labor lawAdivision of labor law center

When an individual files a claim for benefits, two determinations are made. The first is a monetary determination of the amount of benefits the claimant may receive based on his/her wages paid in a specified time period (base period). The second is a non-monetery determination that considers the claimant’s eligibility for benefits and reason for separation from employment. Both determinations affect the charging of the employer’s account. The claimant, your employee, will learn about filing from the Alabama Unemployment Insurance Posters. Alabama Administrative Code 480-4-2-.19 requires that the Alabama Unemployment Insurance Posters be posted conspicuously so that all employees can see it.

The gross wages paid to a claimant by all employers in the base period are used in determining a claimant’s weekly benefit amount (WBA) and maximum benefit amount (MBA). An employer’s charging for benefits is based on the following elements.

1. Base Period Gross Wages Paid by the Employer - The base period is defined in Alabama’s Unemployment Compensation Law as the first four of the last five completed calendar quarters prior to the filing of the claim, and is used to establish eligibility for benefits.
2. Cost Ratio (Percentage) - If a claimant has only one employer in the base period, that employer’s account would be charged for 100% of the cost for benefits paid and chargeable. If the claimant had two or more employers during the base period, each employer’s liability would be determined by its percentage of the total gross wages paid by all base period employers.The percentage, times the total amount of benefits ultimately received by the claimant while unemployed, equal the employer’s benefit charges. The claimant will have learned from the Alabama Unemployment Insurance Posters the conditions that will allow him/her to receive benefits. The employer is notified of the exact amount of charges at the end of each calendar quarter. Benefits charged to the employer’s account may increase the employer’ tax rate and result in higher tax payments that will enable the Trust Fund to recover the benefits paid over a three year period.

The Alabama Unemployment Insurance Posters lets workers know that they are covered by the Alabama Unemployment Compensation Law.

The Alabama Unemployment Insurance Posters tells them that they will get benefits if they become totally or partially unemployed – meeting conditions defined by laws. The Alabama Unemployment Insurance Posters also will tell employees that they can receive benefits if they are separated from their job through no fault of their own. Finally, the Alabama Unemployment Insurance Posters will explain that if they leave their employment without good cause, they may not be able to get benefits.

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