8 Mistakes Most Likely to Cost Employers a Claim
Unemployment insurance is not for an employer's benefit but for employees who lose their jobs through no fault of their own. It provides temporary benefits to displaced workers who are found eligible while they seek new employment.
For employers, however, responding to and pursuing unemployment claims filed by employees who separated for reasons within their control is important for many reasons, including helping keep their unemployment tax rate as low as possible.
An unemployment claim often begins with a simple notice in the mail or an email alert from your state's unemployment agency. For many employers, receiving that notice feels less like an administrative task and more like an interruption.
In all my years working unemployment claims, I never encountered an employer who said, "Oh goodie, I get to participate in the unemployment process!" More often it was, "Oh, great...another unemployment claim. I don't have time for this."
The notice lands on an already full desk, demands immediate attention, and competes with countless other priorities.
The temptation is understandable: rush through the paperwork, send it back, and get on with running the business.
Unfortunately, treating an unemployment claim as "just paperwork" can lead to mistakes that weaken an employer's position before the agency has even reviewed the facts.
While every unemployment claim is decided on its own facts and according to state law, employers often make the same mistakes over and over. Some weaken an employer's credibility. Others prevent important facts from ever being considered. In some cases, employers unintentionally make it much more difficult for the agency or an Administrative Law Judge to rule in their favor.
The good news is that many of these mistakes are entirely preventable.
This article provides an overview of the eight mistakes employers make most often during the unemployment claims process. Over the coming weeks, we'll take a closer look at each one individually, exploring why it matters, how it can affect the outcome of a claim, and practical steps employers can take to avoid it.
Below are eight of the most common mistakes employers make during the unemployment claims process and why they matter.
Let's kick off our countdown with Mistake #8 – Failing to Appeal When Appropriate
Why this sits at #8: An appeal is an opportunity to have an unfavorable decision reviewed. While not every determination should be appealed, employers who automatically accept an unfavorable decision without evaluating the facts may miss their final opportunity to present evidence and testimony that could affect the outcome.
Climbing another rung on the ladder, we come to Mistake #7 – Failing to Present Firsthand Testimony When Necessary
Why it's #7: While firsthand information is important throughout the unemployment process, this mistake most commonly affects employers when a claim reaches an appeal hearing. Because many claims are decided during the initial adjudication, it doesn't affect every unemployment claim the way the higher-ranked mistakes do. Even so, information from someone with direct knowledge of the events generally carries more weight than secondhand accounts, whether provided during the adjudication process or at an appeal hearing.
Next up is Mistake #6 – Confusing Poor Performance with Misconduct
Why it's #6: Many employers mistakenly believe poor performance automatically disqualifies an employee from receiving unemployment benefits. Understanding the distinction helps employers focus on legally relevant facts instead of relying on conclusions that may not meet the legal definition of misconduct.
Halfway through our countdown, we arrive at Mistake #5 – Filing an Incomplete or Vague Claim Response
Why it's #5: The initial claim response often sets the tone for the entire adjudication process. Vague or incomplete statements require the agency to begin its investigation with more questions than answers. In Oregon, adjudicators generally contact both the employer and the claimant to verify information and gather additional facts before making a determination. Even so, employers should never assume there will be another opportunity to clarify or supplement their response. A complete initial response gives the adjudicator the best possible understanding of the employer's view from the start.
Breaking into the top four, we come to Mistake #4 – Failing to Identify the Final Incident
Why it's #4: The final incident often answers the question every adjudicator asks: "Why was this employee terminated when they were?" Employers who can’t clearly identify the triggering event often struggle to establish the connection between the employee's conduct and the decision to discharge.
We are down to Mistake #3 – Failing to Provide Sufficient Evidence
Why it's #3: Allegations alone are rarely enough. Whether the evidence consists of documents, records, policies, or credible testimony, employers must support what they claim occurred. Strong evidence allows the facts—not assumptions—to drive the decision.
Just missing the top spot is Mistake #2 – Providing Inconsistent Information
Why it's #2: Credibility is one of an employer's most valuable assets during the unemployment adjudication process. When the explanation for the separation changes between the initial response, interviews, or hearing, it raises questions about reliability. Even a strong case can be weakened if the employer appears uncertain about why the employee was separated.
Taking the top spot is Mistake #1 – Missing Response or Appeal Deadlines
Why it's #1: If there is one mistake that can derail an otherwise strong unemployment case before it even gets started, this is it!
Deadlines exist for a reason. An employer may have compelling evidence, reliable witnesses, and a legally sound basis for the separation—but if required deadlines are missed, some or all of that information may never be considered. It is the most preventable mistake and, in many cases, the costliest.
Key Takeaways at a Glance
| Mistake | Why It Matters |
|---|---|
| #8 – Failing to appeal when appropriate | Misses an opportunity to challenge an unfavorable decision. |
| #7 – Failing to present firsthand testimony | May reduce the strength of the employer's presentation. |
| #6 – Confusing poor performance with misconduct | Focuses on the wrong legal issue. |
| #5 – Filing an incomplete or vague claim response | Leaves unanswered questions. |
| #4 – Failing to identify the final incident | Makes it difficult to explain why the separation occurred when it did. |
| #3 – Failing to provide sufficient evidence | Makes allegations difficult to prove. |
| #2 – Providing inconsistent information | Can undermine credibility. |
| #1 – Missing response or appeal deadlines | Can prevent an otherwise strong case from ever being fully considered. |
Common Themes Behind These Mistakes
Although these mistakes appear different, they have one thing in common.
Each one makes it more difficult for the adjudicator to understand what happened, determine which laws apply, and reach an informed decision.
The unemployment process is not simply about completing forms or attending hearings. It is about presenting the relevant facts clearly, consistently, and on time so the agency can accurately evaluate the separation.
Employers who approach the process thoughtfully are generally in a stronger position than those who treat unemployment claims as routine paperwork.
Be Prepared
No employer wins every unemployment claim, nor should they expect to.
Preparation, not perfection is the goal.
Understanding how unemployment claims are evaluated, responding promptly, presenting consistent facts, and supporting those facts can help employers navigate the process with greater confidence.
Every claim is different, but preparing before one arrives is almost always easier than trying to recover after important deadlines have passed or opportunities have been missed.
It's Not If, It's When
Unemployment claims are an unavoidable part of doing business. Most employers will eventually receive one.
The employers who consistently navigate the process most effectively are not necessarily the ones with the fewest claims. They are the ones who understand the system, recognize common pitfalls, and prepare their responses carefully.
The next unemployment claim is rarely a matter of if—only when. Understanding the process before that notice arrives puts employers in a far better position to respond effectively.
Every unemployment claim comes with its own facts, challenges, and circumstances. If this article made you realize there's more to an unemployment claim than you first thought, imagine what you could learn by seeing your claim through the eyes of a former unemployment adjudicator.