Maxson Firm Wins Fayette Circuit Court Lawsuit Reversing Kentucky Unemployment Benefits Denial

James Maxson, principal of Maxson Firm, said the decision is significant because unemployment misconduct must be based on evidence, not merely an employer’s characterization of events.

“This decision matters because unemployment misconduct cannot be created by forcing an employee to accept disputed blame in writing,” Maxson said. “If an employer claims a worker made disqualifying mistakes, those mistakes still have to be supported by evidence. An employee should not lose unemployment benefits simply because he refused to memorialize an accusation he reasonably disputed.”

Kentucky businesses would be better served by a UI tax rate that shared an inverse relationship to the unemployment rate. As the economy drops, employers would get a small tax break, and as the economy ascends, employers would top off the Trust Fund in advance of the next downturn. Much like the Fed’s use of interest rates as an oscillation dampener, the state’s UI tax rate could function as a subtle airbrake when the economy is going too fast and a tailwind during economic downturns.