What to Do When an Employer Contests Unemployment Benefits

Updated June 2026

If your employer contests your unemployment benefits, do not ignore the notice and do not assume you automatically lost. An employer contest usually means your former employer is claiming you are not eligible for benefits because of why your job ended, how long you worked, how much you earned, or whether you were truly an employee.

Your next steps are important. Read the notice carefully, calendar the appeal deadline, continue certifying for weekly benefits if your state requires it, gather documents, and prepare to respond to the employer’s version of events. If your employer is claiming misconduct, saying you quit voluntarily, or changing the story after a workplace complaint, you may also want to speak with an employment lawyer.

What does it mean when an employer contests unemployment benefits?

When an employer contests unemployment benefits, the employer is telling the state unemployment agency that it disagrees with your claim or believes you should not receive benefits. This does not always mean the employer is correct. It means the agency may need to review the facts, request information from both sides, issue a determination, or schedule an appeal hearing.

Employers commonly contest unemployment claims by arguing that:

• you quit voluntarily;
• you were fired for misconduct;
• you did not work long enough or earn enough wages to qualify;
• you were an independent contractor instead of an employee;
• you refused suitable work;
• you are not able or available to work; or
• the employer should not be charged for your benefits.

The most important thing you can do is respond with facts, documents, and a clear timeline. Do not rely only on your memory. Unemployment disputes are often decided based on whether the employee can explain what happened and support that explanation with evidence.

Why do employers contest unemployment claims?

Employers may contest unemployment claims for several reasons. Sometimes they believe the employee is not legally eligible for benefits. Sometimes they want to protect their unemployment insurance tax rate. Sometimes they contest the claim because they disagree with the employee’s version of how the job ended.

In some cases, the unemployment dispute is narrow: the only issue is whether you qualify for benefits. In other cases, the contest may be connected to a larger workplace problem. For example, an employer may claim “misconduct” after you reported harassment, complained about unpaid wages, requested medical leave, asked for an accommodation, or objected to illegal treatment at work.

If that happens, the unemployment dispute may overlap with potential claims for workplace retaliation, wrongful termination, discrimination, unpaid wages, or leave-related violations.

Common employer arguments and how employees can respond

Employer argument	What it may mean	Evidence that may help you respond	Possible legal issue
“The employee quit voluntarily.”	The employer may be arguing that you chose to leave and should not receive benefits.	Termination letter, texts, emails, schedule changes, proof of reduced hours, resignation context, witness names.	Constructive discharge, forced resignation, retaliation, wrongful termination.
“The employee was fired for misconduct.”	The employer may be trying to show you were terminated for behavior that disqualifies you from benefits.	Personnel file, disciplinary history, handbook, performance reviews, emails, lack of prior warnings, witness statements.	False misconduct allegation, retaliation, discrimination, pretext.
“The employee did not earn enough or work long enough.”	The dispute may involve wage history, base period earnings, or missing employer records.	Pay stubs, W-2s, direct deposit records, schedules, tax forms, payroll screenshots.	Wage record issue, misclassification, payroll errors.
“The worker was an independent contractor.”	The employer may argue you were not an employee covered by unemployment insurance.	Work schedule, control over work, pay records, company policies, equipment, supervision, job duties.	Employee misclassification, wage and hour violations.
“The employee refused work.”	The employer may claim you turned down suitable work after separation or during reduced hours.	Job offer details, pay rate, schedule, medical restrictions, transportation issues, written communications.	Leave rights, accommodation issues, retaliation, disputed work availability.

What happens after your employer contests your unemployment claim?

After you file for unemployment benefits, your former employer is usually notified. The employer may respond to the state agency and provide information about your separation from employment. If the employer disputes your eligibility, the agency may review documents, ask questions, request statements, or issue a written determination.

If the agency approves your claim, your employer may still have the right to appeal. If the agency denies your claim, you may have the right to appeal. Either way, the notice you receive should explain what decision was made, why it was made, and the deadline to appeal.

New Jersey and Pennsylvania unemployment appeal deadlines

Swartz Swidler represents employees in New Jersey and Pennsylvania, so it is important to understand that unemployment rules and deadlines can vary by state.

State	General appeal timing	What employees should do	Official resource
New Jersey	Claimants generally must appeal within 21 calendar days after the mailing date of the determination. Employer appeal deadlines may be shorter.	Read the determination, file the appeal before the deadline, and continue certifying for weekly benefits while waiting for the hearing.	NJ Department of Labor: Claimant appeal rights
Pennsylvania	Claimants and employers generally have 21 calendar days from the determination date listed on the notice to appeal to a UC Referee.	File the appeal on time, keep filing weekly claims while the appeal is pending, and prepare evidence for the hearing.	PA Department of Labor & Industry: Appealing a determination

This article provides general information. Your notice controls your specific deadline and appeal instructions.

Step-by-step: What to do when your employer contests unemployment benefits

1. Read the notice carefully

Do not skim the notice. Look for the reason your claim is being challenged, the determination date, the appeal deadline, the hearing date if one has been scheduled, and instructions for submitting documents or witness information.

If anything is unclear, contact the unemployment agency promptly. Waiting too long can make it harder to appeal or prepare.

2. Continue filing weekly claims or certifications

In many unemployment appeals, you must continue filing weekly claims or certifying for benefits while the dispute is pending. If you win your appeal, you may only receive benefits for the weeks you properly claimed or certified.

This is one of the most common mistakes employees make. Even if benefits are paused or denied, keep following your state’s weekly filing instructions unless the agency tells you otherwise.

3. Write a timeline of what happened

A timeline can help you organize the facts before you speak with the agency, attend a hearing, or contact a lawyer. Include:

• your hire date;
• your job title and duties;
• major schedule or pay changes;
• warnings, write-ups, or performance reviews;
• complaints you made to HR or management;
• requests for leave, medical accommodation, or schedule changes;
• the date and reason your job ended;
• what your employer told you at the time; and
• what your employer is now claiming in the unemployment process.

Pay close attention to inconsistencies. If your employer told you one thing when you were fired but gives the unemployment agency a different reason later, that may matter.

4. Gather evidence before the hearing

Your evidence should address the employer’s specific argument. If the employer says you quit, gather evidence showing whether you were actually fired, forced out, or left because working conditions became unreasonable. If the employer says you committed misconduct, gather documents that show your work history, lack of warnings, inconsistent discipline, or the real reason for the termination.

5. Prepare for the employer’s version of events

Unemployment hearings are often focused on a narrow question: why did the job end? Your employer may bring documents or witnesses to support its position. You should be prepared to explain your side clearly and calmly.

Do not exaggerate. Do not guess. Do not argue about every workplace problem if it is not relevant to the unemployment issue. Focus on the facts that show why you should be eligible for benefits.

6. Attend every scheduled hearing or meeting

If an appeal hearing is scheduled, attend it. Missing a hearing can seriously damage your claim. If you cannot attend for a valid reason, contact the agency as soon as possible and follow the required process to request a postponement or reopening.

7. Consider legal help if the dispute is connected to a bigger workplace issue

Not every unemployment contest requires an employment lawyer. But legal guidance may be important if your employer is making false accusations, claiming misconduct after you complained about illegal treatment, or using the unemployment process to support a termination that may have been unlawful.

You may want to speak with an employment lawyer if your unemployment dispute involves:

• termination after reporting discrimination or harassment;
• termination after requesting FMLA, medical leave, or a disability accommodation;
• termination after complaining about unpaid wages, overtime, or payroll problems;
• a sudden misconduct accusation after years of acceptable performance;
• pressure to resign instead of being fired;
• retaliation after reporting safety concerns or illegal conduct;
• classification as an independent contractor when the company controlled your work like an employee; or
• inconsistent reasons for your termination.

If your unemployment dispute overlaps with these issues, you may also want to read about what to do after a possible wrongful termination, how to prove workplace retaliation, and whether you can sue an employer for unpaid wages.

What if your employer says you quit?

Many unemployment disputes turn on whether the employee quit or was fired. If your employer says you quit, the agency may look closely at whether you voluntarily left or whether the employer effectively ended the job.

Relevant facts may include whether your hours were cut, your pay was reduced, your job duties changed, you were told not to return, you were pressured to resign, or you resigned because of serious workplace conditions.

If you resigned after discrimination, harassment, unpaid wages, unsafe conditions, denied leave, or retaliation, the unemployment issue may require careful explanation. A resignation does not always tell the full story.

What if your employer says you were fired for misconduct?

Employers often contest unemployment benefits by claiming misconduct. If this happens, do not rely only on saying, “That is not true.” Prepare documents and facts that show why the employer’s claim is wrong, exaggerated, inconsistent, or unrelated to why you were actually fired.

Useful evidence may include:

• positive performance reviews;
• lack of prior discipline;
• messages praising your work;
• proof that other employees were treated differently;
• proof that the alleged incident did not happen as described;
• proof that the employer changed its reason for firing you; and
• proof that the termination followed a protected complaint or request.

If the misconduct allegation appeared only after you complained about discrimination, harassment, leave interference, unpaid wages, or retaliation, that timing may matter.

What if your employer appeals after you were approved?

If your claim is approved, your employer may still appeal. That can be frustrating, especially if you already started receiving benefits. Read the appeal notice carefully, keep certifying for benefits, and prepare for the hearing.

An employer appeal does not automatically mean you will lose. The hearing is an opportunity for both sides to present evidence and testimony. Your job is to be prepared, organized, and focused on the facts that support your eligibility.

What if your unemployment benefits are denied?

If your claim is denied, you should receive a written determination explaining the reason and how to appeal. Act quickly. Appeal deadlines are short, and waiting can limit your options.

You may also find this related guide helpful: What to Do If You Are Denied Unemployment Benefits.

How an unemployment dispute can affect a workplace legal claim

An unemployment hearing is not the same as a wrongful termination, discrimination, retaliation, wage, or FMLA case. However, what is said in the unemployment process can still matter.

For example, your employer may state a reason for termination during the unemployment process. If that reason is different from what you were told when you were fired, the inconsistency may become important later. Your testimony, documents, and the employer’s statements may also help clarify the timeline of events.

This is why it is important to be accurate and consistent. Do not guess about facts you do not know. Do not minimize important events. Do not ignore documents that contradict the employer’s version of events.

Frequently asked questions

Can my employer stop me from getting unemployment benefits?

Your employer can contest your unemployment claim, but the state unemployment agency decides whether you are eligible. The employer’s objection is not the final word. You usually have the right to respond, provide evidence, and appeal an unfavorable determination.

What should I do if my employer lies during the unemployment process?

Stay focused on facts and evidence. Gather documents that contradict the employer’s claim, write a clear timeline, identify witnesses, and respond through the agency’s process. If the false statement is connected to retaliation, discrimination, or wrongful termination, consider speaking with an employment lawyer.

Should I keep filing weekly unemployment claims during an appeal?

Yes, if your state requires weekly claims or certifications, you should continue filing while the appeal is pending. If you win, you may only receive benefits for weeks you properly claimed or certified.

Do I need a lawyer for an unemployment appeal?

Some employees handle unemployment appeals on their own. However, a lawyer may be helpful if the employer is alleging misconduct, the facts are complicated, witnesses are involved, or the unemployment dispute overlaps with wrongful termination, retaliation, discrimination, unpaid wages, or leave-related issues.

Can an unemployment hearing affect a wrongful termination case?

It can. An unemployment hearing is separate from a wrongful termination case, but statements made by the employer or employee may become important later. Inconsistent employer explanations, documents, and testimony can sometimes help clarify what really happened.

What evidence should I bring to an unemployment hearing?

Bring the determination, appeal notice, termination documents, emails, texts, pay records, schedules, handbooks, warnings, performance reviews, medical or leave paperwork, complaint records, and witness information. The best evidence depends on why your employer is contesting the claim.

What if my employer says I quit but I was forced out?

Explain the circumstances clearly. Evidence may include reduced hours, changed job duties, pressure to resign, hostile conditions, written communications, or proof that you were told not to return. If you were pushed out after reporting illegal treatment, legal guidance may be especially important.

Contact Swartz Swidler

If your employer is contesting your unemployment benefits, you should act quickly. Deadlines are short, and the evidence you preserve now may affect both your unemployment claim and any related workplace legal issue.

Swartz Swidler helps employees in New Jersey, Pennsylvania, Philadelphia, and South Jersey understand their rights after job loss, retaliation, discrimination, harassment, wage disputes, and leave-related problems. If your employer is challenging your unemployment benefits after a termination, resignation, leave request, wage complaint, or workplace complaint, our attorneys can help you understand your options.

This article is for general informational purposes only and is not legal advice. Unemployment deadlines and eligibility rules depend on your state, your notice, and the facts of your situation.