Client Alerts, News Articles & Blog Posts

Everything you need to know about BMD and the industry.

Unemployment Requests From Former Employees

Have you received a Request for Information or Unemployment Award Decision from the a state unemployment agency for an employee who left your employ weeks or months ago? With the dramatic rise of unemployment filings as a result of the COVID-19 pandemic, many employers are receiving unemployment decisions or requests for employment information for former employees who have not been employed by them for a great period of time. 

Under most state unemployment laws, employers can be liable for a former employee’s unemployment benefits up to a year from departure of employment. The standard principles governing an employer’s liability for unemployment benefits continue to control these former employee situations. Meaning, if the employer terminated the employee without just cause or previously laid the employee off in the last year, the employer will likely be liable for the former employee’s unemployment benefits up to a year after departure, even if the employee started new employment immediately after departure.

On the other hand, if for example your former employee resigned or quit employment to take a position with a new employer or to move away, the employer will likely be able to avoid unemployment liability by responding to the information request and providing that the employee resigned or quit on their own accord. The same conclusion also holds true if you terminated the former employee for just cause.

In all cases, regardless of the reason for departure, the former employer will receive a request for information from an unemployment commission as employees have to list all employers over the last year. Therefore, employers must complete and timely respond to these requests for information, including the details surrounding the departure. Employers should include all relevant information as well, including resignation letters/emails or handbook provisions that have been violated leading to a termination. 

If an unemployment commission ultimately holds you, as the former employer, liable for unemployment benefits, it is important that you timely appeal these decisions, including all supporting legal and factual arguments and documents. Otherwise, even as the former employer, you will remain liable for up to 100% of the unemployment benefits award to the former employee.

Bryan Meek is a member of Brennan, Manna & Diamond’s Labor & Employment team and is available to assist you with responding to requests for information and/or appealing unfavorable unemployment decisions. Bryan can be reached at 330.253.5586, or bmeek@bmdllc.com.

Medicaid Announces Next Generation of Managed Care Organizations

For the first time since 2005, the Ohio Department of Medicaid (“ODM”) made significant changes to the structure of the Medicaid program by finalizing the Medicaid Managed Care Procurement process. The Procurement process began in 2019 at the behest of Governor Mike DeWine who had a goal to make Medicaid managed care more focused on the health and well-being of individuals.

BMD Appellate Win Clarifies Waiver of Contractual Right to Arbitrate

Brennan, Manna & Diamond, LLC attorneys David M. Scott, Lucas K. Palmer, and Krista D. Warren prevailed before the United States Court of Appeals for the Sixth Circuit regarding if/when a party waives a contractual right to arbitrate. Borror Property Management, LLC v. Oro Karric North, LLC, No. 20-3146 (the “Decision”).

Relief for Ohio Under the Federal American Rescue Plan Act

On March 11, 2021, President Biden signed the American Rescue Plan Act (the “Act”) — a $1.9 trillion COVID-19 relief package — a significant portion of which will be directed to the State of Ohio to support economic recovery, as outlined below.

Cleveland Manufacturer Violated OFAC Sanctions By Allowing Shipments To Iran - Know Your Customer and Know Their Customer

UniControl, Inc., a Cleveland, Ohio manufacturer of process controls, airflow pressure switches, boiler controls and other instruments, agreed to pay the Office of Foreign Assets Control “OFAC,” the financial enforcement agency of the U.S. Treasury Department, $216,464 to settle its liabilities for violations of the Iran Sanctions Program. OFAC stated that “this enforcement action highlights the importance of identifying and assessing multiple warning signs that indicate a foreign trade partner may be re-exporting goods to a sanctioned jurisdiction.”

Ohio Breach of Contract Statute of Limitations Shortened to 6 Years

On March 16, 2021, Governor DeWine signed into law S.B. 13 which shortens Ohio’s statute of limitations for filing lawsuits based on breach of contract. A statute of limitation is the time period within which a party must file a lawsuit before its claim expires as a matter of law.