An unemployment claim doesn’t have to be a foregone conclusion. While many claims are valid, those arising from clear misconduct or voluntary resignation represent a critical opportunity for employers to defend their practices, protect their bottom line, and reinforce their company culture.
Contesting these specific claims is not just a right, but a strategic necessity. Failing to do so can trigger significant and avoidable consequences, from higher unemployment tax rates to a drain on administrative resources. This guide provides a practical framework for building a defensible position long before a claim is ever filed, turning a compliance burden into a strategic advantage.
The Unavoidable Reality: Preparing for Employee Separations
In a stable labor market, such as the one reflected in the June 2025 jobs report from the United States Bureau of Labor Statistics (4.1% unemployment), employee separations are an unavoidable part of business operations. The critical question for every employer is not if a separation will occur, but how prepared the organization will be when it does. Being ready for a potential unemployment claim is a constant necessity.
The Strategic Payoff: From Financial Savings to a Stronger Culture
A proactive approach to employee documentation offers significant strategic advantages. While employers aren’t formally “awarded” in unemployment hearings, a favorable decision protects the bottom line by saving thousands in unemployment insurance taxes and serves as a powerful validation of the company’s internal processes.
More importantly, this diligence cultivates a culture of fairness and accountability. When employees see that treatment is fair, expectations are transparent, and terminations are handled professionally, they are less likely to file unwarranted claims. This reinforces the importance of performance and conduct standards across the entire organization, strengthening the business from within.
The Pillars of a Strong Defense
So, what is the key to achieving these outcomes? It comes down to two pillars that support a strong defense long before a claim is ever filed: robust internal policies and meticulous, consistent documentation. In any hearing, the evidence you have gathered over time is your most powerful asset.
Best Practices for Employers
- Maintain a detailed employee handbook and regularly update it.
- Train supervisors and managers in proper documentation and disciplinary processes.
- Hold employees accountable consistently, regardless of tenure or role.
- Document all interactions related to warnings, counseling, and performance improvement plans.
- Attend every unemployment hearing and be prepared with evidence and witnesses when necessary.
From Theory to Practice: A Case Study
We pride ourselves on delivering not only exceptional service to our clients but also maintaining a strong, fair, and consistent workplace culture for our candidates.
That commitment was recently tested when we faced an unemployment claim filed by a former employee who had been terminated for repeated policy violations.
The employee claimed the termination was unjustified, and we were scheduled for an unemployment hearing to determine whether they were eligible for benefits. While we respect every former team member’s right to file a claim, we were confident in the integrity of our actions.
The Situation
The former employee had been counseled multiple times for issues including tardiness, unprofessional communication with customers, and failure to adhere to call handling procedures. Each instance was documented thoroughly, with performance improvement plans (PIPs) and signed acknowledgments. Despite coaching and support, the behavior continued over several months, leading to a final written warning and, eventually, termination.
Our Process
- A clearly defined employee handbook with signed acknowledgments
- Detailed documentation of infractions, including dates, manager notes, and employee responses
- Evidence of progressive discipline, starting with verbal coaching and escalating as necessary
- Records showing that the same process was followed for other employees in similar situations, demonstrating fairness and non-discrimination
The Outcome
The unemployment hearing officer reviewed the evidence and ruled in our favor. The decision stated that the company had acted with just cause and had provided the employee with ample opportunity to improve. The ruling also praised the company’s clear documentation and consistent enforcement of policies, which were key in supporting the termination decision.
The Takeaway
This experience reinforced the value of well-written policies, thorough documentation, and consistent enforcement. We believe that treating employees fairly and holding everyone to the same standards is not only good for business, but also the right thing to do.
By standing firm in our commitment to process and fairness, we not only protected the company from an unjust claim but also affirmed the integrity of our internal practices. It was a proud moment that reminded us that when policies are more than just paperwork, they become the foundation for strong, ethical business decisions.
From Policy to Principle
While the primary purpose of unemployment insurance is to support workers who lose their jobs through no fault of their own, the system also allows employers to protect themselves from unwarranted claims. Those who prioritize solid policies, enforce them fairly, and remain consistent in their employment practices are more likely to be rewarded—not just in hearings, but in building a stronger, more compliant company.
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Alonzo Hankerson, Director of Human Resource for Abel Personnel with over 20 years of HR management experience. Mr. Hankerson is knowledgeable in employment practices and workforce challenges. He works with staff and clients to craft solid employment practices wellness plans tailored to address an organization’s needs and concerns.