Your Department, CSU, Chico

Project Director Advisories

7.16.08 Unemployment Insurance/Workers' Compensation Rate Increases

TO: All Foundation Project Directors

FROM: Karen Finley, Human Resources Director

RE: Unemployment Insurance-Rate Increase
Workers’ Compensation Insurance - Rate Decrease

As we get settled into the new fiscal year you may become aware of some changes in the benefit costs charged to your projects. First, the good news is that for the 4th year in a row, our workers’ compensation insurance costs have continued to go down. This is largely due to our participation in a self-insured workers’ compensation pool, but is also impacted by our own experience. Please continue to train your employees in safe practices; to utilize protective equipment/clothing when the demands of the position require and to always be conscientious about utilizing proper lifting, carrying and sitting techniques. Even sedentary jobs require a safety awareness approach.

We are experiencing an increase in our Unemployment Insurance costs for the coming fiscal year. Unemployment insurance is a legally mandated benefit provided to all employees in California. We have been fortunate to be able to participate in a pooled trust for this purpose which has greatly minimized the cost of this benefit from that which we would have paid in the State system. We are required to fund the reserves based on payroll levels and experience. The Foundation as a whole has experienced fairly stable employment levels over the past year; however, there has been an increased number of individuals filing for UI benefits. We would expect this trend to continue under the current economic climate.

As project directors, you can also help us work at controlling the costs of this benefit. Whenever an employee ceases to work for you, a PAF should be submitted clearly indicating the reason for the separation from employment. Employees who voluntarily separate from employment without good cause are unable to collect UI—-thereby reducing our experience rates and the cost of the benefits. If you receive a request for information from EDD about an employee, that form should immediately be forwarded to the Foundation Administration Office so that it can be responded to through our trust administration. Often an employee will name the department they work for as the employer instead of the CSU Chico Research Foundation causing a time delay. Our responses are time sensitive.

Please let me know if you have any questions.

Karen Finley
Associate Executive Director
Human Resources Director
The CSU, Chico Research Foundation
Phone: 530.898.6811
Fax: 530.898.6021

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