Construction companies know that they have to reduce costs wherever they can to survive in this competitive industry. Accomplishing this goal can become difficult when a former employee files for unemployment benefits that raise your insurance costs. In this two-part article, a Central FL construction lawyer will detail what construction firms should do when faced with an unemployment claim. The Central FL construction lawyers at Cotney Construction Law are always here to help whenever your company is facing a trying legal decision.
What Is an Unemployment Claim?
An unemployment claim is a plea that a former employee can make to the state government to receive temporary funds while they actively search for new employment. In order to qualify for unemployment benefits, an employee must have been laid off through no fault of their own. In Florida, an employee may still be eligible for benefits if they were either let go for performance issues or quit due to illness, disability, or a good personal reason.
How Unemployment Claims Impact Construction Firms
When a former employee’s unemployment claim is approved by the State of Florida, your company ultimately pays for it. Unemployment benefits are funded through your reemployment taxes, which are paid to the Florida Unemployment Compensation Trust Fund. You will be paying more in taxes as a direct result of your former employees being approved for unemployment benefits. Higher tax rates could easily cost employers tens of thousands of dollars a year. Employers who wish to keep their tax rates low will need to be on the lookout for claim determinations that should be appealed.
Receiving a Notice of Claim Filed
If you’re reading this article, chances are you’ve received a Notice of Claim Filed. In addition to notifying you that a former employee has applied for unemployment benefits, this notice requests information regarding the claimant’s work history. The claim may also be investigated through writing, online, or over the phone. In order to protect your tax rate, it is imperative that you promptly, completely, and honestly respond to these requests for information. This will ensure that you are in the best position possible if you wish to contest an adverse determination. As we’ll see in part two, deciding to accept or contest an unemployment claim determination is a decision with potentially far-reaching legal and monetary consequences. For expert advice on how to reduce and address unemployment claims, consult with a Central FL construction lawyer at Cotney Construction Law.
For more information on contesting unemployment claims, read part two.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.