Former Gov. Mitch Daniels' Newsroom

Contact: Jane Jankowski
Phone: 317-232-1622
Email: jjankowski@gov.in.gov 		GOV2

For Immediate Release: Jun 13, 2005
Review requested by the governor prompts DWD to change timing of unemployment eligibility for teachers
INDIANAPOLIS (June 13, 2005) – Indiana teachers who have 9-month contracts but are paid on a 12-month schedule and are laid off will no longer be ineligible for unemployment benefits because of their deferred compensation arrangement

INDIANAPOLIS (June 13, 2005) – Indiana teachers who have 9-month contracts but are paid on a 12-month schedule and are laid off will no longer be ineligible for unemployment benefits because of their deferred compensation arrangement. Governor Mitch Daniels said today that the unique set of circumstances faced by teachers justifies such a determination by the Department of Workforce Development (DWD).

 

“We will treat 9-month contract teachers on either 9-month or 12-month payment plans the same when it comes to the timing of their eligibility for unemployment insurance benefits,” said the governor. “There’s been some confusion about how to apply unemployment insurance because of the unique payment schedules for teachers, so I have directed Ron Stiver and the Department of Workforce Development to allow those on the year-round schedule to be immediately eligible for unemployment benefits, provided that they otherwise meet the criteria for eligibility.”

 

The Indiana Unemployment Insurance statute provides that a person is not eligible for benefits until that individual is no longer receiving compensation. DWD’s initial interpretation of the statute found that 9-month contract teachers would not be eligible for unemployment benefits until they no longer received pay. Under that interpretation, a teacher opting to receive 9 months of pay over 12 months would not be eligible to apply for benefits until three months later than a teacher being paid over 9 months. Previously, there had been no consistent interpretation of Administrative Law Judge cases, which caused confusion.

 

Upon the further review requested by the governor, including a look at how other states treat 9-month contract teachers on a 12-month compensation schedule, DWD now will permit all 9-month contract teachers who have received layoff notices to apply for unemployment benefits at the same time.

 

“This interpretation will be strictly limited to teachers. We don’t believe this will open our system to abuse,” said Stiver, Workforce Development commissioner.

 

 

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