Employers have a financial interest in providing accurate information in response to a claim for unemployment benefits, in an effort to keep their unemployment experience, and therefore rate, low.

That financial interest includes having a system in place to evaluate how they should respond to each claim for benefits, including insuring that any information proved is in fact accurate. The system should include a review of all information to be provided in any administrative hearing as well. The probability of the employee filing other legal actions should also be considered. In rare cases, it might be in an employer’s interest not to participate in the unemployment process at all.

Employers should bear in mind that while the outcome of an unemployment hearing should not have any affect in a subsequent employment related lawsuit brought by a former employee, inconsistent statements, or inaccurate information, can be used against the employer in a subsequent lawsuit.

In fact, in Kentucky, providing false information in an unemployment proceeding can be the basis of a subsequent lawsuit. This situation has the potential for arising in even the seemingly simple situation wherein the employer submits information indicating that an employee voluntarily resigned, and the employee is found to have resigned with good cause attributable to the employment. As we all know, these situations are not always crystal clear.

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