When to Fight Your Ex-Employee's Benefits Claim

In virtually all states I'm aware of, your failure to challenge an ex-employee's application for benefits cannot be used by the ex-employee as evidence that you agreed with her explanation of the reason you terminated her. So if you're concerned you'll lose it during the proceedings, you have little to lose by not showing up. Let your ex-employee get her benefits, and accept the higher payments you'll have to make to your state labor department as a cost of doing business (they're fully deductible for tax purposes, by the way).

If you do decide to challenge, I'd ask if you can have an attorney present -- many states allow this, and it's probably worth an hour or two of your attorney's time to keep you out of trouble. Keep in mind, though, that your ex-employee may also have an attorney present, so what starts out as a hearing on her unemployment claim may end up being the first deposition in her wrongful termination or discrimination lawsuit.