Provided by: Judge Ruth B. Kraft
February 13, 2013
Dear Judge Ruth: I use a payroll services company which deducts a token amount each week for unemployment insurance defense work but I lose every time. What would be the difference between letting them continue to handle these matters and using you? CFO
Dear CFO: Thanks for a great question! Sometimes, unfortunately, you get what you pay for. Many unemployment cases are not winnable for the employer and there are a lot of misconceptions about what constitutes good cause to disqualify a former worker from receiving benefits. The clerks at these companies do not know the difference between a case that is worth defending and one that is not. This means that you may find yourself taking time away from your business (and needing to bring along other employees as witnesses) for a case you can’t win, which is a waste of your resources. Additionally, a key part of prevailing in any legal matter begins at the beginning: the point at which you receive a notice of claim from the Department of Labor and, later, the determination of eligibility or disqualification. When the payroll company is the designated addressee of correspondence from the Department, you literally have abdicated control of the case from step one. The first response sets the stage for review of the matter so a failure to respond timely or an incomplete response does not serve your interests. Often, the payroll company will call its opposite number in your firm, typically an HR clerk, rather than getting first hand accounts of the circumstances that resulted in the discharge or quit. It will pass this vague or inaccurate information on to the Department, creating a subsequent burden on the employer to explain any inconsistency.
There is a second, equally important reason to consult with counsel. Many employers do not realize that their existing policies and disciplinary rules are outdated, insufficient or inconsistently applied, making it all but impossible for them to win in UI hearings. A simple inquiry about a case may reveal these issues and an employment law attorney will be able to make recommendations, some quite simple and easy to implement, to improve your processes and reduce potential liability.
Employment law is changing at such a rapid pace that even the smallest tidbit of legal advice can be of prospective benefit to you.
Have a question or comment?
Contact Jennifer at Jennifer@Kirschenbaumesq.com or at (516) 747-6700 x. 302.