Unemployment claims can be extremely expensive for your company. In some cases, former employees attempt to file claims that are unjustified. Some employers don’t fight these claims because they don’t realize how expensive these can be for their businesses. There are many steps you can take to prevent unemployment claims, especially unjustified claims, against your company.
You’re required to pay unemployment taxes on qualifying employees. When an employee files an unemployment claim and it is successful, your unemployment taxes will increase. That’s why an important part of labor law is learning how to avoid successful unemployment claims against them.
Any time an employee leaves your company, you’ll have to deal with the issue of unemployment benefits. It’s a good idea to work with an attorney to come up with a plan for managing employment so that you won’t have unexpected problems. If an employee quits in Arizona, he or she is not eligible for unemployment. The only exception is if the person quits for an excellent reason such as a hostile work environment or a health or safety threat.
Business law attorneys will advise you to document an employee’s behavior carefully before you terminate his or her employment. Be careful not to make the work situation hostile or overly difficult for the employee or you may make yourself vulnerable to a future claim or lawsuit. There are federal laws that protect employees against hostile work environments.
Instead, document performance problems with a system of warnings followed by termination. Your attorney can give you advice on how to structure a good warning system. Always follow the system unless the situation is very serious. In that case, contact your attorney. That way you have documented the cause for firing the employee. In some cases, an employee fired for cause may still be able to collect benefits, but through proper documentation, you have significantly lowered the chances.
If you lay off employees, they will be eligible to collect unemployment benefits after any severance pay you have provided has expired. Many companies provide laid off employees with job search services so that they are able to quickly find employment. This lowers the chances that they will file for unemployment benefits.