After an employee loses his or her job and applies for unemployment benefits, Employers have many different motives for challenging the employee’s right to unemployment benefits.  One motivation, for example, is that employers who repeatedly terminate employees are levied a higher unemployment benefits tax rate; accordingly, employers have an incentive to challenge an employee’s right to unemployment benefits simply to avoid the tax increase associated with terminating employees.  From the employee’s perspective, the key to fighting back against the employer is understanding how a favorable determination entitling an employee to unemployment benefits is made. As a general rule, employees are eligible for unemployment insurance benefits when their employer has terminated them from their job (as opposed to an employee voluntarily quitting the job).  However, employees that are terminated because of their own misconduct may risk losing some or all of their unemployment benefits.  Not surprisingly, employers often challenge a claim to unemployment benefits by alleging that the employee engaged in some form of misconduct. The Maryland Department of Labor, Licensing and Regulation (i.e., the “DLLR”) categorizes misconduct in three ways: simple misconduct, gross misconduct and aggravated misconduct. Each respective category carries with it a stiffer penalty.  In this blog we will discuss termination for simple misconduct. Simple misconduct may include violating company policy or merely neglecting one’s job duties.  By way of example, in a written opinion issued by the DLLR Board of Appeals, an employee was found to have committed simple misconduct when he was regularly late to work and repeatedly violated the employer’s attendance policy in the face of multiple warnings.  The employee’s tardiness was found to be “simple misconduct,” despite the fact that the employee asserted that there were “legitimate” reasons for his being late, including a need to provide care for a child who suffered from a mental disability.  Bush v. Becton Dickinson and Company, 2084-BR-94. The penalties for even simple misconduct can be harsh.  An employee found to have been terminated for simple misconduct may be disqualified from receiving unemployment benefits for between 10 and 15 weeks from his last day of work, depending on the degree of the misconduct. As demonstrated by the above case, simple misconduct can be easily committed.  In fact, an employee can even commit simple misconduct unintentionally.  See DLLR v. Hider, 449 Md. 71 (1998).  Employees must therefore familiarize themselves with their employers’ policies and ensure they remain in compliance with them; otherwise, employees risk the possibility of committing misconduct and jeopardizing their future entitlement to unemployment insurance benefits. If you are interested in learning more about unemployment benefits, the process for obtaining unemployment benefits, or your rights in this regard, please contact our law firm to speak with an attorney. 

“I worked at my company long enough and have earned the minimum requirements to be eligible for unemployment insurance, so why am I being denied benefits? And what can I do about it?” Many employees are caught off guard when they receive a notice in the mail from the Department of Labor, Licensing, and Regulation (the “DLLR”) scheduling a telephone hearing to discuss their benefit eligibility.  Some employees are surprised to learn that employers may challenge a former employee’s right to unemployment benefits on non-economic grounds.  Others are aware that employers may contest a claim for benefits, but they are not clear what the grounds for disqualification are.  Those grounds include but are not limited to: a claim that the employee voluntarily quit, or a claim that the employee engaged in misconduct, or the failure of the employee to look for new work.  We will discuss each of these reasons for disqualification in posts to follow. Employees must realize, however, that it is just as important to be familiar with the unemployment appeal procedure as it is to know the reasons why you can be disqualified from receiving benefits. Many employees simply are not prepared during the initial phone hearing and are denied unemployment insurance benefits.  Then they figure that they will go to the hearing held at the next level without an attorney, thinking that they always can get an attorney to challenge the decision later, if it does not go in the employee’s favor.  These mistakes often result in the loss of benefits in cases where knowing the appeal process would have enabled an employee to prevail. We will discuss the appeal process in our next blog. The Unemployment Insurance Appeal Process – A Crucial Overview After initially filing for benefits, the first stage of the unemployment insurance process involves a telephone interview conducted by a representative from the Unemployment Insurance Division of the Maryland Department of Labor, Licensing, and Regulation (“DLLR”).  DLLR conducts separate telephone interviews with the employee and with the employer, and it then renders an initial decision.  If DLLR denies the employee’s request for benefits, the employee must appeal the denial within 15 days of the decision. The appeal is a new hearing and is not bound by the findings made during the phone hearing. Even more importantly, the appeal is conducted in person at an Unemployment Insurance Division office and is held before a DLLR Hearing Examiner.  Both employees and employers may introduce evidence and call witnesses during the appeal. All testimony is given under oath and is recorded. The single, most significant mistake that employees make regarding these appeals is failing to realize that this is the ONLY opportunity for a face-to-face hearing that the employee will have.  Any appeal from the decision of the Hearing Examiner will be conducted “on the record” – which means that the Hearing Examiner’s decision will be upheld unless a party can demonstrate a serious and prejudicial mistake. As a result, often employees and employers alike make the mistake of not hiring a lawyer to represent them during this appeal. Knowing what information is relevant, how to examine and cross-examine witnesses, and what legal arguments to make all are crucial to a successful appeal hearing.  Most people don’t realize that the hearing involves all of these things, and decide to go it alone – a decision they often end up regretting. Furthermore, many unemployment appeals involve employees and employers who are engaged in other lawsuits with each other, such as a suit for harassment or discrimination.  It is important to realize that sworn testimony at the appeal hearing may be used by the parties to have damaging evidence or admissions introduced into evidence at a later trial. Employees who represent themselves, or employers that send a company representative untrained in the law, may have disastrous legal consequences. If you are involved in an unemployment insurance appeal, contact Luchansky Law.  We have represented numerous employees and employers in unemployment insurance appeals, and we can provide you with the best opportunity to prevail in yours.