Know Your State’s Unemployment Laws

Employers need to understand what unemployment benefits are available to former employees, what actions can disqualify a former employee from receiving benefits and how to navigate an unemployment insurance claim once it is filed. One important factor to keep in mind is that the premium for unemployment insurance is based in part on how many successful unemployment claims are filed against the company.

Unemployment laws vary from state to state. The author provides a list of things employers should know that are generally applicable, but cautions that all state’s laws and regulations have nuances that without preparation won’t become obvious until a former employee files a claim or your organization contests a claim.

Generally, a person needs to be “unemployed” in order to be eligible for benefits, but not always. If a former employee gets another job after involuntary separation from your company, and that other job is part-time, he or she could be classified as “underemployed” and could collect benefits, although at a reduced rate.

In making their determinations, unemployment insurance officials care about the last incident that led to termination, not previous ones. Among other points to keep in mind: Labeling someone who works on site, at hours and on projects prescribed by the business, as an “independent contractor” probably won’t fool an unemployment official who is determining eligibility, and it is not always the case that an employee who voluntarily leaves is ineligible to collect unemployment benefits.