Unemployment Claims from the Employer's Side: What You Need to Know

You just terminated an employee. A week later, you receive a notice from the Oklahoma Employment Security Commission (OESC): they've filed for unemployment benefits. Now what?

Understanding how unemployment insurance works from the employer's perspective helps you make better decisions—both about contesting claims and about keeping your rates manageable.

How Unemployment Insurance Works (The Basics)

Unemployment insurance is a joint federal-state program. In Oklahoma, employers pay unemployment taxes into a trust fund. When former employees qualify for benefits, payments come from that fund.

Your tax rate is based partly on your "experience rating"—how many of your former employees have collected unemployment. More claims = higher rates = more money out of your pocket.

Does Every Claim Raise My Rates?

Not necessarily, but often yes.

When a former employee collects unemployment, those benefits are "charged" against your employer account. The more charges you accumulate, the higher your tax rate becomes.

However, there are exceptions. Benefits may not be charged to your account if:

• The employee quit voluntarily without good cause
• The employee was terminated for misconduct
• The claim is successfully contested
• Certain other statutory exceptions apply

This is why contesting questionable claims matters—it's not just about that one employee; it's about your long-term tax rate.

Will My Former Employee Qualify?

To receive unemployment in Oklahoma, the claimant must have:

1. Earned enough wages during the "base period" (roughly the first four of the last five completed calendar quarters)
2. Been separated from employment through no fault of their own OR quit for "good cause connected with the work"
3. Be able and available to work and actively seeking employment

The key question for employers is usually #2: Was the separation the employee's fault?

Employees Who Generally WILL Qualify

• Laid off for economic reasons, lack of work, or business closure
• Position eliminated or restructured
• Quit for good cause (unsafe conditions, significant pay reduction, harassment the employer failed to address)
• Fired for poor performance that didn't rise to "misconduct"

Employees Who Generally WON'T Qualify

• Quit without good cause — Just didn't like the job, found something better, personal reasons unrelated to work
• Fired for misconduct — Violated known policies, insubordination, dishonesty, serious rule violations

What Counts as "Misconduct"?

This is where most employer/claimant disputes occur. Under Oklahoma law, "misconduct" means:

A willful violation of the standards of behavior which an employer has the right to expect; deliberate disregard of the employer's interests; carelessness or negligence of such a degree as to show wrongful intent.

Examples that typically constitute misconduct:

• Theft or dishonesty
• Insubordination (refusing direct, reasonable orders)
• Violating known safety rules
• Excessive unexcused absences after warnings
• Workplace violence or threats
• Being under the influence at work
• Serious policy violations the employee knew about

Examples that typically DON'T constitute misconduct:

• Simple inability to perform the job
• Mistakes or errors in judgment
• Personality conflicts
• Being a "bad fit"
• Poor performance without willful disregard

The distinction matters: "I fired them" doesn't automatically mean they're disqualified. You need to show misconduct, not just that you had a reason to terminate.

The Claims Process: What to Expect

1. Notice of Claim Filed

When a former employee files, OESC sends you a notice. Respond promptly. Failure to respond means the claim may be approved by default.

2. Provide Separation Information

You'll have the opportunity to explain why the employee was separated. Be specific:

• What policy was violated?
• When did it happen?
• What warnings were given?
• What documentation do you have?

3. Initial Determination

OESC makes an initial decision on eligibility. Either party can appeal.

4. Appeal Hearing

If you contest and the employee appeals (or vice versa), there's a telephone hearing before an Administrative Law Judge. You'll need to present evidence—documents, witnesses, specifics.

5. Further Appeals

Decisions can be appealed to the Board of Review and then to Oklahoma courts.

How to Successfully Contest a Claim

Document Everything Before Termination

The time to prepare for an unemployment claim is before you fire someone:

• Written warnings with specific dates and conduct
• Policy acknowledgments signed by the employee
• Performance reviews documenting problems
• Witness statements if relevant

Respond Quickly and Completely

When you receive the claim notice, provide detailed information. Vague responses like "terminated for cause" don't help. Specifics win.

Focus on Misconduct Elements

Frame your response around the legal standard:

• The employee knew the rule/expectation
• They violated it willfully
• It was serious enough to warrant termination

Attend the Hearing

If the claim goes to a hearing, participate. No-shows lose.

Keeping Your Unemployment Tax Rate Low

Strategic Hiring and Onboarding

High turnover drives up unemployment costs. Investing in hiring the right people and onboarding them well reduces separations.

Progressive Discipline

Document performance issues before they become terminations. A paper trail showing warnings makes misconduct findings more likely if you do have to fire someone.

Resignation vs. Termination

When possible, allow problem employees to resign. Voluntary quits without good cause generally don't result in charges to your account.

Contest Inappropriate Claims

Don't ignore claim notices. If you have grounds to contest—misconduct, voluntary quit—do so.

When to Get Legal Help

Consider consulting an attorney when:

• A terminated employee was involved in serious misconduct and you want to ensure proper documentation
• You're facing multiple claims affecting your rates
• A claim involves potential retaliation or discrimination allegations
• The hearing involves complex facts

We Help Oklahoma Employers

Unemployment claims are a cost of doing business—but they don't have to be an uncontrolled cost. We help employers document separations properly, contest fraudulent or inappropriate claims, and manage their unemployment tax exposure.

If you're facing a contested claim or want to review your termination practices, contact us.