I’ve worked for quite a few sleazy employers. Now, I have a history of switching jobs too many times. My last job was almost 2 years, but I had a lot of short-term stints before that.
One interviewer said “I’m concerned to hire you. If we have to fire you, we may be on the hook for your unemployment claim.”
The employer pays unemployment taxes. The tax is based on the amount of claims by ex-employees. This provides a disincentive for employers to hire someone, because their unemployment tax might increase if they’re forced to fire someone.
Employers are taxed based on amount of claims. There’s a flaw in this algorithm.
If you hire someone who was formerly receiving unemployment, you should receive a credit against your unemployment tax! As far as I can tell, the law doesn’t provide for this. The State is eager to tax, but the State rarely gives credit back.
Because my new employer hired me, they saved my ex-employer money in unemployment claims. Technically, my new employer should get a credit, because they saved the State unemployment money paid out.
My new employer is paying me less than my old employer, *BUT* they are paying me just barely enough that I would have lost my unemployment benefit if I refused the job. That was amusing. I would have taken it anyway, even if it was a little less. (The law in NY is that you must take any job offer that’s at least 80% of your last job, or you lose eligibility. They offered me 81% of my last salary.)
That is an amusing quirk of State law. If you hire someone who was formerly receiving unemployment benefits, you should get a tax credit! The unemployment tax is a disincentive for hiring someone. The State will raise your taxes if you hire someone and then fire them, which penalizes companies who ambitiously hire people. In the UK and Europe it’s far worse than in the USA, but there are also taxes on hiring in the USA also.