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How long does an employer have to contest unemployment benefits?

Why won't my employer withdraw their appeal of my unemployment benefits?

  • At the end of September I recieved a letter dated 9/29 stating that my former employer was appealing the states decision to award me unemployment benefits. The letter states that I may have to pay back benefits received after the date on the letter if found ineligible. The worlds RECIEVED AFTER are bold and underlined in the letter. The day before I recieved the unemployment I needed to make me current with what they owed me. The checks were dated 9/28. As of 9/26 I declined any further benefits because I started a new job. There is NO MONEY for them to dispute anymore. I called my former employer to ask that they withdraw the appeal but said the decision had to come from corporate. I email every week and just keep saying corporate will call them and they will call me. Well today I got the letter with my appeal hearing date. This time it came with a copy of a letter sent from a 3rd party representing my former employer in this matter. This was the letter they sent the state, officially appealing the decision. I left a message for that company and am awaiting a response. I can't imagine a reason why they WOULDN'T withdraw the appeal if there is no money to appeal. Even if found ineligible, I won't have to pay anything back because I didn't accept any benefits after 9/29. Can anyone shed some more light on this for me? Please.

  • Answer:

    To put it simply, it's their right to pursue it. Since their unemployment tax rate is tied to the number of former employees who collected benefits (whether they've been reemployed or not) if they win their appeal it will keep their tax rate lower than if they lose. Since the rate is assessed on all employee wages (up to an annual ceiling per employee) even a small shift in the rate can have a major impact on the total tax for a large employer. Obviously they've deemed it worthwhile to contest your claim. If they win and you lose your current job within about 8 weeks of starting it may affect your entitlement to future benefits. Since you appear to be outside of that window (but check your state's rules first!) it may be a moot point for you. If it will affect your future benefit entitlement, maybe you should respond to the challenge.

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I suspect that if your current employer were to lay you off in the next 6 months, benefits would probably be based to the time period and employer of your previous job. If that was the case, it is likely that your previous employers unemployment insurance premiums would rise.

If you would only be liable to pay back money received after 9/29, then it's a moot point. You have no money to give back, so whether they appeal or not is irrelevant. So just show for the hearing, explain the situation, and head on about your merry way.

You may be reading into the "received after" incorrectly. If an employer appeals your unemployment and the decision is reversed, then you never qualified for any unemployment money, and you must pay back all that you received. This is why the employer is appealing the decision. This happened to me last year. It took 6 months for the hearing, and I was required to pay back everything that I had received because the decision was reversed.

you are simply stuck in a bureaucratic situation. People often do not know how to react when it is not the usual situation, as is your case in getting a job so quickly. I'd recommend just going to the hearing for the appeal, spend five minutes with the judge, and hope this person has enough common sense just to dismiss everything. I've had the CA unemployment office send me seven notices of winning the exact same case, and another time 5 of an appeals process, for the same person. I'd try to call, but it was just an exercise in futility. No one is responsible when it is other people's money they are spending.

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