By Fred S. Steingold

Although the unemployment compensation system varies in each state, some general principles apply in most cases. An unemployment claim will typically proceed through the steps described below.

The claim is filed. The process starts when a former employee files a claim with the state unemployment program. The employer receives written notice of the claim and can file a written objection—usually required within seven to ten days.

Eligibility is determined. The state agency makes an initial determination of whether the former employee is eligible to get unemployment benefits. Usually there’s no hearing at this stage.

The referee conducts a hearing. If the employer or the former employee disagree with the initial eligibility decision, they can appeal the decision and have a hearing before a referee—a hearing officer who is on the staff of the state agency. Normally conducted in a private room at the unemployment office, this is the most important step in the process. At the hearing, the employer and the former employee each have their say. In addition, each is entitled to have a lawyer there and to present witnesses and any relevant written records, such as employee evaluations.

Administrative appeal. If the employer or the former employee disagree with the referee's decision, they can appeal it to an administrative agency, such as a board of review. This appeal is usually based solely on the testimony and documents recorded at the referee’s hearing, although in some states the review board can hear additional evidence. While the review board is free to draw its own conclusions from the evidence and overrule the referee, more often than not it goes along with the referee’s ruling.

Judicial appeal. If the employer or the former employee are unhappy with the board of review's decision, they can appeal to the state court system, but this is rare. Typically, a court will overturn the agency’s decision only if the decision is contrary to law or isn’t supported by substantial evidence.

Adapted from The Employer’s Legal Handbook, by attorney Fred S. Steingold (Nolo.com).