Understanding Unemployment

“I have an employee who isn’t doing well but I’m reluctant to fire him because I’d have to pay unemployment. What should I do?”

Your HR Survival Tip

Worrying about whether an employee will collect unemployment is never a good reason to keep a bad employee. That bad employee will bring down morale and productivity in your company.

EDD (CA’s Employment Development Department) keeps track of all your employees and you are legally required to notify EDD each time you hire an employee. Payroll companies will usually do this for you but you want to make sure that’s happening. This is how they know who has been working with you (legally).

Your initial unemployment rate is pre-determined by your industry’s standard for unemployment claims. Whether it goes up or down is based on the quantity and size of claims you have. However, it seems like it’s really hard to lower your rate. The monies paid through your taxes are put into a state pool and they track your company’s share of the pool.

When an employee files a claim, EDD looks back at the employee’s earnings over the last 4 or 5 full quarters to determine the amount of weekly  [click to read more …]

Safer Terminations

“I am always worried when firing an employee that I’m at risk. What can I do to reduce my risks?”

Your HR Survival Tip

The best way to reduce your risk when terminating an employee is to make sure the employee isn’t surprised. They should know you’re not happy with their performance… and you should be able to prove it.

An angry employee is always dangerous and often looks at ways to get back at you. None of those ways bode well for the company. They could talk with an attorney, who is bound to find other things you did wrong unrelated to the termination. They could blast you on any number of social sites that mess with your company reputation… and it’s legally very hard to get them to stop. They could call their coworkers and try to cause problems there. They could file a claim with the DFEH (Department of Fair Employment Housing) that you would spend time and money on even if it’s a bogus claim. California has made any of these very easy for employees.

While there are no guarantees you can completely prevent the above from happening if an employee is really determined, you can  [click to read more …]