Unemployment facts summary

• Unemployment benefits are financed by employers.
• The state unemployment agency will pay those unemployed workers (with sufficient qualified wage credits) who are judged to be out of work through no fault of their own.
• The employer often can protect against unemployment charges by proving that there was knowledge, culpability and control.
• The employer often can protect against unemployment charges by proving that workers who voluntarily quit were given reasonable assistance in trying to solve their problems prior to quitting.
• The moving party generally has the burden of proving that he or she was justified in ending the employment relationship.
• Documentation containing facts, rather than conclusions, will enhance an employer's chances of proving their case.
• Have witnesses with personal information about the facts appear as witnesses at all unemployment hearings.  Appeal to the Board of Review (or Commission) if you don't agree with the judge.
• Don't assume that the charges made against your account are correct.  They should be compared to the claim determinations.  Protest any charges where the charges should have been removed or where the amount exceeds the potential liability on the claim.
• You have the option of paying excess contributions for the purpose of buying down your tax rate in some states.
• When one tax paying employer acquires another tax paying entity (or even a portion of an entity) they should review the unemployment tax rate implications of combining the two tax rates.

Disclaimer:  The information contained in the examples given on this page is general in nature and is not intended as legal advice.  There are no guarantees that a particular state unemployment adjudicator will rule as others have in the cited examples.  Individuals seeking legal advice concerning the handling of similar matters should consult with their attorney, rather than relying upon the information given.

The purpose of this document is to educate clients and potential clients about unemployment compensation. While some effort has been made to address the many differences in laws and procedures in the 53 different jurisdictions (each of the fifty states plus Puerto Rico, Washington D.C. and the Virgin Islands), the primary purpose of this presentation is to review some basic principles shared by many jurisdictions.