In an ideal world, employers strive to keep employees in their company until they reach retirement. However, this isn’t always achievable, as some may venture off to new opportunities, or you may need to make the hard decision to terminate an employee for misconduct. In some cases, when an employee relationship ends, you may find an unemployment claim against your business. However, not every unemployment claim is warranted, and as an employer, it’s your responsibility to identify and know how to dispute unemployment claims to protect your bottom line and cash flow. Handling unemployment claims can be time-consuming and complex, but there are steps you can take to increase the likelihood of success in unemployment hearings.

Common reasons for unemployment claims disputes.

Common Reasons for Unemployment Claims Disputes

In most cases, an employee can file for unemployment benefits if they lose their job through no fault of their own. Commonly, this is the result of an employer laying off an employee. Other examples that allow an employee to claim unemployment benefits include:

  • Quitting due to a hostile work environment
  • Leaving due to a health condition that prevents them from performing their job duties
  • The employer can’t provide reasonable accommodation
  • Resigning due to employer misconduct

However, certain employee departures are ineligible for unemployment benefits, and when this happens, employers can contest an unemployment claim. Common reasons for unemployment claims disputes include: 

  • Voluntary resignation: If an employee voluntarily resigns from their job without good cause, such as wanting a career change, going back to school, or relocating for personal preference, they are typically ineligible for unemployment benefits.
  • Misconduct: Employees can only claim unemployment benefits if they lose work through no fault of their own. If an employee is found guilty of misconduct, whether there’s evidence of theft, harassment, repeated policy violations, or any other inappropriate behavior, they typically can’t qualify for unemployment benefits.
  • Poor job performance: When an employee is dismissed for poor job performance and failing to meet job standards despite training and performance improvement plans, they may be ineligible for unemployment benefits. However, some states have protections in place to allow employees who were let go for poor performance if it wasn’t intentional to claim benefits.

While these are reasons that typically disqualify an employee from claiming unemployment benefits, they may still submit a claim, whether intentionally or by simply not understanding the rules in place. When this happens, it’s often up to employers to spot ineligible claims and to dispute them. To dispute an unemployment claim as an employer, you’ll need to attend a hearing and provide evidence that supports the dispute, and there are several strategies you can leverage to ensure your success.

Strategies for Handling Disputes

Unemployment claims can be extremely costly for employers, as employers with a high number of claims can face a high unemployment insurance tax rate. Contesting and disputing unemployment claims can help prevent improper benefit payments, which is why knowing how to win your unemployment appeal hearing is crucial. Implement these strategies on how to dispute unemployment claims​ to ensure a positive outcome:

  • Review the hearing notice: When an employee applies for unemployment benefits and you dispute the claim, your state’s unemployment agency will send a hearing notice. Carefully review this notice to understand the date and time of the hearing and whether it will be held in person or over the phone. Your notice will also provide clear instructions on how to submit supporting evidence and documentation and how to submit contact information for witnesses.

  • Prepare your documents: When an employer disputes an unemployment claim, the key to a successful hearing is adequately preparing the right documentation. Your hearing offer will request a range of documents before the hearing that support your position. Examples of documentation you may need include:
  • Separation documents: Provide evidence of employment history that details the employee’s start and end dates of employment with information outlining their job title, duties, and pay rate at the time of separation, such as a termination notice, resignation letter, or separation notice.    
  • Disciplinary records: If an employee was let go due to poor job performance, misconduct, or any other inappropriate behavior, provide detailed disciplinary records that highlight warnings, performance improvement plans, or suspensions.
  • Performance reviews: Submit official performance reviews that outline instances where the employee failed to abide by company policies.
  • Company policies: Provide a copy of your company policies or employee handbook that details attendance requirements, training manuals, and other workplace policies, with a signed receipt from the employee for all of these documents.
  • Witness statements: Witnesses with direct knowledge of the employee’s misconduct or performance should submit a written witness statement if they can’t attend the hearing in person. However, an in-person testimonial is always preferred over written statements.

  • Select witnesses with firsthand knowledge: It’s crucial to select witnesses who have firsthand knowledge of the incident that led to the employee’s termination to testify at the unemployment hearing. These witnesses provide credibility to your claim and can provide specific details and context that can offer the hearing officer more information surrounding the case that can help them make a decision. Secondhand witnesses and witness statements can sometimes be dismissed as hearsay, so focusing on gathering witnesses with firsthand knowledge is recommended.

  • Prepare participants before the hearing: As you approach your hearing, take time to meet with everyone from your company who will be attending the hearing to ensure they’re aware of the process and their role. Also, use this time to review your evidence and supporting documents to ensure a successful case.

Appealing an Unemployment Claim

Are you in a situation where you need to dispute an unemployment claim? Understanding the appeals process can be confusing. However, employers have the right to appeal an unemployment claim if they believe an employee is ineligible for these benefits. Below is a breakdown of the steps involved when appealing an unemployment claim.

Grounds for appealing an unemployment claim.

Grounds for appeal

To dispute an unemployment claim, it’s important to understand the grounds for appeal. A common reason for an employer appeal is if an employee misrepresents the facts, such as submitting a reason for leaving that is inaccurate or incomplete. 

Some examples of this could include:

  • An employee claiming they were laid off when they were actually terminated for misconduct. 
  • An employee voluntarily quotes without good cause, whether it be personal dissatisfaction with pay or their dislike of their commute. 
  • An employee violating company policies or partaking in other work-related misconduct 

All of these can warrant an employer to dispute an unemployment claim.

How to prepare for the unemployment claims hearing.

Preparing for a hearing

If you find an employee falsely claiming unemployment benefits, you generally have 10 to 30 days to file an appeal with your state’s unemployment agency. Once an appeal is filed, you will be asked to attend an unemployment hearing. To prepare for an appeal hearing, employers should:

  • Gather documentation: Collect all evidence that supports your appeal, such as termination notices, performance reviews, attendance records, and written warnings, along with detailed records of policy violations or performance issues.
  • Prepare witnesses: Gather witnesses with firsthand knowledge of the incident that led to the employee’s termination, such as supervisors or HR personnel, to strengthen your case.
  • Review company policies: Read through your company policies, such as those related to attendance, misconduct, or disciplinary policies, to demonstrate the standards you expect employees to meet and how that employee violated them.
  • Seek legal advice: In some cases, you may want to consider legal advice or unemployment cost and claims management services that provide complete hearings representation.
What to expect during the unemployment claims hearing process.

What to expect during the appeals process

Once your appeal is filed and you’re prepared for your hearing, here’s what to expect during the appeals process:

  • Conduct of the hearing: In most cases, an unemployment hearing is conducted by an administrative law judge (ALJ) or an appeal board who reviews the evidence and listens to the statements from both sides.
  • Questioning: The appeals judge will ask the employer and employee questions regarding the reason for separation to determine whether the employee is eligible for unemployment benefits.
  • Witness statements: During the hearing, there will be an opportunity for witnesses from both sides to provide their detailed accounts related to the employee’s reason for separation.
  • Decision: Once the hearing is concluded, the hearing officer will review the evidence and provide a written decision, typically within a few weeks. In some cases, if either party is dissatisfied with the decision, they may be able to appeal to a higher court.

Best Practices for Preventing Unemployment Claims Disputes

The best way to avoid unemployment claims is to prevent them from happening in the first place. Follow these best practices to prevent unemployment claims disputes:

  • Hire carefully: Take time to carefully hire employees, ensuring they’re the right fit for the role with relevant job experience and qualifications.

  • Define expectations: During the interview process and onboarding, once a job is offered, clearly define the new hire’s expectations and job duties, along with company policies that they sign to prove they’ve been told, to ensure they understand what’s expected of them.

  • Provide warnings: Before abruptly firing an employee, carefully consider the decision and provide a warning first. This way, you can have proof the employee understands how their actions or performance can result in their termination, and this warning can be used as evidence should these actions continue.

  • Document everything: Make sure to document everything to have proof in the event you need to dispute an unemployment claim, such as job descriptions, contracts, policy changes, resignation letters, and witness statements.
Work with Experian Employer Services to manage your unemployment costs.

Resolve Claims Efficiently with Experian Employer Services

Relieve stress by turning to Experian Employer Services as your trusted unemployment cost management partner. Our unemployment cost and claims management services pair you with experts who can handle your claims and hearings administration on your behalf while remaining compliant with regulatory changes.

Along with unemployment claims management, we offer a suite of workforce management solutions, including ACA compliance like ACA reporting services. With these services, you can avoid costly ACA penalties and ensure compliance with state ACA reporting requirements. Book a demo today to learn more.