In the Same Boat: Unemployment Claims, Human Resources, and Risk Management

By James Ezell

Is responding to unemployment claims a function of Risk Management or Human Resources? Does it matter which area responds? The answer depends on what your district seeks to accomplish. As the the Fund’s Unemployment Compensation attorney who handles your calls and questions, I’ve seen a lot of claims. When I’m asked what the best strategy is when protesting an unemployment claim, I say the number one priority is to make sure everyone at the district is in the same boat when responding to a claim, especially the areas of Risk Management (RM) and Human Resources (HR). Why do I single out these two areas? It comes down to their basic functions – controlling cost and managing people. You can’t do one without the other, but sometimes the two departments create boundaries on what is and is not their responsibility instead of realizing their need to operate in tandem. 

Frequently, RM or the Business Office is the point of contact called upon to answer a claim for unemployment from a former employee. RM’s job is to limit loss at a school district, and unemployment costs can add up quickly. But more importantly, unemployment claims by their very nature also fall under the purview of HR.

"So the question is, how can Human Resources and Risk Management work together to reduce costs and share sensitive personnel information?"

The Texas Workforce Commission (TWC) will want to know what happened with a particular claimant and why the claimant is no longer working for you. In almost every instance, that information resides in HR. So the question is, how can HR and RM work together to reduce costs and share sensitive personnel information?

First, RM should understand that HR plays an enormous role in reducing costs.  A well-crafted employee handbook, organized disciplinary warnings, medical records, and timesheets can save you from enormous costs and liability in an alphabet soup of claims: UC, WC, ADA, ADEA, FMLA, FLSA, and EEOC; just to name a few. Naturally, RM cannot respond to the TWC without knowing the facts on why the claimant is no longer employed. On the flip side, HR cannot develop a complete strategy for what to do in personnel matters unless they know the potential cost to the district when implementing a new procedure or a change in staffing.

In order for these departments to communicate with each other, both need to develop a strategy from the top down instead of reacting from the bottom up. At many districts, the person designated as the contact for unemployment claims may not have access to the HR information necessary to properly respond to a claim. For example, an HR staff person may not normally have access to confidential personnel files necessary for handling a UC claim. Limited data access can result in delays or insufficient information being sent to the TWC or counsel, which results in higher claim costs.

When designating your contact with the TASB Risk Management Fund Unemployment Compensation program, consider appointing an employee with access to HR information, who can also respond to claims and elicit information from campus staff without waiting on permission. If that is not an option,

"When designating your contact ... consider appointing an employee with access to HR information, who can also respond to claims and elicit information from campus staff without waiting on permission."

consider issuing a directive that assisting the person in charge of responding to unemployment claims should be treated as a priority and essential job function.

Cooperation between departments is essential. The TWC will not deny an unemployment claim simply because an employer asks it to do so. The employer carries the burden of proof to show misconduct when someone is discharged. The process begins with the former employee’s statement concerning the separation from employment. Employers must be able to quickly counter that statement with HR information that appears in disciplinary warnings, medical records, policy handbooks, and a host of other documents. Communication and input from HR is vital.  Who is better situated to explain the employer’s absence policy or request a campus principal’s input on an issue that occurred on his/her campus?

As we begin a new school year, keep these ideas in mind when you designate your unemployment claims program contact. Once that person is selected, make sure HR and RM operate by sharing information that best protects the district, thus allowing the district’s best case to be presented. If you have questions regarding employees who have filed for unemployment, please contact James Ezell, the TASB Risk Management Unemployment Compensation Attorney, at 800.482.7276, ext. 6258. You may also contact him by e-mail at:.