Running your own business can be an incredibly fulfilling experience, but one that is full of daily stress too. While it is commonly said that most companies are only as good as their employees, management of personnel can be extremely challenging. Most of us have had the good fortune to hire individuals who demonstrate a strong work ethic, are always reliable, and enjoyable to be around. A select few, however, may be difficult, unreliable, and even dishonest.

Managing Employees Can Be Challenging

If your company is in an area where there is a labor shortage, you may have to pick your battles. Before firing someone, take a breath, and consider the consequences of letting them go. Will you be able to hire someone else quickly enough, and will it be worth the time, effort, and expense to go through the training process all over? Would it be easier just to keep working with a difficult employee and hope they improve? If you have hired someone who does not really seem to want the job, rarely shows up, and has a subpar work performance, you may not be surprised to find out they have quit. But you may be quite shocked to find out they also filed for unemployment.

Some Individuals May Receive Unemployment Even if They Quit

In California, individuals who quit their jobs can collect unemployment, but they must have good cause. What constitutes good cause will be up for debate if you decide to contest a former employee’s claim for unemployment benefits. Because this can be a stressful and frustrating experience, you may want to consult with your business attorney about what to do, as well as discussing whether you will need representation at a potential hearing.

For those who qualify, unemployment is provided by the state. In California, unemployment benefits are part of an insurance program which also covers the disabled as well as employees who are temporarily away from work due to (paid) family leave. As an employer, you pay an unemployment tax which varies. If you are a new employer, you probably pay a tax of 3.4 percent for the first several years.

Your Unemployment Tax Rate is Based on Risk Factor

If an employee does file for unemployment and receive benefits your rate may not go up at all—or it could rise significantly according to how the state views you as a risk factor. Your rate may become higher depending on what happened, and how the circumstances are viewed—whether you were forced to fire or lay off an employee, or they quit, perhaps even citing an intolerable work environment.

Maintain Thorough Documentation

As an employer, your ace in the hole is to offer a good work environment, and keep thorough documentation. If an employee begins having trouble at work, be sure to begin with—and document—at least several warnings—unless their employment must be terminated before you have time to do so. Keep notes on any problems, and be prepared to defend yourself at an unemployment hearing.

Contact Us for Help

Unemployment issues may seem both frustrating and complex, but as an employer you do have rights, and we can help you fight for them! Contact the law office of Shane Coons now, so we can review your case and help you move forward. Call now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.