Unemployment Insurance – Broken & Broke

I am a business owner in the State of Indiana.  During the past  year, Indiana has had to borrow 650 million dollars from the federal government to supplement its unemployment insurance program.

One would think that, due to the state of the economy, there are just too many people out of work, therefore causing an undue strain on the unemployment fund.  This is not the case!

In Indiana, just as every other state, the unemployment system is far too often used as a money tree for those who choose not to work.  I work in the service industry and see a large turnover rate at my company, often 95% a year.  Most of my employees stay for only a few months, violate a few policies and procedures that will require their employment to be terminated, then collect unemployment.  More often than not, even though my company has an above par disciplinary system and I protest every claim, a liberal judge will grant unemployment benefits.    

At least once a month, I receive a notification that an employee, who has not worked for me for well over a year, is filing for unemployment benefits against my company.  Employees know how to work the system.  If he/she files enough claims for unemployment, and a company fails to contest their claim, then unemployment benefits will be granted.

I don’t know how many times (maybe 35) that a current active employee has filed for unemployment benefits against my company.  Although I try to fight all unemployment claims, I’ve missed a couple and, believe it or not, an employee working 40 hours a week will get unemployment benefits. 

A prime example of this broken system is the employee who started a company similar to mine, copied my website and marketing materials word for word, and went after my clients.  I of course fired him and he of course received unemployment benefits.

Since the State of Indiana refuses to fix this broken system and cannot continue to take federal assistance to keep it afloat, a new plan calls for businesses to kick in more unemployment tax dollars.  HELLO INDIANA – I can’t pay anymore in taxes!!!  More taxes will put me out of business, which will result in “real” claims for unemployment benefits.  Soon there will not be enough good hardworking Americans to take care of those who refuse to work.

Am I the only one that has noticed how the federal and state governments are creating and fostering a system that rewards anyone who adopts a “no can do” attitude?  Am I the only one who worries that all of us, just like a heard of cattle, are being led down a one-way road to the slaughter house?   

You and I know what needs to be done to fix this broken system.  STOP GIVING MONEY AWAY!  Why can’t our government figure it out?