The termination of the employment relationship implicates the issue of unemployment insurance. Generally, employees who have been terminated through no fault of their own will be entitled to receive unemployment compensation, easing the burden associated with the loss of their job. The amount and duration of unemployment compensation depends on a number of factors, including the wages earned by the employee prior to termination and period of unemployment. At the present time, the maximum benefit is $430 per week.
On the other hand, employees who have been terminated for some level of misconduct are typically not entitled to receive unemployment compensation for varying periods of time, depending on the level of misconduct. The burden is on the employer to prove misconduct.
During his legal career, Marc has handled many unemployment compensation claims and appeals on behalf of both employers and employees. Both have a significant interest in the outcome. If unsuccessful in their unemployment compensation claim, employees will not be eligible to receive unemployment compensation until they earn a certain amount of wages in their next job.
Employers also have a significant interest in the unemployment process. For every successful unemployment claim filed by a former employee, an employer’s “experience rating” increases as does the employer’s annual unemployment tax burden. Employers with the worst ratings can pay more than $1,100 in annual unemployment insurance taxes per employee as compared to employers with the most favorable ratings, who pay less than $200.