How and When Employers Should Challenge an Employee's Unemployment Claim

Losing a job can be tough, and not everyone who's out of a job gets unemployment benefits. A worker might get these benefits based on how they left the job and whether their former employer disagrees with their claim.

As an employer, you have a say in whether an ex-employee gets unemployment pay. If an ex-worker asks for unemployment benefits, you need to decide whether to fight that claim or not.
 

When Can a Worker Get Unemployment Pay?

A worker can only get unemployment benefits if they didn't cause their own job loss. This depends on the situation – did they quit, get laid off, or were they fired?

Laid Off Workers:

Anyone who's out of a job because of layoffs (like when a company needs to cut costs and let go of staff) will always be allowed to get unemployment benefits.

Fired Workers:

If a worker was let go because the company was cutting back or because they weren't the right fit, they can often get unemployment pay. Sometimes even minor issues like being late a few times won't stop them from getting benefits.

But, if they were fired for serious bad behavior (called 'misconduct'), like stealing from the company, being drunk at work, or harassing other employees, they probably won't get unemployment money.

Workers Who Quit:

If a worker quits their job, they need a really strong reason to still get benefits – for example, if they left because they were harassed or the job was dangerous to their health.

If they left just because they didn't like the job or wanted to find a better one, they likely won't qualify for unemployment benefits.
 

Should You Fight an Unemployment Claim?

Even though you can challenge an unemployment claim, it's the state's unemployment office that decides if the ex-employee will get the benefits. Your choice to challenge can seriously affect the outcome.

For example, in California, an employee who's fired will normally get unemployment benefits unless you, the employer, object.

But remember, don't bother fighting a claim if the worker was laid off or if they were fired for small mistakes. Only challenge the claim if they were fired for serious misconduct or quit without a valid reason.

Employers usually fight unemployment claims for two reasons:
 

• They're worried their costs will go up (employers pay for unemployment insurance).
• They think the employee might sue them for wrongful termination.
• When fighting a claim, just be careful. It takes time and money, and it can turn the ex-worker against you and maybe even prompt them to sue.

Before deciding, it might be worth talking to your state's unemployment office to see how a claim could affect your rates. Sometimes, it might be smarter not to challenge.
 

How to Challenge an Unemployment Claim

Even though rules change from state to state, here's the basic process:
 

1. Get a notice that an ex-worker filed for unemployment.
2. Check the details of their claim, like when they worked for you and why they left.
3. If you want to challenge, tell the unemployment agency quickly, sometimes in just a few weeks.
4. Give evidence for why you're challenging.
5. Go to the unemployment hearing.
6. Wait for the judge's written decision. If needed, you can appeal.

It's usually a good idea to have a lawyer help with the challenge. They know the rules and can make your case as strong as possible.

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