Unemployment Compensation

Unemployment compensation is a joint federal-state program: states administer their own programs and set specific eligibility rules and benefit amounts, but must operate within guidelines established by federal law (the Social Security Act and the Federal Unemployment Tax Act).  In most states, an eligible employee is entitled to unemployment compensation when he has lost his job through no fault of his own.  An employee is generally disqualified from benefits if the employer can show the separation resulted from misconduct connected with the work, or if the employee voluntarily quit without good cause connected with the work — the specific standards and burdens of proof vary by state.

The main point human resource managers, supervisors and clerical staff should heed in handling unemployment compensation is to remember that documentation is the key to successfully managing most claims employers encounter.  It’s all based on sound employment principles of keeping detailed notes on the who, what, when, where, why and how of employment reviews, employee warnings, meetings, employee paperwork, performance reviews, job descriptions, employment policies and most especially the details surrounding ALL employee separations from employment.