The EDD does not question the employerâ??s right to discharge an employee, or the employeeâ??s right to quit. The EDD is looking beyond that question to whether or not the circumstances of the separation fit the requirements of the UI code. The wording of separation documents is critical. There is a great distinction in the UI code as to whether the reason for separation can be defined as the claimantâ??s inability to perform the work or a â??willful and wanton disregard of the employer’s interests.â? Here are some things to keep in mind.

UI Guidelines
Never give false or inaccurate information to the EDD. Claimantâ??s can get False Statement Penalties, but employerâ??s can get False Statement penalties up to 10 times the claimantâ??s weekly benefit amount. If the claimant makes a false statement to the EDD, make the EDD aware of it. If you get a Notice of Potential False Statement Liability, appeal it.

Donâ??t misclassify employees as independent contractors, the penalties involved here will go way beyond paying UI claims.

Always respond to the initial claim form even if you agree with the claimantâ??s reasons. If you donâ??t respond to the claim on a timely basis, you are not considered â??an interested party.â? Therefore, if you later disagree with any charges from that personâ??s claim, you have no rights to object to the charges.

Complete all EDD forms if there is money involved and you feel you have a right to relief of charges. You will not get relief if you donâ??t. Make sure to include all supporting documentation including the DE 1545 along with your protest.

The EDD will send such forms as DE 4614, DE 428, DE 2088, Notice of Potential False Statement, Notice of Potential Tax Liability, and Notice of Denial of Petition. Failure to appeal any of them within the time limit is costly. You can appeal any ruling against you and the effort can result in substantial savings to your account.

There are several reasons where an employer may be relieved of charges even if the claimant is collecting UI benefits.
â?¢ Did the claimant leave to accompany a spouse or domestic partner?
â?¢ Was it because of domestic violence?
â?¢ Was the use alcohol or drugs involved?
â?¢ Did the employee leave your company for another job?
â?¢ Was the claimant a student returning to school or on a work/study program?
â?¢ Have you offered work to a past employee currently collecting UI benefits?
â?¢ Is the past employee caring for children or some other individual that precludes them from accepting work?

Do not assume that short-term employees donâ??t cost you any money for unemployment insurance. Every dollar someone earns in wages contributes to potential liability on your reserve account. It’s just as important to do the documentation on a short-term employee as it is for an employee who has worked for you longer.

If an employee quits, but you want the person off your property prior to the effective day of the resignation, give serious thought to paying the employee through the time of notice. If not, the separation is considered a discharge, and the employee would be eligible for unemployment insurance benefits.

Hearings
â?¢ Read the instructions on all forms, including the Notice of Hearing.
â?¢ Have your facts in order and available for when the EDD adjudicator calls for more information about a past employee.
â?¢ Ask the EDD representative for the EDD their fax number or email. Thatâ??s where you should send supporting documentation, so you know the decision maker will see it.
â?¢ Go to the hearing.
â?¢ Go with witnesses and documentation. You are not going to win if you donâ??t show up.

Remember, every dollar on a DE 1545 could mean the difference between paying the next higher rate or the next lower rate.

Human Resources 4U can help in responding to UI claims.

Human Resources 4U is a full service Human Resources consulting company specializing in small and midsize businesses. Note: This article is presented with the understanding that we are not engaged in rendering legal advice. If legal advice is required, the services of a competent attorney should be sought.