Benefits Claims Are Being Increasingly Challenged

It's hard enough to lose a job. But for a growing proportion of U.S. workers, the troubles really set in when they apply for unemployment benefits.

More than a quarter of people applying for such claims have their rights to the benefit challenged as employers increasingly act to block payouts to former workers.

The proportion of claims disputed by former employers and state agencies has reached record levels in recent years, according to the Labor Department numbers tallied by the Urban Institute.

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.

As unemployment rolls swell in the recession, many workers seem surprised to find their benefits challenged, their former bosses providing testimony against them. On one recent morning in what amounts to one of Maryland's unemployment courts, employees and employers squared off at conference tables to rehash reports of bad customer service, anger management and absenteeism.

Unemployment compensation programs are administered by the states and funded by payroll taxes that employers pay. In 2007, employers put up about $31.5 billion in such taxes, and those taxes typically rise during and after recessions, as states seek to replenish the funds.

When these current economic times get rough, laws forcing employers to do the right thing are increasingly being challenged. In a recent Washington Post article, the case of an electrician who was collecting unemployment benefits after losing his job at a Maryland hotel was being challenged by his ex-employer, the owners of the Gaylord National Resort and Convention Center. A Washington Post reporter showed up in the courtroom resulting in the ex-employer withdrawing their appeal to challenge the unemployment benefits.

Why is it that someone who is fired for a reason out of their control has to hold the threat of public attention to force a company to uphold their end of the legal bargain?

This illustrates yet another of America’s problems, people trying to bypass laws to keep money for themselves without regard to how it affects an innocent victim.

We are all in this together, none of us turned this economy sour and treating people like tools to be thrown away instead of keeping in mind they are trying to survive too is only going to prolong the recovery.

Another result of this behavior is trust and faith in your fellow man is being further eroded away. This life does not have to be dog eat dog.

Several things an employee needs to do is keep your nose clean, do what is asked of you as long as it falls within the purview of your job description and keep a record of requests by your employer that fall outside of those guidelines. This record can become invaluable if you are ever fired and your claim to unemployment benefits is subsequently challenged. Trust me, employers will keep a written record of your work history and will not hesitate to use it against you in an attempt to save them from having to pay out legal benefits.

Court rulings have slowly enlarged the definition of employee misconduct, making it easier for employers to say they rightfully fired a worker which equates to a higher standard of behavior for employees. This of course automatically puts the employee at a distinct disadvantage, so just don’t give the employer reasons to fire you.