Huh? No chit. I never heard that. Dont seem fair to me.

 

Check it out. Most OTR companies do not pay unemployment, because of state lines and FLSA. Companies that have union drivers are different...that would be covered by the union agreement.

For that majority though, driving jobs are usually plentiful and easy to get...so the companies do not and are not required to, pay unemployment. How many drivers see a deduction on their pay checks for unemployment insurance?? Not many.

 

The state pays the UMC,not the company. The driver just files an out of state claim. Crossing state lines has no bearing on it.

 

I you had a deduction from your paycheck for UMC,the state would be interested in it as it's unlawfull.

 

The employer pays a percentage of payroll taxes as unemployment compensation. Interstate Carriers are exempt from paying that, due to federal and state, EEOC and FLSA regulations. "Local" hourly drivers work under different labor regulations.
When I lived in California and New Mexico, there was a percentage of my paycheck, which went towards unemployment compensation.


About 2%. In WA, ARCO paid the entire portion. When I was laid off, they informed those of us taking the package, that we would receive unemployment for 24 months, uncontested.

Truck drivers receiving unemployment is a state by state decision.
CA does not pay unemployment to Interstate Truck drivers, but they do payout to Intrastate drivers. CA has a form that each individual fills out, while in the hiring process, that sets the percentage of the employee's wage that will be deducted and paid to the state Unemployment Insurance Commission. That individual's "State Income" tax deduction is reduced by that percentage paid to UI.

There is also a huge difference between Worker's Compensation (Injury pay) and Unemployment Compensation.

Worker's Compensation can not be deducted from an employee's pay.

As an Owner Operator, I am required to carry my own "Worker's Compensation" insurance, which is deducted weekly from each settlement.

As an owner Operator, I also carry my own insurance, which cost's me $227 each month, that cover's me if my truck is involved in an accident and is inoperable for longer that 2 weeks, if I am sick and unable to work for longer than 2 weeks, or if I am injured and unable to return to work, for longer than 4 weeks. After each 2 week wait period, I will receive 70% of my last 6 weeks "averaged" settlements. (I pray that nothing major happens until after the economy recovers)

In the case of injury, I will receive 55% of the last 6 weeks average settlement, after a 4 week wait. Any "Workers Compensation" I receive, under my "Workers Compensation" insurance, is not included in, nor does it exclude me from, receiving benefits from my insurance company.

 

Interstate carriers are not exempt from paying UMC or FUT. No part of FLSA. I've had interstate drivers in CA that have drawn UMC. Other than voluntary deductions the only legal deductions from your check are fed income tax,state income tax,local income tax,FICA and medicare.Anything else is voluntary.(there are some union temporary UMC benefits that can be deducted also.)
In 2008 i paid in excess of 26,000.00 into UMC. If you can show my attorney where i don't have to pay this i'll split it with you.

 

BTW EEOC only covers discrimination in the workplace. (sex,age race ect)
FLSA only covers federal minimum wage,overtime and child labor.
Neither cover UMC as that is state to state.
The only thing federal in unemployment is FUT,in some cases you are exempt from.

 

Ok...YOU have allowed a state to pay out unemployment dollars to one of your drivers?? That must be something. What were the conditions, that you said yes to CA paying out that comp?

30 years of driving here, and the only driver's I have ever known that recieved Unemployment compensation worked for Ryerson Steel and Boeing, plus Teamster drivers from CF, Roadway, ABF..and the like. As far as OTR drivers.....I have never known one OTR driver whom applied for UI and received it from an OTR carrier. You saying you paid it out is a first for me.
In states like CA, OR and Wa, I have known local drivers, whom did not cross statelines ever, in a truck, whom received UI when laid off due to weather. I have known local drivers whom crossed statelines, such as WA into OR, to do work, whom were laid off, and denied UI benefits, because they crossed that line.

The reason truck drivers seldom if ever receive UI? OTR driving jobs "are" a dime a dozen, just as "drivers" are a dime a dozen.

I have known plenty of OTR drivers that filed for unemployment against former carrier employers, and were denied. The states involved were fairly well represented. CA, OR, WA, ID, UT, WY, NM, OK, TX, OH, ND. Some of the Dow drivers, released in the early 80's, were denied unemployment, for various reasons. My older brother was one of those whom was denied. Dow offered him work as a "Contract Employee". His wife was against him working like that. He turned down the offer...They denied him his UI. There were hundreds whom were treated like that. Laid off as a regular employee, offered work through a Contract Company, declined the work, denied unemployment compensation because of that.
The lazy ones would sit at home for 13 weeks, then re-file, at which time they received federal funds, at about 1/4 of the rate they would have received, had they been laid off from working at a C-store or truckstop. Not even close to what they should have qualified for when they were laid off at Dow.

I have paystubs from the 70's and 80's, before I went to work for ARCO, and the UI deductions range anywhere from $7 a week in WY in 1979, to $58 a week in CA in 1987. At ARCO the UI deductions for 1989 and 1990 averaged $39 a week. ARCO started paying the full UI bill in 1991. I have had UI deductions in WY, NM, CA and WA. All states I lived in.

Now...if that was your contribution to the UI fund, it raises the question(s). How many drivers do you employ? How many non-drivers do you employ? What pay rate do your drivers receive? What pay rate do your non-drivers receive? What is your annual revenue? How many employees are paid on 1099?

All are questions your not going to answer.

You say you paid out over $26,000 in UI money. Was that what you had to pay to the state, due to payroll....or YOU authorized $26,000 in payments? If you authorized UI payments...You are to be commended for doing so. You are one of the very few whom would.

 

The employer does not detemine when a driver receives unemployment.(except temporary layoff) the state does. If it wasn't a "qualified"firing they are eligible.
The employer can appeal the decision.(some you win,some you lose)
Most decent drivers get another job,some try to sit on their *** and draw UI.
I attend labor law seminars 6 times a year,all states require UI.
As i said before the deductions on your check to a union plan are not the same as to a state.A union plan can/will exempt you from the state.
The states charge .xx% up to the median wage for that state.(if the rate is .03% and the median wage is 25,000.00 you pay UI in the amount of 750.00,anything over 25,000.00 in the calender year is not taxed.)
As far as the number of my employees/revenue,no it is not your business. The only 1099's are to the O/O's all others are W2's.(if you work on a 1099 you're not eligible for UI)
I do have a nexus in CA,OR,and other states.The only time i pay UI to them is if the driver resides in that state,otherwise it's paid to my home base state.

 

I vote for Chris1 on this argument.

I collected unemployment from TRL after they canned me because someone stole my dropped and loaded trailer. This was in PA and I ran PA, NY and NJ for them.

The decisive factor is whether it is a qualified termination or layoff, not which borders you crossed in performance of your job.