Dominion Payroll Blog

Tips to Help Safeguard Your Restaurant from Unemployment Claims

Written by Laura Lonergan | May 24, 2023 1:30:02 PM

Running a restaurant can be expensive, from the cost of materials to food. It adds up quickly. The management of a restaurant’s staff can prove to be quite costly as well, especially for an industry that is known for its high rate of employee turnover. By implementing effective strategies and adopting proactive measures, restaurant owners and managers can minimize the impact of unemployment claims on their businesses. In this article, we will provide valuable tips and insight to help navigate the intricacies of managing unemployment claims in the industry, enabling you to protect your financial stability and maintain a productive workforce. 

Effective Hiring Practices 

By hiring the right people from the start, you can minimize the likelihood of future unemployment claims. Take the time to carefully screen and interview candidates to ensure they possess the necessary skills and experience for the job. Consider using behavioral-based interviewing techniques to assess their reliability, teamwork, and problem-solving skills. Be sure to also check references and verify employment history to gain insight into a candidate’s track record. 

Make Sure New Hires are Signing Your Company Handbook 

Establishing clear and concise employee policies is crucial for reducing the risk of unemployment claims. Unemployment benefits should not be covering employees that were let go due to willful violation of the company’s policies. 

Ensure that your restaurant has a company handbook with comprehensive policies in place regarding attendance, punctuality, performance expectations, and a code of conduct. By having employees sign the company handbook, they are acknowledging that they must follow the company’s policies. If employees do not follow company policy and are terminated, this helps the company demonstrate that any violation was intentional. If your current handbook does not explicitly outline actions that could lead to termination, it could be wise to review and revise your policies.

Document All Warnings of Handbook Violations or Handbook Performance Issues 

Documenting all warnings of handbook violations or performance issues is essential for restaurant owners to avoid unemployment claim issues. By documenting these incidents, you’ll be able to provide crucial evidence in case of disputes or claims, demonstrating that policies are consistently enforced. It also helps create transparency, accountability, and a structured approach to managing employee issues, ultimately reducing the risk of unemployment claims and fostering a professional work environment. 

Minimizing unemployment claims in the restaurant industry requires a tailored approach. By implementing effective hiring practices, introducing clear and concise policies in your company handbook to be agreed and signed off on by new hires, and documenting any and all handbook violations or performance issues can mitigate the risks associated with unemployment claims. Taking these proactive steps can help your restaurant foster a productive and stable workforce while safeguarding your business. 

 

Click here to watch our recent webinar, Navigating Unemployment Claims in the Restaurant Industry, for more insight.

Contact us today at info@dominionpayroll.com to learn more about our services like Unemployment Costs Management or DP Boost, which partners you with one of our dedicated HR Advisors to help with everything from compliance to strategy to talent acquisition, so you can focus on running your business, not dealing with paperwork.