At a time when employers are facing higher unemployment costs due to increased benefit payouts, forced expansion of benefits for states accepting stimulus money and interest charges for necessary federal loans to name of few, the North Carolina Bar Association has issued an opinion that if it becomes binding would require employers to contract with a licensed attorney in the state of North Carolina if they wish to have representation at an unemployment hearing.

This change in essence means that employers will have to either pay more to be represented at a hearing, or skip representation altogether.  Skipping representation altogether is a bad choice for employers.  The current average cost of an unemployment claim to the employer is running about $4,500 and eligibility rules vary by state.  Without an expert at the hearing with them, the employer runs a higher risk of losing a winning case simply due to lack of knowledge.

I'm not in any position to dispute whether the NC Bar Association's opinion is valid or not.  I haven't read it and don't know the facts of the case.  What I do know is that in today's economy, employers are struggling to stay afloat.  They really can't afford to have many more legislative changes that end up costing them dollars they could be using to expand their businesses and create jobs.

Tammy Mullin