questionswhat does an unemployment claim cost the employer?


I thought you couldn't collect unemployment if you were fired. Maybe there's just a waiting period? I know that everyone's favorite (former) HR person, @belyndag, might have ideas. It may differ state by state, but I'm pretty sure that when you make a claim for unemployment, that it was insurance that you paid into, and that your employer also paid into.

Here's an informative Wikipedia page while you wait.


In Florida you can't successfully file for unemployment comp (what little there is of it, thanks to Gov. Gollum) if you were fired for cause or if you resigned your job.


@shrdlu: In my experience, most people can draw unemployment unless they were fired for gross misconduct. (And I mean GROSS misconduct!) Generally, you get fired, you apply for unemployment, and you start drawing the money before UI gathers any feedback from your former employer, anyway. If the employer chooses to fight it (and it's often not worth the time and expense to do so), you continue to draw unemployment while the case is under review. In theory, if it is eventually determined that you should not be receiving the money, UI is supposed to recoup it from you, but I have never seen this happen. Again, it's just not worth the time and expense. (And you have probably spent it all on bills by this time, anyway.)

The initial question was about what the impact of someone collecting unemployment payments would have on the employer. One of the reasons most employers do not fight it is that the impact is minimal unless turnover is INCREDIBLY high.


@magic cave: Anyone happen to know if you can do this in the grand ol' state of California? :P



(You will probably find that the rules are much stricter in CA.)

I'm going to try to beat the edit window.


@cowboydann: Missed my window. Please see the following (URL above):

1256. An individual is disqualified for unemployment compensation
benefits if the director finds that he or she left his or her most
recent work voluntarily without good cause or that he or she has been
discharged for misconduct connected with his or her most recent
An individual is presumed to have been discharged for reasons
other than misconduct in connection with his or her work and not to
have voluntarily left his or her work without good cause unless his
or her employer has given written notice to the contrary to the
department as provided in Section 1327, setting forth facts
sufficient to overcome the presumption. The presumption provided by
this section is rebuttable.
An individual whose employment is terminated under the compulsory
retirement provisions of a collective bargaining agreement to which
the employer is a party, shall not be deemed to have left his or her
work without good cause.


Following up on @shrdlu 's always reliable info: I speak only of Florida, but it's worth looking into elsewhere. Most jobs have a 90-day or so probationary period in which a new employee can be let go for no reason at all. A very long time ago I took a new job and loathed it immediately. Apparently they felt much the same, because three weeks later they fired me, citing in the termination letter that the 90-day clause let them do so any or no reason.

For all I know, they said that intentionally, since the Unemployment folks glanced at the letter, grinned, said, "That makes it a lot easier," and approved me for unemployment compensation.

Here's the fun part, tied to the original question asked above: because my employment there had been so short, it was the Unemployment Liability account of my former employer that was debited for the payments. They challenged the decision, since I'd resigned from there, but the State law was very specific.

Maybe this helps in some way.


I do know that if your job description or conditions change (job function changes/you are forced to take a paycut/forced to take different hours etc...) you can quit and still collect unemployment (at least thats the case in SC) I know there are also a few conditions where you can get fired and still collect but i forgot what they were. I looked up all that information a few months ago when things were rocky at work and i had to report my manager to HR. i made sure to cover all my bases in case i got let go.


As mentioned above, it's the other way around. There are few reasons that getting fired will not result in you being able to collect (like if you're fired for being too touchy, for example). If you get fired because you failed to do your job correctly, you can still collect.


A company's unemployment insurance premiums are based partially on their "experience rating" - basically, the more claims that are made by that company's previous employees, the higher the premium is. Like car insurance - if you crash a lot, your insurance goes up. So, more claims = higher premiums.


My unemployment rate is 2.40% of gross payroll. It usually equates to between $6,800 and $10,000 out of pocket per quarter. All employers here in NV begin at 3% "experience rating" as others have mentioned, with less claims, smaller percentage. It has taken roughly 4 years to come down this .6% but it makes a big difference. In addition to that, NV borrowed (and continues to borrow) money from the Federal unemployment (which employers are also required to pay in to but at a much smaller rate) which they had to begin paying back this year. This resulted in what they call a "temporary assessment" which brought an additional $1600 burden on us this spring to cover the interest on borrowed money. I watch our UI claims closely and make sure they get denied wherever appropriate.


Not an answer to the original question, but to the conversation that developed in the comments - You absolutely CAN generally collect unemployment if you are fired (unless you are fired for cause, like criminal activity), but you cannot generally collect unemployment if you quit.

There are always some exceptions to general rules, and laws will vary by state, but that's the cliff notes version.