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Unemployment Shenanigans: Claims Against the Wrong Employer

Unemployment benefit claim denied

Unemployment claims can take up valuable time and affect your bottom line. That’s why it’s important to stay on top of claims and respond to any that are made in error or that contain inaccurate information.

Beware of claims against the wrong employer
When a former employee applies for unemployment, the employer will receive notification of a claim and have a chance to respond to it. Incorrect information may be challenged, such as when former employees list the wrong employer on their application for unemployment.

One situation we personally experienced involved a former employee claiming unemployment after only working two hours for Marathon before quitting. We would call this an Unemployment Shenanigan because she walked off the job on her own accord and wasn’t terminated. As a reminder, unemployment compensation is intended for those who lose their jobs involuntarily, not those who voluntarily quit a job or are fired for performance issues. Therefore, any true unemployment claim needed to be directed to her former employer, not a company for whom she only worked two hours.

Claims can be costly
It is in employers’ best interests to appeal any unwarranted claims because their unemployment insurance (UI) tax rate goes up based on the number of former employees receiving benefits.

In our case, the claimant who voluntarily left after working only two hours and earning only $26.25 in employment with Marathon was awarded $8,502 in maximum benefits due to “lack of work.” However, we had eight days to respond to and challenge the claim. A hearing was scheduled, which the claimant didn’t attend, and the claim was remanded back to the Department of Labor. The correct former employer for the claim was identified and it was determined that the Marathon UI account would not be charged.

If you receive notification of a claim, MarathonHR can help you verify its details, including the details surrounding the event that caused the claim, and pursue the appeals process if necessary.

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