usairways_vote_NO said:
In some states I know Companies can contest paying of unemployment benefits
In the majority of States, benefit funding is based solely on a tax imposed on employers.
[post="243071"][/post]
Slight correction...
In
ALL states, a company can contest an application for UI (unemployment insurance) benefits. However, in the case of mass layoffs/ voluntary separations/etc, they usually don't because each individual's application must be contested separately. Ain't no such thing as a "blanket" protest of UI apps. The company usually has to involve its lawyers in the dispute. Lawyers cost more than the UI benefit. The company may tell you in advance that they will dispute the claim if you file, but most don't. As a general rule, companies dispute only those apps where they had "good cause" for separating the employee --such as, theft of company property, abuse of sick leave (which they can prove), etc.--to avoid "precedent setting."
The payroll tax on employers is a variable percentage of total payroll within the particular state. IIRC, in Texas for instance, the percentage can be as low as one half of one percent to as high as 5% of total in-state payroll. The percentage is usually set once a fiscal year (the state's fiscal year, not the company's) based upon the company's "experience" over the last 12 months. More claims = higher experience = higher percentage tax.
Sounds like UAIR is going to have high experience after this round of concessions regardless; so, it would not be cost effective to dispute enough of the claims to make it "pay" for them.
And, remember that even if the company disputes your claim and the initial ruling is to deny your claim, you can file an appeal to that ruling, and to the next ruling, and to the next. All the way up to the State Commissioners. If they rule against you, you can then file suit in court. Do you see why most companies don't bother to dispute claims?
