How to Defend an Unemployment Claim

Business Survival Tip
Episode 35
By Carl Kleimann
March 24, 2010

Full Interview transcript

Carl: Hello business owners this is Carl Kleimann from Odyssey OneSource with another Business Survival Tip. With unemployment tax rates on the rise in most states, it is more important than ever for employers to diligently contest unwarranted claims for unemployment benefits. The amount of unemployment tax that you pay goes up in directly relation to the number of former employees who are collecting unemployment from you. You should treat every claim as if you were paying for it out of your own pocket.

State unemployment benefits are designed for people who lose their jobs due to no fault of their own. This includes lay-offs and in most cases, terminations for job-related performance. Unemployment benefits are not intended for those who are fired for misconduct or quit without good cause. Of course anyone can file a claim for unemployment benefits and it is your duty as an employer to contest those claims that are unwarranted.

When a claim is filed, you will receive notice from your state unemployment agency. In Texas, that is the Workforce Commission for example. Typical information you will need to provide includes the employee’s length of employment, annual wages and whether the employee voluntarily quit 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 request an extension. If you miss the deadline, chances are the employee will automatically be awarded unemployment benefits.

If the claim is scheduled for a hearing before the state unemployment agency, you should attend. Hearings are often conducted by phone. Be prepared to present your case and provide any supporting documentation. You are not required to be represented by an attorney at such a hearing.

If you lose an unwarranted claim at the hearing, file an appeal. You should consider hiring an attorney to assist you with your appeal. If you lose upon appeal, you may have the right to appeal again but you should carefully weigh the cost and benefits of doing so.

I am Carl Kleimann and this has been another Business Survival Tip by Odyssey OneSource, ranked as the number one Professional Employer Organization three years running by the Black Book of Outsourcing.
For more information on this and other issues affecting employers, please visit www.odysseyonesource.com