Unemployment benefits exist to provide short-term financial relief to individuals who are out of work through no fault of their own. Even when you believe the termination was justified, fighting a claim can cost more in time, energy, and potential legal exposure than it’s worth.
Employees denied unemployment are often frustrated, angry, and more likely to:
- File a wrongful termination, retaliation, or discrimination claim.
- Lodge a complaint with the Labor Commissioner or EEOC.
- Write negative reviews that damage your brand and recruiting efforts.
In essence, contesting a few hundred dollars a week in benefits could result in tens of thousands in legal fees—or long-term reputational harm.
What Are You Really Proving?
Unemployment hearings don’t follow the same legal standards as court proceedings. The threshold to disqualify someone from receiving benefits is high, and the burden of proof falls on the employer. Unless you have clear, documented evidence of gross misconduct, most claims will be approved.
Fighting the claim simply to “make a point” or “send a message” rarely works—and can backfire.
Preserve Goodwill and Move On
Most employers benefit from taking a more measured approach:
- Save your documentation and focus on protecting your business if a legal claim arises.
- Let the former employee receive their benefits and move forward.
- Focus your energy on supporting your current team and building a healthy work culture.
In short, be thoughtful about which battles are worth fighting. Often, letting go of the need to “win” an unemployment claim can help you truly win in the long run—by reducing risk, preserving reputation, and keeping focus where it belongs: growing your business.
Want help navigating terminations and unemployment best practices? SDEA can support you with compliance guidance, documentation templates, and coaching tailored to your business. Call us at 858-505-0024 or visit our website www.sdeahr.org.
