Your unemployment insurance (UI) contribution rate is based in
part on your experience rating, which reflects the stability of
your workforce and its potential for future unemployment. A relatively
low volume of unemployment claims yields a lower contribution rate.
You can help minimize your UI contribution rate by doing the
- Work with your employees to avoid voluntary quits (every
employee departure has the potential to increase your UI
rate, regardless of whether benefits are paid as a result).
- When layoffs are unavoidable, work with your state
department of labor to find work for the laid off employees
to reduce their period of unemployment.
- Grant leaves of absence to employees to help keep fully
trained personnel on board.
- Give written warning notices before discharging an employee for misconduct.
Keep copies and any supporting information to justify the discharge.
- Conduct exit interviews to determine why employees are leaving. If necessary to retain
employees (and lawful), make appropriate changes to company policies or procedures.
- When job openings occur, rehire satisfactory employees who are currently receiving UI
benefits that may be charged against you by your state UI agency.