In 2009, there were approximately 29.3 million unemployment claims filed in the US.  A source within the Department of Labor tells us that nationally, in 94% of the cases, benefit eligibility was determined at this initial claim level and no appeals were filed.  Of the 6% that were appealed and went to a hearing, claimants filed for appeal three times more often than employers did. 

So who wins?  Interestingly enough, regardless of whether it was the claimant who filed the appeal or the employer who filed the appeal the win % is generally 36% in favor of the appellant with claimants having slightly more success. 

These trends haven’t changed much over the past 5 years.  The appeal rate has gone up slightly and the % of the appeals by claimants has increased slightly while those filed by employers has decreased slightly.  Not an unexpected outcome given the current economic climate.

So what does this mean to you the employer?  Well, the unemployment system was established to help employees who lose their jobs through no fault of their own.  As an employer, you should continue to appeal decisions where you feel your former employee should not be eligible for benefits.  However, since the majority of people filing a claim for unemployment are eligible to collect, employers can have a greater impact on controlling their unemployment costs by helping to control the duration of an unemployment claim.  The best way to do that is to provide former workers with the tools and assistance they need to get back to work more quickly.  

Whether you choose to use an outside resource such as the TALX Reemployment Service or do it yourself in-house, having a Reemployment Strategy for former workers is an essential part of any Unemployment Cost Management program.  The right strategy can get former workers back to work 33% faster than those that are provided no assistance at all.

Tammy Mullin