If you fire or lay off an employee, or if a worker quits, you may be faced with a claim for unemployment benefits. Unemployment benefits are designed for people who lose their jobs due to no fault of their own, such as those who are laid off because an employer doesn’t have enough work for them. When a worker clearly deserves unemployment benefits, there’s no point in racking up legal fees trying to contest a claim. However, if an employee quits to start his or her own business, or you fire someone for stealing, coming to work intoxicated or excessive absences, you may want to defend the claim. Contesting a claim can pay off because your state unemployment tax rate goes up in direct relation to the number of former employees who are collecting unemployment from you. In addition, if you contest a claim and win, it may discourage workers from filing a wrongful termination lawsuit.
Gather documentation
Whenever an employee quits or is fired, gather all records that may influence an unemployment claim. For employees who are fired for misconduct, documents should include written records of warnings and progressive disciplinary actions taken. If there are any witnesses to the employee’s actions that led to the termination, get written statements from them.
I recommend: Download employee discipline warning forms, absence report forms, notices of sexual harassment complaints and other important HR forms from the
HR Document Center.
Fill out the employer notification form
When a worker makes an unemployment claim, your state unemployment agency will send you an official form to complete. Typical information you’ll need to provide includes the employee’s length of employment with your company, annual wages and whether the employee quit voluntarily or was fired. If an employee was fired, you’ll need to explain the reasons for the termination. Fill out the form and return it by the deadline or ask for an extension. If you miss the deadline, chances are the employee will automatically be awarded unemployment benefits.
I recommend: Download forms from your state’s unemployment agency, which can be found by clicking on your state at the
U.S. Department of Labor Web site. View a sample
Notice of Unemployment Insurance Claim Filed (DE 1101CZ) from California.
Go to hearings
If there are any hearings scheduled before the state unemployment agency, it’s a good idea to attend. Be prepared to present your case and bring any documentation to support your case. You aren’t required to be represented by an attorney at such hearings, but it may be a good idea if the amount of money you stand to pay out for the potential claim and resulting tax hike is substantial.
I recommend: Find links to your state’s unemployment agency at the
U.S. Department of Labor Web site.
File an appeal
If you lose the case following a hearing, file an appeal with the unemployment agency. You’ll likely need an attorney who practices employment law to assist you with the appeal process.
I recommend: Use
AllLaw.com’s Attorney Locate search engine to find an attorney who practices employment law in your area. Contact your
state agency for appeal forms. For examples, download the
Employment Development Department Appeal Form (DE 1000M) for the State of California or view the
Unemployment Compensation Appeal for the State of Florida.