Jon Searles

Unemployment Compensation - An Employers Point of View



Posted: Saturday, January 10, 2009

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Managing in four different states has given me the opportunity to represent companies in unemployment claims in those states. An unemployment claim is one in which an employee who has been discharged from employment or quit and has filed an unemployment claim and the state has determined that your company will pay a portion of the cost through either an increased tax rate or fee percentage. Most people who file for unemployment do not realize that some of the cost is passed on to former employers. Employers have the right to object to any unemployment claim filed against them.

Employer's who work to keep the costs of doing business low will argue the point with the appropriate state office. If the employer wins the case, which can involve up to three time consuming steps; written verifications with appropriate evidence, face to face hearing with former employee in front of a state official, and finally court review, there is no increased cost other than the time used to support the company's position. In my experience the burden of proof falls to the employer and employees are surprised that they have chance of not getting benefits. If the employee wins, he or she gets paid unemployment compensation and the employer's rates increase. The former employee or employer has the right to appeal each level of decision until the final court review, which is final. At this point we are not discussing criminal activity on the part of the employer, such as sexual harassment, that would require an attorney and court room which is an entirely different. Obviously during this sometimes lengthy process the former employee is not paid and is hopefully looking for a new job.

Many of you are thinking that it is the employer's responsibility to ALWAYS shoulder the extra cost of these claims and should never fight them. I do agree that employers, who are in chronic lay off industries, downsize employee numbers because of poor business choices, or release employees improperly should be held accountable for these costs. However I would also agree that employees who leave without another job waiting or participate in activity or behavior that result in them being fairly discharged from employment should not be eligible for unemployment claims. Unemployment monies should be available to those people who have proven to be good employees that may have just hit a little bit of hard luck, not for opportunists who want checks for no work.

Right now with unemployment claims reaching record numbers it is important that those people that are not eligible find it difficult to get the money and those that are out of work through no fault of their own should be allowed to draw the money needed to help them make it until they find new employment.

Many employees do not take responsibilities for their actions in the workplace and find themselves without a job. Some people feel they are "entitled" to their unemployment money without any regard for their actions in the loss of employment. Unemployment compensation checks are a benefit, like insurance, that we should never want to use, but is there if we need it. Those that receive these monies unjustly, simply increase costs for all.

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Top-level comments on this article: (2 total)
» left by Lisa Shepard
3 years 29 days ago.
4 fans.
Jon that is a fantastic article especially for the ones that are receiving unemployement. You did mention about the sexual harrassment issue and I'd like to comment on that. I did leave my position for one of my employers because he was sexually harrassing me and I could not continue to "go to work" and put up with the crap anymore. I did file for unemployment and because I walked, I didn't receive it. Guess what happened after that? I had to go to my local Social Service office. Who flips the bill then? The county. So, the way I looked at it, my prior boss did end up paying me in one form or another, but so did folks that really shouldn't of had to pay for me to stay on DSS. I did get a job, after 5 months. Five long months. I did seek attorney help, but they also told me nothing I could do (even that I had some evidence). I've lived by this motto "what comes around goes around". One day, it will be his turn and I will be the one with the smug look.
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» left by straight talk
3 years 28 days ago.
111 fans. Follow straight talk on twitter!
I'm sure that those interested in the topic presented will find your article informative and interesting and open for consideration by all sides. Good job.
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