A common challenge in managing unemployment claims tied to discharges is proving that misconduct led to an employee’s termination. Misconduct is a nuanced area in unemployment law, requiring clear evidence and thorough documentation to justify a denial of benefits.
Understanding how misconduct is defined, what it does not include, and the documentation needed for a successful claim is critical for employers.
What is Misconduct?
To disqualify a claimant from receiving unemployment benefits, the termination must be due to misconduct under unemployment law. By definition, misconduct involves a wanton or willful disregard of the employer’s best interests.
While not exhaustive, the following actions typically qualify as misconduct:
- Deliberate violation of company policies.
- Intentional and substantial disregard for the employer’s interests.
- Negligence to such a degree or recurrence that it reflects culpability, wrongful intent, or malice.
However, not all performance issues or terminations qualify as misconduct. State unemployment agencies generally do not consider the following misconduct:
- Good faith errors in judgment.
- Errors in the exercise of discretion.
- Unintentional inefficiency.
- Lack of ability.
- Isolated incidents of poor judgment.
Best Practices for Documenting Misconduct
When evaluating misconduct, state unemployment agencies rely on detailed and accurate documentation. In discharge cases, the employer carries the burden of proof and must demonstrate that misconduct occurred.
The following best practices can help build a strong case:
- Document the Final Incident
Provide a thorough and specific account of the final incident leading to termination. Include:
- Date, time, and location of the incident.
- Individuals involved.
- Exact description of the behavior or policy violation.
Whenever possible, include witness statements with firsthand accounts to support your case and clarify disputed details.
- Provide Employment History
Include relevant details about the claimant’s employment, such as:
- First and last day worked.
- Position or job title.
- Job description.
- Rate of pay.
- Record Disciplinary History
Maintain clear documentation of prior disciplinary actions, including verbal warnings, written warnings, and final notices. Ensure these records show that the employee was made aware their conduct could lead to termination.
- Include Company Policy Violations
If a policy violation caused the discharge, provide:
- A copy of the relevant company policy.
- Signed acknowledgment(s) verifying the employee was aware of the policy and consequences of noncompliance.
This may include materials such as employee handbooks, training manuals, union rule books, or posted notices.
- Focus on Relevance
Gather only documentation that directly relates to the separation. Include warnings, policies, and evidence that clearly support the employer’s decision to terminate.
What Documentation Do You Need?
While documentation best practices remain similar across most discharge cases, the specific requirements may vary depending on the nature of the separation.
By focusing on clear, relevant evidence and maintaining organized records, employers can effectively demonstrate misconduct and achieve favorable outcomes in unemployment claims.
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For more than 40 years, 501(c) Services has been a leader in offering solutions for unemployment costs, claims management, and HR support to nonprofit organizations. Two of our most popular programs are the 501(c) Agencies Trust and 501(c) HR Services. We understand the importance of compliance and accuracy and are committed to providing our clients with customized plans that fit their needs.
Contact us today to see if your organization could benefit from our services.
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The information contained in this article is not a substitute for legal advice or counsel and has been pulled from multiple sources. Some information was provided by our friend, Darby Gibson, Client Marketing & Insights Specialist, at Thomas & Company.
