How to Win Unemployment Claims for Your Cleaning Business
The residential cleaning industry has notoriously high employee turnover rates, which means you've likely had to deal with one or several former employees making unemployment claims. Believe it or not, it's possible to fight these claims—and win.
We had a claim from an employee we had fired because she broke the rule of bringing her husband to work with her – twice. And on top of that, she had him helping her do the work! The first time it happened we reminded her that it's a company violation and that it's grounds for termination. The second time she had him working with her we terminated her employment.
When it came time to replying to the State, we copied our Company Violations page from our manual, which specifically refers to allowing unauthorized personnel on client property. We hi-lighted the statement, explained about the 2 violations and we won our case.
There's no exact science to winning an unemployment appeal, and laws can vary widely from state to state. That said, there are plenty of things you can do as an employer to increase your chances in court (and avoid bumps in your unemployment insurance rates).
Preparation for Unemployment Cases is Key
Letting an employee go is usually the option of last resort, something that happens only after much discussion and efforts to correct problems. Keeping thorough employee records is your best defense against unemployment claims.
The best time to prepare yourself for an unemployment claim is before you have a problem employee. If you don't have one already, create a comprehensive employee handbook. It should spell out your attendance policy, performance and personal conduct expectations, and evaluation procedures.
The handbook should also cover what happens when an employee fails to meet expectations. With all of this in place, it becomes far less likely that an employee is surprised when they receive disciplinary action. Review these materials during employee orientation.
Also, conduct annual (or perhaps more frequent) reviews. Avoid accusations of targeting specific employees by doing reviews with everyone, even with your best team members.
Take complete notes in their files about behavior or performance issues as well as any corrective actions taken.
Use this time to offer praise or correction, and also to field any questions or receive any feedback the employee may have. A good review process will leave both you and the employee feeling ready to move forward.
A personnel file is used to store all non-confidential employee information—a signed copy of reviews, disciplinary action notes, emergency contact information, and the results of any internal investigations needed at your company. It's not the place for private information, such as benefits enrollment forms, supervisory notes that aren't part of an official review, or detailed information about complaints from other employees.
[Don't yet use personnel files? A great starting point is this thorough article Arlene Vernon wrote for us.]
Finally, research the unemployment laws in your state. Generally speaking, any former employee can make a claim, and the burden of proof is on the person who chose to end the employment agreement. When you fire someone, you'll likely need to prove that the former employee had opportunities to keep their job in order to “win” the unemployment case.
Even if you have a perfect crew, familiarize yourself with your state's laws relevant regulations. Knowing the rules now could save you big money if a problem arises.
When You're Ready to Fire an Employee
What happens when an employee fails to meet expectations? In most cases, you'll want to discuss the problems, offer ideas for improvement, and perhaps provide retraining.
When you must talk to an employee about negative behavior, document it. Write down all pertinent details: Day, time, location, witnesses to the behavior, and specifics about what happened. Be specific. Instead of “NAME was disrespectful to his coworker and said hurtful things,” write “NAME gave COWORKER the middle finger and called him an “idiot” in the office after the team meeting on January 12. [Other workers' names] were present.”
Many common employee issues can be resolved with additional training. What's more, if you fire someone for poor work performance, you'll have a much easier time disputing an unemployment claim when you can prove the employee had the training they needed.
Unfortunately, there will be times when termination is the only remaining course of action. For many managers, the firing conversation can be tough. If so, remind yourself that it's a necessary part of protecting your business.
Schedule a time for a private meeting with the staff member. Be clear about why you're firing them. Bring a written copy of the reason for dismissal, and ask them to sign it before they leave.
Also, you don't need to give a second chance to someone who is endangering other employees or the organization as a whole. Grounds for immediate termination can include things like theft, vandalism, drug use, or sexual harassment.
Handling Unemployment Claims
When hit with an unemployment claim, you'll likely have only a few weeks to file a written response. Check your state's rules to make sure you don't accidentally miss an important deadline.
You'll need to gather evidence so you adequately respond to every aspect of the claim. Stick to facts. Avoid name calling and vague information. Provide specific records about the incident of misconduct, proof that you told the employee they could be fired for the issue, and evidence that you followed company policy. All of this should be in the employee's file.
If the employee voluntarily left, simply deliver evidence that they chose to leave despite the fact that work was still available for them. Avoid discussions of performance or character in these cases.
If the claim isn't dropped after you provide your evidence, you may need to attend hearings with a hearing officer or judge. You may be able to represent yourself, but some states require employers to hire a labor and employment attorney to present their case.
Either way, come prepared with your evidence and any witnesses to the fireable offense. The more first-hand evidence you can present, the more likely you will be able to sway the verdict in your favor. The judge is more likely to side with your former employee if no one can dispute their claim.
Unemployment claims have the potential to put a big dent in your company's finances. With proper preparation and documentation, however, it's possible to refute many claims and avoid shelling out money or paying more for unemployment insurance.
Cleaning Company Policy Manual and Employee Handbook for Residential Cleaning Companies is a downloadable program in Microsoft Word format.
A policy manual / employee handbook can save you thousands of dollars in fines and legal fees by avoiding just one lawsuit. Why? Because every employer needs to inform each employee of the rules and regulations of the company. When employees understand the rules, they have less reason to file unemployment claims due to misunderstandings.
