Benefit charges play a large role in employers’ contribution rates. Employers can often avoid an improper payment of benefits by simply responding to the initial claim in a timely and thorough fashion. When a claimant files for benefits, the claimant is required to answer detailed questions regarding his or her employment and the manner of separation from employment. An employer potentially subject to benefit charges will receive a notice from the New Mexico Department of Workforce Solutions (NMDWS) advising that a claim has been filed and requesting information regarding the claimant’s work and separation from employment. Employers have 10 days to respond to that notice. Failure to respond to the notice can lead to improper payment of benefits which will be charged to the employer. Furthermore, if an employer appeals a decision to payment of benefits, an employer who failed to respond within the 10-day deadline may still be liable for some benefit charges, even if the employer prevails in showing that the claimant was not eligible for benefits.
Federal law requires NMDWS to charge employers for Unemployment Insurance benefit payments improperly paid to unemployed individuals when the employer has established a pattern of failing to timely and adequately respond to requests from NMDWS for separation information during a calendar year. The law applies to employers determined by NMDWS to have established a pattern of at least five (5) occurrences of failing to timely and adequately respond to requests for separation information, without good cause, during a calendar year (NMAC 11.3.300.308(C)).