Riley Bennett Egloff Magazine January 2019 | Page 21

1. Are there other claims the employee may file?
Keep in mind the employee may file other claims against the Company after being terminated, such as a
discrimination claim with the Equal Employment Opportunity Commission or Indiana Civil Rights Commission.
The unemployment statute provides that any finding of fact, judgment, conclusion, or final order made by the
Department of Workforce Development in an unemployment case is not conclusive or binding and may not be
used as evidence in a separate action between an individual and the employer in an action before “an arbitrator,
a court, or a judge.” I.C. § 22-4-17-12(h). However, sworn testimony provided in an unemployment case is not
a “conclusion” or “finding of fact” and may be admissible as evidence in a discrimination case. For example,
if the employee testifies under oath in an unemployment hearing that he consumed alcohol on the Company’s
premises during his work day, that statement itself may be admissible as impeachment evidence if he changes his
testimony in the discrimination case. See Fed. R. Evid. 801(d). For this reason alone it may be worth challenging
an unemployment compensation claim.
2. Is there “evidence” that you might uncover?
Another reason to challenge an unemployment compensation claim is that it may provide the Company with an
opportunity to learn more about the employee’s allegations. For example, an employee in an unemployment
case may identify other employees who consumed alcohol at work but who were not disciplined, to support his
discrimination claim that employees in different categories were treated differently. This information could help
the Company prepare to defend against the potential discrimination case.
3. Will other employees “follow suit”?
An additional reason to challenge an unemployment compensation claim could be to prove to the former employee
that the Company is serious about defending against meritless claims, which may cause the employee to shy
away from filing other claims against the Company. Additionally, taking a hard stance against meritless claims
may reduce the number of claims in the long run. Companies with a reputation of being “soft” against claims
by former employees because they choose not to contest claims may find that they are easy targets for future
employment law claims.
Conclusion
All of these factors should be considered by the Company in deciding whether to challenge an unemployment
compensation claim. Even though the initial stakes may seem relatively small, the decision to contest an
unemployment claim may provide strategic benefits to the Company. However, that decision must be made quickly
before the claims deputy makes an initial decision. There are short deadlines for challenging unemployment
decisions, so prompt action by the Company at each step is crucial to preserve its rights.
If you have questions concerning unemployment compensation or other employment law matters, please contact
Don Smith.
RBELAW.com
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