Over the last few months, claims for unemployment insurance benefits have increased exponentially due to the difficult financial circumstances public and private employers have been confronted with in the wake of the COVID-19 pandemic. Reductions in services and business closures have forced many employers to implement layoffs and furloughs, causing the dramatic increase in unemployment
Beware: “We Won’t Contest Unemployment Benefits Application” Clauses May Result in Charges to Your Unemployment Benefits Reserve Account
This post was authored by Judith S. Islas
Employment separation settlement agreements frequently contain provisions whereby employers agree not to contest unemployment benefit applications. When the terminated employees then file for unemployment benefits, the Employment Development Department (EDD) asks the employer for information as to why the employee was let go. These employers then, because