Home > Employees > Employment Termination > Defending an Unemployment Claim


Frances Sharpe

Guide to Defending an Unemployment Claim

Contesting frivolous claims can help you avoid higher taxes


Highly
Useful
6.9
out of 10

Add Your Comments
 
 
Email Guide to Defending an Unemployment Claim to a friend
Save the Guide to Defending an Unemployment Claim to My Work.com Favorites
Print the Guide to Defending an Unemployment Claim
link to this page
Save to del.icio.us
digg it!


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.

Workers can be disqualified for unemployment benefits if they:

  1. Were fired for misconduct.
  2. Quit without good cause.
  3. Turn down a suitable job offer during the unemployment period.
  4. Are participating in a strike or work stoppage caused by a labor dispute.
  5. Are receiving Social Security benefits, severance pay, workers’ compensation payments or a private pension.
  6. Have made false claims or omitted information on their unemployment claim.

Action Steps
The best contacts and resources to help you get it done

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.

Tips & Tactics
Helpful advice for making the most of this Guide

  • In unemployment cases, the burden of proof is on the person who initiates the work separation. If an employee quits, he or she must prove “good cause”; if an employee is fired or laid off, the employer must prove that the claimant should be disqualified from receiving benefits.
  • If you discover any new information that would disqualify a former employee for benefits, report the facts to the state unemployment agency. For example, if you discover that an ex-employee has started a business or didn’t accept a job offer, inform the agency.
  • Warning notices that are signed by the employee generally have greater impact with the unemployment agency because they show that the employee was aware of their misconduct.
  • If you fire an employee for breaking an “unwritten rule”, you may have to prove that you have uniformly enforced that rule.
  • If you fire someone for sexual harassment, you’ll need to produce “eyewitnesses” in hearings in addition to written documentation, or you’ll likely lose the case. Eyewitnesses may include the victim—whose identity does not need to be protected—and anyone else who witnessed the fired employee’s behavior.

Featured Vendors

AT&T Enterprise Solutions
The Most Innovative Network Mngmnt Capabilities in Telecommunications.
att.com/enterprise

Human Resources Consultants
Get a Free Datasheet From a Leading Human Resources Consultants Company & Integrate Learning, Compliance, Performance, Compensation and Succession.
www.cornerstoneondemand.com

Outsource Human Resources
Maximize the Value of Your People. Get Free Quotes from HR Providers!
HRO.BuyerZone.com

Human Resources Consultants
Find 45,000 jobs that pay over $100,000. Search now.
www.theladders.com

Sign up for the What Works for Business weekly e-newsletter!
 Related Resources from Business.com Back to top 
  CommentsBack to top 

Loading Comments...


Add Your Comments


Email Guide to Defending an Unemployment Claim to a friend
Save the Guide to Defending an Unemployment Claim to My Work.com Favorites
Print the Guide to Defending an Unemployment Claim
link to this page
Save to del.icio.us
digg it!


Is any content on this page inappropriate? To let us know, please click here.



© 2009 Work.com, Inc. All Rights Reserved. Work.com is a property of Business.com.
Help | About Us | Site Map | Terms of Use | Privacy Policy | Community Policy | Taskonomy | Advertise | Contact Us | Local Business Directory | Work.com Feed