Using Letters of Reasonable Assurance
Are your unemployment claims costs mounting? What can you do to drive these costs down? Anything? Yes! Annually, you can issue a Letter of Reasonable Assurance to employees to significantly reduce the charter’s unemployment claim costs.
What is a Letter of Reasonable Assurance?
A Letter of Reasonable Assurance is a written agreement from the school that an employee can expect to return to the same or similar job after a scheduled break. Scheduled breaks may entail Spring break, Christmas break, Summer break, or other planned breaks during which the employee is not working.
Why issue a Letter of Reasonable Assurance?
Schools see a rise in employees filing for unemployment benefits during scheduled breaks over the school year and especially in the summer. The Texas Unemployment Compensation Act has a provision called “Reasonable Assurance” that protects charter schools during summer months and other scheduled breaks. See more from TWC on this topic here: https://www.twc.texas.gov/jobseekers/if-you-worked-school#reasonableAssurance With this letter in place, benefits are usually not payable during the summer break.
When should a charter school issue a Letter of Reasonable Assurance?
While there is no required timing, best practice suggests that Letters of Reasonable Assurance are typically issued in Spring. This gives the employee ample time to sign and return it before the school year ends.
Who should be issued a Letter of Reasonable Assurance?
A letter should be issued to nonexempt employees that work less than 12 months. Examples include: Substitutes, Teacher Aides, Paraprofessionals, Food Service Workers, etc.
What should I do if an employee refuses to sign the Letter of Reasonable Assurance?
Place verbiage on the letter stating that failing to sign and return the letter is treated as a voluntary termination of employment. Make sure you keep record of you offer of this letter to the employee and their refusal to sign.
COVID -19 Impacts on Unemployment Claims
How does COVID-19 and school closures impact unemployment claims?
Letters of Reasonable Assurance protect schools during normal scheduled breaks. An emergency closure is not a scheduled break, therefore, it will be easier for employees to pursue claims during the pandemic. However, reasonable assurance letters may be used to protect your charter school against current claims that extend into the regularly-scheduled summer break.
How should we prepare for the resumption of normal operations after COVID-19?
The short answer is stay flexible. The TWC could update rules and regulations at any time. As an administrator, it is important to stay up-to-date with the TWC and how COVID-19 is impacting your local area.
TWC Links:
- https://www.twc.texas.gov/news/frequently-asked-questions-about-unemployment-insurance-benefits-related-covid-19#mostRecentQuestions
- https://www.twc.texas.gov/news/frequently-asked-questions-about-unemployment-insurance-benefits-related-covid-19
- https://www.twc.texas.gov/jobseekers/eligibility-benefit-amounts#benefitAmounts