I manage a small physician office in the Chicago area. One of our employees was hit by a car after work while crossing the street. She never returned to work due to her injuries. We are too small for FMLA, so she was on an unprotected leave. After almost 2 months, we hired a new employee for her position. Now we are having to pay unemployment for her. I appealed it and lost. Since she never returned to work, isn't that considered a resignation rather than a termination? Should we be paying unemployment? If not, how do I appeal it?

Since she never returned to work, isn't that considered a resignation rather than a termination? No. She didn't voluntarily resign.

Should we be paying unemployment? Only if she is now physically capable of working. You certainly shouldn't be paying UC (nor should she be collecting) if she is still medically disabled.

If not, how do I appeal it? When you received a copy of the Initial Determination from the State notifying you of their decision, that information would have been included. Basically, all you have to do is send the UC Division a letter stating you disagree with the decision and that you are requesting a hearing - but you must do it within the time frame that was specified on the Initial Determination.