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Unemployment Compensation: Educational Institution and Reasonable Assurance

By Tony Sharrock posted 05-12-2021 02:54 PM

  

It is hard to believe that the school year is nearly over, and it is now time to consider offering your employees reasonable assurance. Anyone who works at an educational institution or institution of higher learning may fall under the reasonable assurance guidelines.

What is “reasonable assurance”? Ohio recognizes reasonable assurance as a written agreement or verification that the employee will perform services in the same or similar capacity during the next academic year or term. (Note: Reasonable assurance is a provision that is part of federal law.)

By offering reasonable assurance you are indicating to the state agency that an employee should not be paid unemployment for any weeks between two successive school terms or during scheduled and established breaks. Scheduled and established breaks are considered your customary winter, spring, and summer breaks. Calamity or snow days are not considered as part of reasonable assurance breaks.

Reasonable assurance can be offered to teachers, substitutes, coaches, and employees in positions other than an instructional capacity. As long as the employee has been provided a letter of reasonable assurance in a timely manner and that correspondence states it is your intent to re-employ him or her in the same capacity as the prior school year the employee should be disqualified from receiving benefits during customary breaks and between terms.

Employees should be given a letter of reasonable assurance before the end of the school term if it is expected that he or she will be placed the following school year in the same capacity as the current school term. It is recommended that a letter be given to each and every employee, as opposed to requiring returned letters of intent or relying on notices of board approval.

Offering reasonable assurance in a timely and appropriate manner is the best way to prevent employees from collecting unemployment benefits between terms and customary breaks. By not offering reasonable assurance to your employees, this could allow employees to collect unemployment benefits during your customary breaks and between terms.


Tony Sharrock is Director of Client Services at Sedgwick, an OASBO Strategic Partner and Benchmark Program Provider.

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