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Thread: Why do employers protest unemployment claims

  1. #1
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    Default Why do employers protest unemployment claims

    Have no knowledge of unemployment system. Don't understand how it
    would hurt an employer to have a former employee be approved for UI
    benefits -- how does it hurt them? As I understand it, they will do
    almost anything to try to block an unemployment claim. ?


  2. #2
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    Default Why do employers protest unemployment claims

    >Have no knowledge of unemployment system. Don't understand how it
    would hurt an employer to have a former employee be approved for UIbenefits -- how does it hurt them? As I understand it, they will doalmost anything to try to block an unemployment claim. ?
    Doesn't the employer essentially PAY the unemployment benefits for
    workers they laid off? Or most of them? I don't mean in a general
    way that employers pay for unemployment benefits, I mean that Joe
    Schmoe, former employee of XYZ Corp, getting approved for $5K in
    unemployment benefits costs XYZ Corp about $5K. And if Joe Schmoe
    quit rather than being laid off, that's $5K XYZ Corp. shouldn't
    have to pay.

    Or do I misunderstand how it works? I'm describing how I believe
    it works in Texas.

    Gordon L. Burditt


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    Default Why do employers protest unemployment claims

    apirion@gmail.com wrote:
    Have no knowledge of unemployment system. Don't understand how it would hurt an employer to have a former employee be approved for UI benefits -- how does it hurt them? As I understand it, they will do almost anything to try to block an unemployment claim. ?
    Depending on your state, the amount the employer must pay into the
    system is probably related to how many former employees collect from
    it. This encourages employers to avoid having their employees in
    a position to collect (such as by laying them off) -- although an
    employer may well treat this added expense in unemployment "premiums"
    just a cost of doing business, making their next layoff still a
    rational decision.

    It depends on the state and the specific facts whether the former
    employee will succeed. Massachusetts tends to favor the employee:
    even an involuntary termination for non-willful, non-gross negligence
    or incompetence allows collecting, as does a constructive termination
    ("Please resign") or some changes in working conditions or compensation.

    --
    - David Chesler <chesler@post.harvard.edu>
    Iacta alea est


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    Default Why do employers protest unemployment claims

    In article <a7ro82hhcaolfdidp3iqrjgem622mqsakv@4ax.com>,
    apirion@gmail.com wrote:
    Have no knowledge of unemployment system. Don't understand how it would hurt an employer to have a former employee be approved for UI benefits -- how does it hurt them? As I understand it, they will do almost anything to try to block an unemployment claim. ?
    The amount of unemployment tax that an employer pays depends
    on how many and how recently that the employer has had some
    one draw against them. If they let someone who does not
    deserve unemployment draw, they will see their taxes go up,
    and it may stay at the higher rate for 5 years or more, much
    longer than the 6 months that a typical ex-employee can draw.

    -john-

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    John A. Weeks III 952-432-2708 john@johnweeks.com
    Newave Communications http://www.johnweeks.com
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    Default Why do employers protest unemployment claims

    In article <a7ro82hhcaolfdidp3iqrjgem622mqsakv@4ax.com>,
    <apirion@gmail.com> wrote:
    Have no knowledge of unemployment system. Don't understand how itwould hurt an employer to have a former employee be approved for UIbenefits -- how does it hurt them? As I understand it, they will doalmost anything to try to block an unemployment claim. ?
    The amount an employer pays for unimployment insurance depends on the
    amount his ex-employees collect.

    Seth


  6. #6
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    Default Why do employers protest unemployment claims

    apirion@gmail.com wrote:
    Have no knowledge of unemployment system. Don't understand how it would hurt an employer to have a former employee be approved for UI benefits -- how does it hurt them? As I understand it, they will do almost anything to try to block an unemployment claim. ?
    The more claims against an employer, the more his rates go up. It's like
    auto insurance (or other insurance). If you have claims against you, you
    pay more in premiums. Premiums are where the money comes from to pay
    unemployment benefits. Did you think it is free money from heaven?

    -paul
    ianal


  7. #7
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    Default Why do employers protest unemployment claims

    In article <a7ro82hhcaolfdidp3iqrjgem622mqsakv@4ax.com>,
    <apirion@gmail.com> wrote:
    Have no knowledge of unemployment system. Don't understand how itwould hurt an employer to have a former employee be approved for UIbenefits -- how does it hurt them? As I understand it, they will doalmost anything to try to block an unemployment claim. ?
    This is not a question of law', but one of 'economics'.

    There is a simple answer. "MONEY".

    Employers pay unemployment taxes based on the number of claims they've
    had against them in the last several years.

    I have knowledge of one situation where a single unemployment claim would
    have _quadrupled_, for the next three years, the UI taxes paid by a small
    company.

    UI is intended to cover ONLY the situation where the employee is let go
    *though*no*fault* of the employee. If you voluntarily quit, you're not
    eligible for unemployment benefits. If you are fired 'for cause', you're
    not eligible.




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    Default Why do employers protest unemployment claims

    apirion@gmail.com wrote:
    Have no knowledge of unemployment system. Don't understand how it would hurt an employer to have a former employee be approved for UI benefits -- how does it hurt them? As I understand it, they will do almost anything to try to block an unemployment claim. ?
    In most states' systems, the former employer has to pay all or part of
    the benefits to the former employee if unemployment benefits are
    granted. At the very least, they have to pay premiums for an
    unemployment insurance policy which will likely go up if they have a
    lot of claims. That is the main incentive employers have to protest
    unemployment claims. Of course they are also supposed to have a
    legitimate reason under the law to deny benefits, e.g. that the
    employee quit voluntarily, or was fired for cause (theft, etc).

    --
    This posting is for discussion purposes, not professional advice.
    Anything you post on this Newsgroup is public information.
    I am not your lawyer, and you are not my client in any specific legal
    matter.
    For confidential professional advice, consult your own lawyer in a
    private communication.
    Mike Jacobs
    LAW OFFICE OF W. MICHAEL JACOBS
    10440 Little Patuxent Pkwy #300
    Columbia, MD 21044
    (tel) 410-740-5685 (fax) 410-740-4300


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    Default Why do employers protest unemployment claims

    In article <a7ro82hhcaolfdidp3iqrjgem622mqsakv@4ax.com>, apirion@gmail.com
    wrote:
    Have no knowledge of unemployment system. Don't understand how it would hurt an employer to have a former employee be approved for UI benefits -- how does it hurt them? As I understand it, they will do almost anything to try to block an unemployment claim. ?
    For thing, the rate of the UC payroll tax paid by the employer is determined at
    least in part by the number of successful claims against the employer.
    --
    D.F. Manno | dfmanno@mail.com
    It is one of the maladies of our age to profess a frenzied allegiance to
    truth in unimportant matters, to refuse consistently to face her where
    graver issues are at stake. -Janos Arany, poet (1817-1882)

    Inviato da X-Privat.Org - Registrazione gratuita
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    Default Why do employers protest unemployment claims

    apirion@gmail.com writes:
    Have no knowledge of unemployment system. Don't understand how it would hurt an employer to have a former employee be approved for UI benefits -- how does it hurt them?
    It increases what they have to pay into the state's unemployment fund.

    --
    Rich Carreiro rlcarr@animato.arlington.ma.us


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    Default Why do employers protest unemployment claims

    apirion@gmail.com wrote:
    Have no knowledge of unemployment system. Don't understand how it would hurt an employer to have a former employee be approved for UI benefits -- how does it hurt them? As I understand it, they will do almost anything to try to block an unemployment claim. ?
    To put it simply:

    UI = Unemployment INSURANCE. If an employer has claims against this, the
    rates go up, and the employer ends up paying more. So, they fight claims
    so that their rates don't go up.


    --
    "The most convoluted explanation that fits all the available and made-up
    facts is the most likely to be believed by conspiracy theorists"


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    Default Why do employers protest unemployment claims

    In article <ufoq82t4qu480n9n1rqt5v0fso23611c27@4ax.com>,
    Robert Bonomi <bonomi@host122.r-bonomi.com> wrote:
    UI is intended to cover ONLY the situation where the employee is let go*though*no*fault* of the employee. If you voluntarily quit, you're noteligible for unemployment benefits. If you are fired 'for cause', you'renot eligible.
    Though I've read (here?) about one abusive case: employee was fired
    for stealing, denied Unemployment. She then got a seasonal job,
    worked for a month and was laid off. The Unemployment from the
    seasonal job covered her first month of benefits, then they went after
    the employer she stole from for the rest (increasing his premiums,
    rather than a direct charge), and there was no way he could fight it.

    Seth


  13. #13
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    Default Why do employers protest unemployment claims

    Gordon Burditt <gordonb.m789e@burditt.org> wrote:
    Have no knowledge of unemployment system. Don't understand how itwould hurt an employer to have a former employee be approved for UIbenefits -- how does it hurt them? As I understand it, they will doalmost anything to try to block an unemployment claim. ?
    Doesn't the employer essentially PAY the unemployment benefits for workers they laid off? Or most of them? I don't mean in a general way that employers pay for unemployment benefits, I mean that Joe Schmoe, former employee of XYZ Corp, getting approved for $5K in unemployment benefits costs XYZ Corp about $5K. And if Joe Schmoe quit rather than being laid off, that's $5K XYZ Corp. shouldn't have to pay.
    Or do I misunderstand how it works? I'm describing how I believe it works in Texas.
    No, they don't pay the full amount. It's "unemployment insurance" and thus
    they pay a premium. But, as for any insurance, having claims on it will
    increase the premium and thus cost the employer more money so of course
    they'll try and avoid the claim. At least that's how it works in all states
    that I've had to deal with it in but Texas may be different.

    --
    Mike

    -------------------------------
    "Our enemies are innovative and resourceful, and so are we. They never stop
    thinking about new ways to harm our country and our people, and neither do
    we," George W. "Shrub" Bush Aug 5, 2004


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    Default Why do employers protest unemployment claims

    In article <srd0925jd97h6a17abliju31uu72ft13kc@4ax.com>,
    Seth Breidbart <sethb@panix.com> wrote:
    In article <ufoq82t4qu480n9n1rqt5v0fso23611c27@4ax.com>,Rober t Bonomi <bonomi@host122.r-bonomi.com> wrote:
    UI is intended to cover ONLY the situation where the employee is let go*though*no*fault* of the employee. If you voluntarily quit, you're noteligible for unemployment benefits. If you are fired 'for cause', you'renot eligible.
    Though I've read (here?) about one abusive case: employee was firedfor stealing, denied Unemployment. She then got a seasonal job,worked for a month and was laid off. The Unemployment from theseasonal job covered her first month of benefits, then they went afterthe employer she stole from for the rest (increasing his premiums,rather than a direct charge), and there was no way he could fight it.

    On the other hand, I have knowledge of a situation where:
    1) employee voluntarily left company A to take a position w/ company B
    2) several months later, 'A' gets notice from State unemployment agency
    that said former employee has filed for unemployment benefits, and
    'A' is being given opportunity to contest the claim -- response required
    within xx days, or claim would be approved.
    3) due to internal mix-up at 'A', response was _not_ submitted within the
    required time-frame.
    4) less than a week _after_ that deadline, a response _was_ filed, ack-
    nowledging that it was _not_ a 'timely response', but that there were
    matters that the unemployment office 'should' be made aware of. Stating
    that said employee had *voluntarily* left company 'A', for employment at
    company 'B', as of such-and-such date. And that said (former employee)
    had been contacted _at_that_employer_, after that date. That if
    'company B' was not mentioned in the UI filing, there was a possible
    attempt to defraud the system involved.

    *MOST* interestingly, a few weeks later, a communication was received from
    the State Unemployment office, stating: "Although the response was not
    received in a timely manner, upon review of the information provided,
    this claim will not be charged against Company 'A'."

    Exactly what went on with that filing, nobody at Company 'A' knows. After
    that last missive, though, speculation was, as they say, "rife".


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    Default Why do employers protest unemployment claims


    apirion@gmail.com wrote:
    Have no knowledge of unemployment system. Don't understand how it would hurt an employer to have a former employee be approved for UI benefits -- how does it hurt them? As I understand it, they will do almost anything to try to block an unemployment claim. ?
    I apologize if any of this information is redundant...I didn't read all
    the responses to your post. Here is a brief overview of unemployment
    insurance:

    Unemployment insurance is funded through 2 payroll taxes - one state
    (SUI), and one federal (FUI). The rate of the tax is based upon
    "experience", meaning that the more claims charged to an employers
    account, the higher "experience rating" and subsequent tax rate will
    be. How much are we talking about here? Well, in my state (Michigan)
    the tax can be over 10% of your payroll for the first $9,000 of
    earnings per employee. The federal rate is less.

    So it certainly is in the employer's best interest to protest the claim
    of an employee who *may not* be eligible to receive benefits.
    Generally speaking, employees who are disqualified for benefits include
    employees who voluntarily quit or are terminated for gross misconduct.
    Each state has their own criteria and it's up to the employer to
    monitor all charges against their account.

    Hope this helps.
    Korey


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    Default

    1. Does the amount my ex-employer's premium goes up depend on whether I collect benefits for 1 month vs. 6 months?

    2. Is it legal for my ex-employer to pressure me into finding a job sooner, e.g. by an implicit threat that my reference from him might not be as good if it takes me too long to find a job.

    Thanks.

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