Quote:
Originally Posted by Rabrrita
Unemployment is one of the cheapest administrative process for an employer to participate in. Employers do not "settle" and in the majority of cases, they do contest the unemployment. Whenever an employees claim is successful (by adjudication or default) the employers unemployment tax rate rises or their reserve account is assessed the funds. That means they can end up paying a sizable amount for any claim that is paid. That is why they don't "settle" to save money and normally fight claims. There is an entire industry built only on fighting employee unemployment claims.
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I am well aware of how the unemployment system works...I have participated in literally hundreds of them as the employers representative. Most of the companies I represent fight all of the unemployment claims which are considered frivolous.
If you have never participated in these hearings, "tribunals" or whatever you want to call them, the process is pretty straight forward. First step is the written evidence gathering with a decision made by an employee of the State usually heavily biased in favor of the employee. Second step is written appeal, followed by a phone hearing. This is where you get past the biased state employee to someone who is bound by the letter of the law. Third, is an appeal to the district court....I've only had to do a handful of those b/c we very seldom lose at the initial appeal level. The district court appeal can easily be more costly than the claim itself....especially if the claimant hires an attorney.
My companies do not settle though, they fight them all when they are standing on solid principal...When a person's claim is legitimate, there is nothing to do at all....just fill out the form and the employee gets Unemployment.