Unemployment Compensation
Link to W.Va. Bureau of Employment Programs
Background
West Virginia’s unemployment compensation laws and policies are “out of step” with nearly all other states. West Virginia is only one of a very small number of states that provides unemployment compensation benefits to workers involved in work stoppages or strikes. The state unemployment comp system has paid out millions in benefits to workers involved in a work stoppage. In addition, the program is unique in that it awards benefits to employees discharged, even for cause. Outrageous examples involve instances where benefits have been awarded to terminated employees even in cases of gross misconduct, such as failing workplace drug tests for heroin, cocaine and other illegal substances. In another recent situation, employees of one major employer who took an early retirement financial package in early 2005, filed for and received unemployment compensation benefits.
These situations drain and undermine unemployment compensation funds for legitimate claimants – current and future. The state’s unemployment compensation trust fund would be in a much better financial condition if it did not provide payments to striking workers or to those discharged for drug-related matters.
The West Virginia Chamber urges adoption of reforms that will bring this program in line with nearly all other states. Needed changes include:
- eliminating “out of step” provisions that award benefits to striking workers;
- awarding of benefits to temporary workers who decline new assignments;
- establishing mandatory disqualification from unemployment comp benefits if a worker is terminated for failing a workplace drug or alcohol test; and
- Modifying hearing procedures and rules to reduce the burden on small businesses.