How Staffing Firms Should Respond to an SUI Unemployment Claim

1. The Claims Process

The claims process begins when an employee files an unemployment claim with their state agency. Typically, an employee will file because of layoffs or downsizing, but sometimes employees who have been terminated with cause may also file.

The time period for claims filing varies from state to state. After a claim is made, then you, as the employer will be asked to provide employment, wage or salary information, plus details concerning the separation of employment.

If the termination of employment was with cause (e.g. employee misconduct), and the employee is still requesting benefits, your agency may dispute the claim at this time. Just be sure to do this in a timely manner or the employee may have their claim approved due to the delay.

2. The Appeals Process

Should the state agency approve the claim and you wish to dispute it, you will have a window in which to file an appeal. Be sure to note carefully when this time period is so that you stand the best chance of having the claim overturned.

Appeals generally require filling out specific forms and providing supporting documentation, which could include (but are not limited to) employee handbooks, disciplinary notices, resignation letters or exit interviews. The state agency will then review the appeal and make a determination on whether to approve or deny your appeal.

At this point, your business may request a hearing at which both parties—the employer and the former employee—must be present, either in person or by phone. In most cases, you will have the opportunity to present your case along with any supporting documentation or proof of termination with cause.

You may have the opportunity also to present and interview witnesses (such as an HR manager or other employee) or have an SUI hearing specialist or attorney present. Each state’s process is different, and you may have to go through multiple appeals before a final decision is made.

Bottom line: carefully note state requirements for each part of the appeals process, file all information on time and understand your rights as an employer in what can be a tense situation.

3. Always Respond!

Even if you believe that an unemployment case is an easy approval or denial, always respond to unemployment claims within your state’s statutory period. While this might seem like an extra step in your already busy day, it could save you serious cash in fines and penalties in the long run.

In some states, not only will it cost you money to ignore these claims, but you may also lose your right to appeal, have a hearing or even receive further notification of the claim process.

Your best bet when it comes to SUI claims is to simply develop an aggressively proactive approach to response, no matter how daunting it may seem. There are some tasks in your business you can re-order or re-prioritize, but this is one that always deserves speedy attention.

Many agencies are surprised to learn that there are outside services to administer the SUI claims process from start to finish.  Advance has relationships with several of these third-party providers.  It may make sense to contract with one of these services as a way to reduce HR time and cost.

4. How Do Temp Agencies Fight Unemployment Claims?

While the rules vary from state to state on fighting unemployment claims, there’s one consistent quality: employees must have lost their jobs through no fault of their own to qualify for unemployment insurance. Although it’s not easy to contest unwarranted unemployment claims, if you believe an employee is ineligible based on their conduct it’s worth it to try to fight it. Here are some things you can do to fight unemployment claims:

• Learn who is eligible. Eligibility varies for unemployment state by state. Generally, individuals must have worked for a designated time frame, lost the job through no fault of their own, and must be truly unemployed.
• Create a good work environment. As an employer, you want to make sure you’ve done everything possible to help employees succeed so they can’t shift responsibility for their failure to you. Make it hard to fail through training programs, staff meetings, etc.
• Give direct and clear warnings. Give your temporary employees detailed and direct feedback about their behavior and the consequences for it.
• Document everything. Start a paper trail right away, including having the employee sign the policy statements and handbooks.
• Respond promptly. When you receive an unemployment claim, answer it immediately. With the passing of the Unemployment Insurance Integrity Act in 2011, employers are required to respond to unemployment claims in a “timely and adequate matter.”

If your staffing agency requires assistance in this matter, contact us. We only work within the staffing industry and understand the unique concerns of your business. Request a free consultation with Advance Partners today.