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Firing an Employee/UC Claims
#1
I dismissed a young employee. She is planning on opening her own salon, and she had been trying to solicit my staff to go with her. I found out about it, and I let her go.

She went right to unemployment to collect. Anyone have any experience with this? I will fight it and have to go to court, of course - but I was wondering what her chances are of being able to collect unemployment?

Jan
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#2
I guess it would vary from state to state, but in Tennessee, someone that has been fired with just cause cannot collect unemployment. Here it also depends on the quarters worked. Last time I checked they counted the last five and paid on the first four.
Always be kind....you get farther.
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#3
It will likely depend on whether they think you had cause - I think they tend to favor the employee unless you can show that she was doing something that is against the rules, and often they want to see warnings or preliminary steps to solve the problem and that she didn't change her actions. Hopefully they will see that her actions were potentially damaging to your business - do you have an employee handbook that states things that could result in terminating employment?
Candice
Nail Tech/Owner
http://www.PanacheNailStudio.com
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#4
There are a number of salons here that require you to sign a non-compete within a certain mile radius.
Angela
Angel
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#5
I gather by the way you are all talking, unemployment payments somehow falls back on the previous employer.
I live in Australia and our unemployment benefits sounds very different to what the USA is, so this is why I don't understand why you as the salon owner have any bearing on what she gets paid.

Could someone explain to me how your benefits work and this might make things clearer to me but as I see it, you have done nothing wrong especially if you had some sort of rule/contract when she started that she was not to solicit the salons client for own "out of salon" work.
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#6
Part of the deductions taken out of a person's pay is for unemployment insurance. If an employee is terminated and they request unemployment benefits, the employer is the one to pay. Different states have different laws. For instance, Arizona is an at-will employment state, which means the employer does not need a reason to let you go. Certain reasons for termination will deny an employee benefits (i.e., insubordination, threatening, etc.). There are lot of times when an employers winds up paying the benefit because someone at the employment office felt they didn't have good enough reason for termination. It is a very sticky situation, but as I said in my other post, a lot of the salons will make their employees sign a non-compete agreement (mine is a 15-mile radius), which is pretty big. I happen to live 15 miles from the salon, so it isn't an issue. If they had a non-compete and the employee was fired, that might be grounds to not get unemployment. I am not sure and it varies from state to state. Hope that helps.
Angela
Angel
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#7
Then if you live in a "right to work" state, I have seen these non-compete agreements be null and void.
Always be kind....you get farther.
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#8
(11-19-2012, 06:21 PM)AZNailGal Wrote: Part of the deductions taken out of a person's pay is for unemployment insurance. If an employee is terminated and they request unemployment benefits, the employer is the one to pay. Different states have different laws. For instance, Arizona is an at-will employment state, which means the employer does not need a reason to let you go. Certain reasons for termination will deny an employee benefits (i.e., insubordination, threatening, etc.). There are lot of times when an employers winds up paying the benefit because someone at the employment office felt they didn't have good enough reason for termination. It is a very sticky situation, but as I said in my other post, a lot of the salons will make their employees sign a non-compete agreement (mine is a 15-mile radius), which is pretty big. I happen to live 15 miles from the salon, so it isn't an issue. If they had a non-compete and the employee was fired, that might be grounds to not get unemployment. I am not sure and it varies from state to state. Hope that helps.


Wow! That is interesting to see that it works this way.
Thank you for explaining this.

Propeditech- I hope it all works out for you, I would hate to see this happen to me as a salon owner but as I am still a one lady show with a home salon, I don't have to worry but by geez, I feel for you.
I hope you come back and say that you had a contract with her and she has broken it by trying to steal the salons clients.
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#9
In Canada non-compete clauses bear little to no weight in our industry as every individual has the right to earn a living in their profession.

Our EI (Employment Insurance) is federal and is hard to collect if you quit or get fired. If you get fired after working for 3 months without just cause, the employer must either give you one week's notice or one weeks pay in lieu of notice. The longer you work the more notice or pay must be given.

If the employee makes a claim for EI, it has no bearing on the employer at all.
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#10
One other thing to be possibly be considered, since she was an employee, it's possible that she intended on contacting clients to let them know about the new place. I know in TX., the clients belong to the salon in an employee/employer situation. It's very likely she was planning on contacting the clients thru her contacts made there at your salon. That also can be construed as stealing if you can prove she was in your client files gathering info.
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#11
(11-19-2012, 08:00 PM)Tn Nail Lady Wrote: Then if you live in a "right to work" state, I have seen these non-compete agreements be null and void.



I don't know how enforceable they are, but they certainly are intimidating. I will have to ask. (I have been an legal secretary for 35 years).
Angela
Angel
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