How Often Do Employees Win Unemployment Appeals? 

As an employer, paying into your state’s and federal unemployment tax systems is one of your primary obligations. Remaining compliant with your tax responsibilities ensures you’re in good standing with federal and state governments. However, the unemployment insurance system can be complex and difficult to understand. On top of that, unemployment benefits can be expensive for employers, especially for organizations with a high unemployment tax rate.

It’s important for employers to understand how unemployment benefits work. One segment of the unemployment insurance benefits process is the appeals process, which allows employers and employees to appeal any decision that might impact unemployment benefits. But how often do employees win unemployment appeals? The unemployment appeal success rate varies depending on a wide range of factors. In this guide, we’ll dive into how often employees win unemployment appeals, as well as factors influencing appeals outcomes, strategies for appeal success, common challenges and more.

Quick Answer: How Often Do Employees Win Unemployment Appeals?

According to the U.S. Department of Labor, the national unemployment appeal success rate for lower authority reversals for employees is 28.7 percent from Oct. 1, 2022, to Sept. 30, 2023. For higher authority reversals for employees, the percentage of employees winning unemployment appeals was 10.7 percent from Oct. 1, 2022, to Sept. 30, 2023. However, it’s important to note that the unemployment appeal success rate for employees is affected by numerous factors, such as the state where the employee works, applicable labor laws, evidence presented in the case and specific circumstances unique to their case.

As an employer, understanding the unemployment appeal success rate for employees can help you devise a strategy to ensure your own success. Generally, an employee might be eligible to claim unemployment benefits if they lose their job through no fault of their own, whether from a layoff or a company closure, for example. However, employers can dispute an employee’s unemployment insurance claim to receive benefits, and when this occurs, an employee can file an appeal. The success of an unemployment appeal often hinges on whether an employee can prove they meet the eligibility requirements for unemployment benefits and that they weren’t terminated from their place of employment for reasons that disqualify them, such as workplace misconduct. In the next section, we’ll dive into how the unemployment appeals process works so employers can understand what to expect when an appeal is initiated.

Unemployment Appeals Explained

If you’re an employer, you may find yourself in a situation where an employee appeals their unemployment benefits decision in hopes of getting a reversal and their unemployment benefits approved. In this situation, knowing how the appeals process unfolds is important for adequate preparation. The unemployment appeals process varies by state and case, but most appeals follow a general process. Below is a typical overview of how the unemployment appeals process works:

1. Initial claim: When an employee loses their job from a fault that is out of their control, they can file an initial claim to receive unemployment benefits from their state’s unemployment agency.

2. Claim determination: Once a state unemployment agency receives an applicant’s claim for unemployment benefits, they will review the case to determine their eligibility, which depends on factors like the reason for their job separation, work history and other relatable details. After the case is reviewed, the state unemployment agency will make a decision and notify the claimant on whether they are eligible for benefits.

3. Appeal period: State unemployment agencies have an appeal period, which is typically around two weeks between the date the decision was made and the end of the appeal period. During this time, claimants can file an appeal if they are denied unemployment benefits.

4. Appeal hearing: Once a claimant files an unemployment benefits appeal, they will attend an appeal hearing, where the employer will also be present. During a hearing, their case will be heard and both the employee and employer can provide evidence, such as witnesses, documents and other relevant information that supports their position. Appeal hearings can occur in person, over the phone or through other means, depending on jurisdiction.

5. Appeal decision: After all evidence is presented at the hearing, an appeals examiner or administrative law judge will assess the case, consider the evidence presented and decide whether the claimant is eligible for unemployment insurance benefits.

6. Additional appeals: In some cases, appeals can extend beyond the initial hearing, with the appeal moving up to a higher authority or court, depending on the applicable rules and regulations of the specific jurisdiction.

Overall, the appeals process can be time-consuming and emotional for both parties. Understanding the unemployment appeals process can help employers prepare and ensure they get a favorable outcome.

Statistics Snapshot

So, how often do employees win unemployment appeals? The unemployment appeal success rate can vary significantly based on a variety of factors. From data provided by the U.S. Department of Labor, it was found that 28.7 percent of claimants nationally were able to reverse their denial in lower authority reversals, whereas 10.7 percent of claimants nationally were able to reverse their denial in higher authority reversals. One of the top factors affecting the unemployment appeal success rate is jurisdiction. Here’s a quick snapshot of some of the state-specific unemployment appeal success rates in lower authority reversals from Oct. 1, 2022, to Sept. 30, 2023:

• California: 41.7 percent

• Florida: 23.1 percent

• Georgia: 15.0 percent

• Illinois: 21.4 percent

• Massachusetts: 34.8 percent

• Maryland: 57.4 percent

• New Jersey: 21.7 percent

• New York: 24.7 percent

• Tennessee: 7.5 percent

• Texas: 8.0 percent

• Washington: 25.7 percent

Factors Influencing Appeal Outcomes

Several factors can influence the unemployment appeal success rate. While the specific circumstances of each case and the applicable laws in the jurisdiction play a critical role in the outcome, several key factors can impact any appeal, such as:

• Reason for job separation: Perhaps the most critical factor influencing appeals outcomes is the reason an employee was separated from their job. In order to claim unemployment benefits, the reason for the separation has to be out of the employee’s control, such as in the event of a layoff or business closure. If the reason for job separation includes misconduct, malpractice or any other disqualifying factor, the appeal might be denied. As an employer, limiting the number of layoffs can help reduce unemployment claims.

• Evidence: The unemployment appeal success rate also weighs heavily on the evidence and documentation provided during an appeals hearing. As an employer, to improve the likelihood of winning your side of the appeal, it’s recommended to present strong evidence that supports your position. This means producing evidence related to job performance, job separation, employment relationship, communications and witnesses.

• Witnesses: Employers and employees can bring witnesses in for testimony. Carefully considering the witnesses you bring to the hearing can significantly impact the outcome. It’s important to ensure the witnesses are related to the specific situation, as written statements can be viewed as hearsay and dismissed. When bringing in a witness, ensure you discuss their testimony before the hearing to ensure their recollection of events supports you.

• Conduct: How employers conduct themselves and behave during an unemployment appeals hearing is another crucial factor in the outcome of the appeal. Everyone should show up on time, act respectfully and be prepared.

• Deadlines: There are several deadlines to be aware of with appeals hearings, so ensure you adhere to these deadlines and provide necessary documentation when needed.

• Consistency: When presenting a case for denying unemployment, it’s also important to remain consistent in your statements. Providing different versions of stories or events can weaken your argument and raise doubts about your organization’s credibility.

These are some of the many factors that can influence the outcome of an unemployment benefits appeal. Being aware of them can help you avoid them to ensure the best possible outcome for your case.

Understanding Employee Rights

As an employer, if a former employee files an appeal, it’s important to understand their rights to ensure you remain compliant with applicable state and federal laws. While employee rights can vary by jurisdiction, some of the general rights employees are entitled to include:

• Right to appeal: To begin, employers should understand an employee’s right to appeal. If an employee is denied unemployment benefits, they can legally challenge the initial decision and attend a hearing.

• Due process: As with any legal battle, claimants are entitled to due process, which allows them to present their side of the story and be heard. Employers must give employees a fair opportunity to present their case.

• Confidentiality: With any unemployment appeal, employers should respect the confidentiality of employee information. Disclosing employee information without proper authorization can violate their privacy rights and applicable employment laws.

• Non-retaliation: Employers are not allowed to retaliate against employees who appeal an unemployment benefits decision, as this can result in legal consequences.

• Access to information: Employees also have a right to access relevant information related to their unemployment benefits appeals case and the reasons for their denial.

• Representation: Employees have the right to be represented by legal counsel during an unemployment benefits appeals hearing, and employers should be prepared to communicate with legal representatives on behalf of the employee.

Understanding employee rights during an unemployment appeals hearing is crucial, as it helps to ensure you remain compliant with local and federal laws. Failing to respect employee rights can result in legal consequences.

Strategies for Appeal Success

To win an unemployment appeal as an employer requires careful preparation and a strong understanding of employment laws. While each jurisdiction has state-specific laws, many of them are similar. If you’re an employer in the midst of an unemployment appeals hearing, below are some strategies to succeed in your case:

• Revisit the reason for denial: When an appeal is filed, it’s crucial to reexamine the reason the employee was denied unemployment benefits in the first place. This information can help you build a strong case for your side.

• Produce supportive documentation: To prepare for the appeal hearing, it’s imperative to have relevant documentation supporting your case for denial. Documentation may include termination letters, employment contracts, performance reviews and other applicable evidence supporting your case. Use anything that showcases the employee’s ineligibility for unemployment benefits.

• Understand misconduct: If you terminated the employee due to misconduct, make sure you have evidence prepared that can support that allegation and your version of events.

• Review company policies: It’s also important to review company policies you have in place and the employment contracts that were signed during the hiring process to ensure the employee broke company policies that led to their termination.

• Present relevant first-hand testimony: In many cases, witnesses can be your greatest defense. Present testimony from witnesses with first-hand knowledge of the events that unfolded and led to the employee’s termination.

• Hire legal representation: Understanding employment laws can be complex, so hiring an attorney or legal representative (if your company doesn’t have one) can help you build a strong case to ensure unemployment benefits aren’t given to someone deemed ineligible.

• Prepare for your appeal hearing: When you get to the hearing date, make sure you’re adequately prepared. Dress professionally and show up on time. It’s also crucial to be consistent in your statements and to be honest throughout the hearing, as inconsistencies can weaken your case.

Common Challenges

There are various challenges you might face as an employer during an unemployment appeals hearing. Unemployment hearings can be highly emotional and stressful. As an employer, providing unemployment benefits to an employee who was terminated due to misconduct or breach of contract can cause financial strain that hurts your bottom line. One of the great challenges is managing emotional stress, so it’s important to remain composed during your hearing to present your case.

Another challenge employers might face is understanding the entire process. The unemployment appeals process can be complex and time-consuming, and a lack of knowledge about the rules and procedures can pose a serious obstacle. Seeking legal representation can provide peace of mind when navigating the hearing.

Gathering strong evidence is another challenge employers might face when building their case to support the denial of unemployment benefits. Employers may have difficulty obtaining documentation, collecting witness statements and gathering other evidence that strengthens their side.

The Role of Legal Representation

Enlisting the help of legal representation to assist you throughout the unemployment appeals process can be beneficial. A lawyer or other legal representative often has a strong understanding of the legal procedures and regulations that govern unemployment appeals. Additionally, legal representatives understand relevant employment laws that might impact your case. They can also assist in devising a sound legal strategy and argument to support your side of the appeal.

If you’re an employer, you can reduce costs and ensure compliance with unemployment hearings with the help of a representative like Experian Employer Services. Our unemployment cost and claims management services help reduce the risk, cost and burden of navigating unemployment claims while ensuring compliance.