Contesting the Right to Unemployment Benefits

02/22/2015 // Dallas, Texas, United States // Attorney Keith Clouse // Keith Clouse // (press release)

In Texas, an employer may contest a former employee’s right to unemployment benefits. Dallas employment lawyer Keith Clouse maintains, however, that in most situations an employer should not do so. In many instances, such as a lay-off or a termination based on “fit,” an employer has no grounds to challenge the individual’s right to benefits. But, even when an employer does have proper grounds, it may make more sense not to contest the benefit award because:

1. Contesting unemployment benefits costs time and money. A company may need to hire an attorney and will certainly need to devote its human resources staff to work on the matter.

2. Contesting unemployment benefits may lead to unintended consequences. Allowing an individual to receive benefits—even if the company has a valid reason to challenge that award—may preserve a former employee’s goodwill towards the company. An angry ex-employee is far more likely to sue the employer, and a business will expend significant resources getting even a meritless case dismissed.

3. Contesting unemployment benefits may lead to problems with current employees. When word gets out that the employer contested unemployment benefits, current employees may become distrustful.

This article is presented by the Dallas employment attorneys at Clouse Dunn LLP. To speak to an employment attorney, send an email to [email protected] or call (214) 239-2705.

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