Construction firms can find themselves paying increasingly costly taxes when their former employees are approved for unemployment benefits. In part one of this two-part article, we discussed how construction firms are adversely affected by unemployment claims. Now, a Hillsborough County construction lawyer will discuss when a construction firm should accept or contest an unemployment claim determination. As we’ll see, numerous factors go into making this decision, and sometimes the choice isn’t clear cut. Partner with the attorneys at Cotney Construction Law to ensure that your company makes the right choices regarding the legal challenges it may be facing.
When to Accept an Unemployment Claim
When an employee has a legitimate claim for unemployment benefits, it’s best that you don’t contest the determination. An employee’s claim is legitimate if they were laid off due to a company being in the wrong, lacking work, or having a financial setback. Once you’ve responded to the Notice of Claim Filed, no additional steps need to be taken on your part. While this choice may seem unfavorable, the State of Florida may still decide to reject a former employee’s unemployment claim.
When to Contest an Unemployment Claim
Unemployment claims that are unfounded can be successfully contested once an adverse determination has been reached. A determination may be successfully appealed for a number of reasons, including but not limited to if the former employee:
- Was an independent contractor
- Was fired for misconduct
- Quit without good cause
- Included false information in the claim
Employers wishing to file an appeal should still respond to the Notice of Claim Filed within 20 days to preserve their rights. In the State of Florida, you have 20 days from the date that the determination is mailed to appeal the decision.
Hire a Professional
There are a number of factors that must be taken into account before deciding how to handle an unemployment claim, especially when it comes to independent contractors. A former worker that you believe to be an independent contractor may be determined to be an employee in court. An approved claim may trigger a number of other former “independent contractors” to file unemployment claims of their own.
As we’ve covered previously, misclassifying a worker can result in severe penalties. With the possibility of a financial pitfall awaiting employers who fail to take action, your company must know how to respond to claim notices. To ensure that you are always prepared to face unemployment claims, partner with the Hillsborough County construction lawyers at Cotney Construction Law.
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.