Handling Unemployment Claims with Confidence

Tips for restaurant HR leaders and operators to respond more effectively—without wasting time or losing money

Years ago, when I was leading HR at Potbelly, I got hit with an unemployment claim from a former team member who had clearly quit. They walked off the job and never came back, so I thought, “No write-up, no drama, easy win.” 

But then I read the claim response our manager submitted: “Employee left due to stress. Wasn’t a good fit.” 

That vague language cost us the case—and the company money. That moment stuck with me.

Because here’s the truth: Even when we’re right, if our documentation is weak or our response is unclear, we’re going to lose unemployment claims. And in a high-turnover industry like restaurants, that adds up quickly.

Let’s fix that.

Whether you’re a seasoned HR pro or a restaurant operator trying to wear every hat, here’s how to handle unemployment claims with clarity, confidence, and control.

The Reality of Turnover

Turnover is a part of restaurant life. In fact, according to recent stats, restaurant industry turnover hovers around 75 percent—and for some roles, it’s even higher. That means unemployment claims will keep landing in your inbox.

And that means responding poorly to just a few claims each year can cost thousands in money, time, stress, and avoidable audits.

Common Mistakes That Lead to Costly Claims

Here are a few things I’ve seen time and again (at Potbelly, Dunkin’, and with clients at Restaurant HR Group) that lead to lost unemployment claims:

• No Documentation. You’d be shocked how often someone is terminated for “performance” but there’s zero record of feedback, warnings, or coaching.
• Vague Responses. Saying someone “wasn’t a good fit” or “had a bad attitude” won’t win a claim. Stick to facts, not feelings.
• Missed Deadlines. Each state has specific timeframes to respond. Miss the deadline? You’re out of luck, no matter how solid your case is.
• Manager-HR Disconnect. If a manager says one thing and HR says another, guess who looks unreliable? Your company, not the employee.

How to Write a Solid Claim Response

When responding to an unemployment claim, you need to tell a clear, professional story. Here’s what to include:

• Dates & Timeline: When the issues began, what happened, and when termination occurred.
• Policy Violations: Reference the specific handbook policy that was violated.
• Prior Warnings or Write-ups: Attach them! A verbal warning doesn’t exist unless it’s documented.
• Final Incident: Describe exactly what led to termination (or separation, if they quit).
• Professional Language: No sarcasm, no emotion. Just straightforward, factual information.

Quick Tip: Keep a “Termination Snapshot” document on file for every involuntary separation. It makes responding to claims 10x easier.

Sample Scenario: The No-Call, No-Show

Let’s say you terminate someone after three consecutive no-call, no-shows. A solid unemployment claim response would look like this:

“Employee failed to report to work on [date], [date], and [date]. Per our attendance policy (see attached), three consecutive absences without notice is considered job abandonment. The employee was terminated on [date] for violating this policy. See attached write-up from [manager name].”

Boom! Simple. Clear. Winnable.

Now compare that to:

“Employee stopped showing up. We assumed they quit.”

One presents a clear case. One doesn’t.

Operators + HR = The Dream Team

We work with many multi-unit restaurant brands, and we’ve seen how miscommunication between operators, managers, and HR complicates the claims process. Operators and managers are the eyes and ears on the ground—they know what happened. But HR is tasked with putting it on paper. If there’s a disconnect between what was observed and what’s documented, even a strong case can unravel.

Here’s how to get everyone on the same page:

• Train your managers to document early and often.
• Create a simple form or template they can use for every coaching conversation.
• Make sure managers alert HR the moment an unemployment claim comes in—not three days before it’s due.

When You Lose (Even If You Shouldn’t Have)

It’s frustrating to lose a claim. I get it. But don’t just grumble and move on.

When you lose an unemployment claim:

• Request the decision rationale from the state.
• Review your documentation and response.
• Ask yourself: “What could we have done better?”

Sometimes you’ll realize you missed a piece of paperwork. Other times, it’ll remind you to update your policies or better coach your managers. Every claim is a chance to sharpen your process.

Five Unemployment Claim Commandments

To keep this simple, here are five things I always tell our HR leaders and clients:

1. Document everything —even the “small stuff.”

2. Be specific —name dates, policies, and actions.

3. Don’t delay —respond to claims within 48 hours.

4. Train your managers —especially on documentation and communication.

5. Stay calm and confident —panic is contagious.

Clarity Wins

Unemployment claims don’t have to be a burden. With the right systems, training, and partnership between HR and operators, you can respond confidently, protect your business, and save time and money.

At Restaurant HR Group, this is one of the first things we help our clients get right because getting it wrong is just too costly. So, take the time now to set up your process, train your team, and begin treating unemployment claims as an opportunity to get sharper, stronger, and more compliant.

Clarity wins. Confidence follows. And the better your process, the easier every claim becomes.