Thursday, February 12, 2009
When someone gets laid off
Their former employer saves the salary and benefits costs, but their bill for the unemployment pool gets a little bigger. In the grand tradition of the Party of Hoover, some companies have decided to pull a fast shuffle on their ex-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.Times are tough but there is reason to be heartless as well, unless you are a Republican.
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.
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Most people I know including myself have had success when there is a hearing but it's a real pain in the ass.
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