Unemployment Benefits Refresher, Part II

 A common administrative headache for employers is dealing with terminated employees who go on to seek unemployment benefits. While an employer has the right to challenge the award of unemployment benefits, choosing to do so requires careful consideration.  The process can be time-consuming and may require a commitment of more resources than one would like.  Additionally, challenging an award of unemployment benefits may serve to push a former employee into litigation that he or she may not have pursued otherwise.  That being said, if an employer has good documentation regarding a termination and clear, uniformly enforced employee policies, challenging a claim for unemployment benefits can be successful.

As an employer, one of the most difficult parts of the job can be letting an employee go or eliminating their position. When the departure is an amicable one, many employers choose to provide a severance package. In some cases, an employment contract or union agreement may require severance pay no matter how the relationship ends.

Few things are more frustrating for an employer than terminating an employee for cause due to violation of company policy, be it for failing a drug test or some form of misconduct, and then that employee being awarded unemployment benefits. We here at McBrayer PLLC find this result to be all too common, and then it is typically an uphill battle to overturn the award.  In many instances, the problem lies not in the award itself, but in the lack of foresight and preparation which preceded the termination of the employee.  If the first time the issue of unemployment benefits is addressed is post-termination, then the key moment to address the issue has likely been lost.