Q: Is my employer exempt from paying into unemployment?
When I was let go, I was told was “it isn’t working out, no misconduct.” But when I applied for unemployment benefits, I was denied because my employer (a religious organization) is exempt from paying into unemployment. So even though I’m unemployed through no fault of my own, I still can’t collect. What gives?
A: Yes. Some employers are exempt.
The vast majority of employers are required to participate in the unemployment program. But some employers are not required to participate; they can opt out. Religious institutions are not the only ones who are exempt. Non-profit organizations and tribal governments are two other exemptions that come to mind. However, even when a business is exempt, they can opt-in so their employees can claim unemployment benefits when they separate. For example, nearly all the tribal governments in Oklahoma opt-in, though they are not required.
The state laws define who counts as an employer and who doesn’t, i.e, who’s exempt, AND what counts as covered employment for unemployment purposes.
Employer is defined in 40 OS § 1-208.
Employment (for unemployment purposes) is defined in 40 O.S § 1-210.
If you have questions about whether your employer is exempt from the unemployment program, let’s talk about them!
