Department of Labor Tightens Screws on Employers

The U.S. and Georgia Departments of Labor are tightening employer-reporting requirements with respect to departing employees. Starting on October 22, 2013, any employer that fails to timely respond to three separate GDOL information requests will be charged for benefits paid on all subsequent claims during that calendar year. In other words, should the employer fail to respond to GDOL requests on three separate occasions, any employee can thereafter claim unemployment and the employer cannot contest it – even if the employee was rightfully fired for cause. The result will unquestionably mean the employer will be slapped with higher unemployment tax withholding rates.

While the new penalties apply to all businesses, entrepreneurs and small businesses are likely to be hit harder by the change. Statistics show companies that lack full time human resources personnel are more likely to miss deadlines or reporting requirements.

Consequently, it is critical that you stay alert to any correspondence received from the Georgia Department of Labor. If you are uncertain as what you have received, we would be happy to explain.

Sincerely,

Shepherd Law, LLC