HR: Winning Unemployment Disputes
In previous blogs I have talked about the unemployment claims process- specifically- when and why it’s important for employers to dispute claims. With the continuing extension of unemployment benefits and the number of claims still rising, employers should be aware of what they can do to be successful in winning unemployment disputes.
Every business has employee turnover. Whether losing an employee is voluntary or involuntary, claims for unemployment insurance can be costly to a business. In order to minimize costs and make certain the claims system is working the way it should be- it’s up to employers to be diligent in raising issues and contesting claims when appropriate.
There are numerous reasons why a claimant may not be eligible for unemployment benefits, but the two primary reasons for disqualification are 1.) the employee resigned without good cause attributed to the employer and 2.) they were discharged for misconduct in connection with their work. Regardless of the reason for termination many departing employees automatically file for unemployment and a majority of these claims are awarded.
There are a couple of things an employer can do, though, to assure that only valid claims are awarded to employees. The following are a few tips to help increase an employer’s chances of winning a disputed claim.
- Documentation- In unemployment disputes, the burden of proof is on the employer. Written documentation that an employer provides regarding an employee’s work history and termination is critical in disputing claims and will be used as key evidence. An employer must know and properly document the accurate reason for all terminations. Verification that the employee was aware of company policies (a signed employee handbook) is also helpful.
- Representation- Who handles the appeals hearings in a company is also an important consideration. It’s imperative that the employer side of the hearing be led by an experienced professional with human resource knowledge and someone that understands the unemployment hearing process.
Unfortunately in today’s economic climate, the odds of winning unemployment claims are not in favor of the employer-- but written documentation, clear communication and representation can help increase an employer’s chances.