Posted On: January 2, 2009 by Charles Snyderman

Delaware Unemployment Compensation Primer

If you're an employer here in Delaware, it's important to understand the rules relating to unemployment compensation. A great place to start is the Delaware Dept. of Labor's "Unemployment Insurance Handbook For Employers."

You should also become familiar with the term "just cause." Let's say you've just received written notice that an employee you recently fired has applied for unemployment compensation. You're going to have to decide whether or not to challenge this employee's eligibility for benefits. In making this determination, a term that often comes up is "just cause."

As a Delaware business attorney, I reviewed this issue just last week with a business owner. Simply stated, an employee who is fired for just cause is disqualified from receiving unemployment compensation benefits. The Courts in Delaware define just cause to mean a willful or wanton act or pattern of conduct that's in violation of (1) the employer's interest, (2) the employee’s duties, or (3) the employee’s expected standard of conduct.

“Willful and wanton conduct" means conduct that's evidenced by either a conscious act by the employee or reckless indifference that leads to a deviation from established and acceptable workplace performance.

Just cause has been found to exist, for example, where an employee failed to comply with his employer's policies. As the employer, you'll have to show that the policy actually existed, that the employee was aware of the policy, and that the employee knew a violation of the policy could be reason for termination.

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