Our Human Resources Blog

The current unemployment rates in the DC metro area have not been this high in approximately 25 years.  With Maryland sitting at 7.2%, Virginia at 6.5% and DC at 11.1%, the number of unemployment claims being filed is at an all time high.  Fortunately, the process for filing a claim is quite simple.  Employees file their claims in the states where they work and can even do so on the internet in most states.  Once a claim is filed, the employer is sent a request for separation information that informs the state about employment dates, salary and reason for separation from employment.  The majority of unemployment claims are resolved at this point. Some claims require further steps to decide the eligibility of a claimant.

There are situations when either an in-person or telephone hearing is requested to determine unemployment eligibility.  Both the claimant (the former employee) and the employer participate in these hearings.  The process works very much like a courtroom.  Both parties are sworn in and the "hearing examiner" takes the testimony of both the employer and the claimant. Each person has the opportunity to question the other's testimony and give a final statement. Typically, a decision is rendered in 2-3 weeks. The decision is sent in the mail to both parties, along with the information regarding the appeal process.  Claims can be appealed by both the claimant and the employer.

So as an employer, which claims do I want to contest and which claims should I leave be?  If you've had to lay off an employee due to restructuring or cutting costs, this employee is more than likely going to be awarded unemployment and no contest is necessary. After all, unemployment insurance was originally created to help those people who loose their employment out of no fault of their own.  On the other hand, if an employee chooses to leave the company, this is considered a voluntary quit and they are typically not eligible for the benefit. This is usually established with the "Reason for Separation" form. 

The decision to contest a claim really comes into play when an employee is discharged for disciplinary reasons.  Although the hearing examiners use the written law as their guide, interpretation of those laws can still be subjective.  If an employee's discharge is well-documented, it's worth the small effort to contest the claim.  Be advised that most states are looking for what they call "gross misconduct" when it comes to denying a claimant unemployment benefits. You may find that some discharged employees will still receive unemployment benefits, even when terminated for cause.  It's still worth the small amount of effort to contest the claims of misconduct, as even if you only win half of them it will help to keep your state unemployment taxes down- if you do.