Unemployment Cost Control

Hiring the right employees can be a challenge. Whether the economy is up or down, good or bad there is no simple way to ensure that the person that you hire is going to ‘make the cut’ in the long run. Other times, you have a long term employee that has developed a bad attitude or a complex that you can’t seem to get past and you have to let thsave money by cutting unemployment claimsem go. Whatever the situation may be, a former employee can still cost you a pretty penny in unemployment compensation claims if you don’t follow the correct procedures when you have to end a working relationship.

True Story… In need of a part time line cook, i was conducting interviews and had settled on a young applicant that seemed like a pretty ‘good fit’ for the position that I needed filled. With a few months into his tenure I was feeling a little uneasy with him based on comments I had overheard about him.

Well, one Saturday evening that I was not on shift, this particular line cook was observed doing what we in the restaurant business call a “whip-it” (Inhaling the gas from a can of whipped cream to get a ‘quick high’). After hearing about this incident from several staff members that witnessed it, I, of course terminated him. Shockingly, I received a petition for unemployment compensation.

With several eye witness accounts I felt there was no way that the unemployment hearing would go in his favor, so I returned the reply form and attached signed witness accounts of what had transpired that evening. Several weeks later, I was informed that the unemployment board had sided with the employee. Their reasoning was that I had not properly warned him that if he were to inhale a can of whipped cream gas to get high, that he could or would be fired for such an action!!!

This former employee was able to collect the full term of his unemployment, costing thousands of dollars in additional payroll costs. – The Moral to this story is – Understand your local unemployment laws to the best of your ability. Learn to protect your restaurant from unjust unemployment claims to save thousands of dollars in avoidable expenses

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