offered any of our benefits/insurance like employees are. She was elected by popular vote and is only in the middle of her term as Board President. It doesn't make sense to me that she would collect unemployment from us.

What would you recommend and am I just completely wrong about her status in our company?

 

[OHRoadwarrior]

Are you a non profit? To develop your argument, Google "Independent Contractor or Employee: How Government Agencies Make the Call" for guidance.

 

[davew128]

I would consider a board member an employee. That said, I think you're probably misreading the document somehow since it is unlikely YOU are being listed as a separating employer nor is the claim against you. More than likely the board member was terminated elsewhere and is listing you as the last employer (which may be technically correct).

 

[commentator]

I agree with Dave. When a person files for unemployment benefits, they must be out of work through no fault of their own, which this person obviously is NOT out of work from your board. She must also be able, available and actively seeking other employment, and she must be monetarily eligible, which means she must have sufficient wages in the past eighteen months (first four of the last five quarters) to set up a claim. To do this, all the places she has worked and made covered wages are pulled in, not just the one that is laying her off or whatever the case may be.

Surely you are not her only employer during the past 18 months. If you are not, if she has been working somewhere else as her major employer, and is now out of work, and you have shown up as one of her base period employers, then you need to confirm that she is working all the hours available to her for this job, which can't be many hours. Your agency will be charged according to what percentage of the claim comes from her wages paid in by your agency. If I'm understanding you correctly, it can't be very much at all. If she is listed as an employee, and you are a base period employer, there could be a small percentage of her claim that comes from you guys. But as I said, it can't be very much, and to your knowledge, this job has NOT ended, correct?

If she is laid off from another job, and has a tiny bit of covered wages showing from your agency, and she draws benefits, and she is working all the hours you all have available for her, you will be on the hook for a tiny bit of her unemployment. Not enough to count, and not enough to worry about. There's nothing you can say except the truth, and they will deal with the situation, you don't need to come up with some brilliant argument as to why she should not be granted unemployment.

Before I filled out anything, I would call the state department of labor, tax department, where you file your quarterly tax reports for all employees, and get this straightened out. If you are not a reporting employer, if she is not considered an employee, rather a contractor, you will have NO tax responsibility and should not have been filing tax reports on her.

It appears you do not understand, and it appears that there is some confusion related to just how much of this person's unemployment is going to be billed to you. The state department of labor will be glad to help you get this straightened out.
In many states, though not all, there is a very good possibility there will be a "non charge" to your account, which means that though the wages will be used to set up a claim, because you are not laying her off, your account will not be charged. Ask this when you call the Dept of Labor. I have a feeling that the form you have in front of you may be a request for a non charge.