The Washington Post has a great story today looking at how employers are fighting ex-employees’ unemployment claims in record numbers. Why? To save a few bucks on their unemployment insurance.
More than one in four unemployment-benefits claims were disputed by bosses in 2007, well above the levels of fifteen or twenty years ago. Here’s some background
Under state and federal laws, employees who are fired for misbehavior or quit voluntarily are ineligible for unemployment compensation. When jobless claims are blocked, employers save money because their unemployment insurance rates are based on the amount of the benefits their workers collect.
The Post scores a fantastic anecdote about how Gaylord Hotels, a public hotel chain, was trying to stop an ex-employee’s meager $380-a-week benefits. First the sympathy setup:
“I couldn’t believe it,” said Kenneth M. Brown, who lost his job as a hotel electrician in October…
“A big corporation like that… . It was hard enough to be terminated,” he said. “But for them to try to take away the unemployment benefits — I just thought that was heartless.”
Then the dropkick:
After a Post reporter turned up at the hearing, the hotel’s representative withdrew the appeal and declined to comment. A hotel spokesperson later said the company does not comment on legal matters. Brown will continue to collect benefits, which he, his wife and three young children rely on to make monthly mortgage payments on their Upper Marlboro home.
Boom! SuperPost crusades for justice and scores one for the little guy. Or turns on the lamp and watches the rats scamper. Whatever.
Back to the story: Who knew about this cottage industry that’s sprung up?
The cost of unemployment insurance has created an industry of “third-party agents” — companies that specialize in helping employers deal with the unemployment insurance administration. These firms represent employers in disputes with former employees over jobless benefits.
The Post brings in the expert who has important data:
Wayne Vroman, a researcher at the Urban Institute, has documented the rise of challenges to unemployment claims using the Labor Department data. He found that the proportion of claims challenged on the basis of misconduct has more than doubled, to 16 percent, since the late 1980s. Claims disputed on the grounds that the worker simply quit represent about 10 percent of the otherwise eligible applications.
Even as more employers have alleged employee misconduct, their success rate has stayed relatively stable — they lose on such issues about two-thirds of the time.
And I’m sure those numbers rose last year and will this year, too.
The story ends with examples of some of the claims employers are making to block unemployment benefits:
With employees and employers as adversaries, it’s often difficult to determine the facts of a case, and just as difficult at times to separate misconduct from incompetence, which is not a reason to withhold the benefits.
During a day of hearings this week in Wheaton, human resources personnel sat across tables from former employees, and the discussion often turned to written warnings, company handbooks and who-told-what-to-whom.
A former assistant manager at Ri Ra, an Irish Bar in Bethesda, fended off complaints that, among other things, he’d failed to greet guests at the door and one time poured a beer for himself after hours.
A Verizon technician was charged with, in company terms, “detour and frolic.”
And a former salesman at Ethan Allen complained that there was no way he could have made his $35,000 sales quota — and that’s why he quit.
Just a superb job by the Post here.
I recently was let go from Fairview Township after 6 years as there Building Inspector.
Sometime during 2007 a check which is always mailed by by The Township for the renewal of my inspections certifications was either misplaced or forgotten to be mailed and the the state of PA. revoked my right to perform inspections here in PA. I know I asked to have it mailed to PA. Department Of Labor and Industry. When I found out the mistake was made I called Ms. Susan Wilkinson (Department of Labor and Industry State of Pennsylvania) she promptly told me "SHE WAS THE LAW NOW "and I was no longer able to work in "HER STATE " I would have to retest for all my Certifications. This mistake was made in 2007 and she would have never known if someone didn't tell her. Well in a matter of 5 minutes for $50.00 she took away my livelihood, benefits, pension and all the other things I had worked 6 years for. Not one person should be able at make this type of decision, rules are there for people who abuse them. No one the Township building even stood up for me. I'm 59 years old and I was told I had 20 days to retest and get my certs back. This is impossible and Mr. Smith the new township Manager knew it. Yesterday I got a determination letter from PA. unemployment stating I was refused benefits do to section 402(e), which states I was in violation of willing miss conduct. Which confuses me completely. The other reason was section 402(b) which states I quit for no good reason which is also not true because I was given 2 letters saying I had 20 Calendar to get new certs or I would be let go. The tests take a 2 day course and a min of 1 week studying to prepare for the exam. Mr. Smith was well a where I was being treated by my Dr. for HDAD and that I was having a hard time with Diabetes. I feel at the least since the State didn't send out any notice of renewal fees being due which every other Building Certification Firm does and also gives a 6 year grace period should sometime like this happen, the fact that my age and medical conditions at least should of been taken into consideration. With today's economy and the population aging you would think The State Governments (PA.) would be trying to help people.
I'm a single dad with 2 children who at 59 can not feed them or keep them warm. I can't get help with heating oil or electric We are being evicted on the 1st of March. All because the State of PA. can't seem to live without $50.00
Dave Draper
Shuler Road
Etters PA. 17319
(717) 303-5000
#1 Posted by David W Draper, CJR on Wed 25 Feb 2009 at 03:43 PM
I'm so sorry to hear your story. I myself am in a similar situation where the department of labor and superior court denied me unemployment.... I am going to appeal to the court of appeals and if I don't win there I will appeal to the supreme court
#2 Posted by Thats awful, CJR on Thu 24 Jun 2010 at 07:07 PM