Employer Problems

[Unregistered]

Hi all, haven't been on here for years, but I need to ask for some advice...I have a group family childcare and had an employee this year that I needed only until September. I told her in May that she needed to find another job in August when school started. I knew I'd be sending 3 to kindy and wanted to drop from 12 with an employee to 9 by myself.

So in May when we discuss this, she decided to open her own FCC in her home. I warned that licensing takes time and building clients takes time, but offered to help as much as I could. I mentored her, wrote contacts and policies with her, even walked through her home prior to inspection. So she had her full license at the end of July and started interviewing.

Well, sure enough, having a full roster didn't happen overnight. So in September after being on her own for two weeks with only 1 daycare kiddo, she filed for unemployment on me. Even though I protested, she won and has been drawing ever since. She has four dc kids currently, and I know she's making some money, but she's still draining my employer account.

I want to hire another employee next summer but I can't now because it will cost me so much more in UI. I know she's committing fraud: she's making income at her business and lying to the system saying she's turning in applications for a job.

The worst part is she thinks we're still friends and texts me often asking for advice. I'm so angry I can't even soak to her, but I think she needs to know how wrong this is and that I'm angry and feel used.

What to do?

[Snowmom]

I'd turn her in.

https://www.dol.gov/general/maps/fraud

[BumbleBee]

Ditto. I'd report her.

[Unregistered]

Thank you, yes I have reported her to the fraud line twice. I've left messages and even sent them a copy of her state daycare license. No response!

[Blackcat31]

Was your employee contract for a specific date or just open ended? Curious if her job had an end date?

What state are you in?

[CityGarden]

Wow I am sorry this is happening. I know some people do not quite realize "where" the money comes from with "unemployment".... some think it is just "free" money from the government and they are okay with that - I am guess she does not realize you are paying this out of pocket.....

That said, I would love advice on how to hire an employee without the stress of that in the future. What can we do to protect ourselves from this?

[BrynleeJean]

Wow im so sorry this is happening to you.
i have zero experience in this area.
Maybe tell her you know her situation and that your obligated to contact fraud agencies?
maybe shell back off with just the words if she really doesn't know that its affecting you.
Maybe I'm wrong but I don't see what harm that would do, she would only be able so say my old employer knew I was committing fraud and threatened to tell on me is how I see it. maybe I'm wrong again.
Good luck I'm sorry

[happymom]

There is a very good chance she doesn't know it's affecting you. From my experience, most employees do not understand that the employer is paying unemployment benefits....and they believe that it comes 100% from a government set up agency.

[Unregistered]

How do you know she's committing fraud? You can work and collect a reduced amount if your earnings are less than unemployment. With one child she probably isn't making much.

[Unregistered]

How do you know she's committing fraud? You can work and collect a reduced amount if your earnings are less than unemployment. With one child she probably isn't making much.

when my husband lost his job he was not able to get unemployment benefits. because by our documents he owes 50% of our daycare. No one was interested does the daycare make some money or not.

[Unregistered]

Sorry, long busy day with the kiddos. She currently has four daycare kids. I've left messages with unemployment, emailed them her license number, everything I can think of. They are still awarding her benefits. She's making nearly $800 a week from the daycare income (I know this because I wrote her contracts for her). I'm in Kansas btw.

When she started in January, our plan was to continue on indefinitely with twelve kids ages 18 months+. However, as time went on I realized I could make more money by having ten three year olds myself and I enjoyed teaching preschool much more; I connect with my older kids on a much deeper level and feel that I can offer them more.

So in May I asked her to find another job by September (essentially a 90 day notice) and she proposed opening her own business. I happily agreed to help her because I want her to have a great life, I was in the position to share my 10+ years of experience, and I also felt very guilty about changing plans.

Was a 90 day notice not fair enough? Was helping her start her business from scratch and bending over backwards to help her not enough? I let her go early on some afternoons with pay so she could run errands for her business.

Should I contact her in any way and let her know how disappointed and angry I am? Would you? The state of KS apparently doesn't care about the fraud, but I am deeply hurt. Should I stop taking it personally and just forget about it? I need to find some peace with this, you know?

[Blackcat31]

Sorry, long busy day with the kiddos. She currently has four daycare kids. I've left messages with unemployment, emailed them her license number, everything I can think of. They are still awarding her benefits. She's making nearly $800 a week from the daycare income (I know this because I wrote her contracts for her). I'm in Kansas btw.

When she started in January, our plan was to continue on indefinitely with twelve kids ages 18 months+. However, as time went on I realized I could make more money by having ten three year olds myself and I enjoyed teaching preschool much more; I connect with my older kids on a much deeper level and feel that I can offer them more.

So in May I asked her to find another job by September (essentially a 90 day notice) and she proposed opening her own business. I happily agreed to help her because I want her to have a great life, I was in the position to share my 10+ years of experience, and I also felt very guilty about changing plans.

Was a 90 day notice not fair enough? Was helping her start her business from scratch and bending over backwards to help her not enough? I let her go early on some afternoons with pay so she could run errands for her business.

Should I contact her in any way and let her know how disappointed and angry I am? Would you? The state of KS apparently doesn't care about the fraud, but I am deeply hurt. Should I stop taking it personally and just forget about it? I need to find some peace with this, you know?

I think it ****s when others don’t recognize or acknowledge things we’ve done for them but I also think how much it bothers us seems directly connected to our expectations of reciprocation.

Is there any chance she really has no idea that collecting unemployment benefits is negatively affecting you? Financially and/or personally?

I don’t know the answers in regards to “getting over it” and not taking it personally as I’ve been in your shoes and it’s always complicated but I do hope you’re able to find some sort of peace with it all.

[mommyneedsadayoff]

Next time she messages you, I would respond with a polite, but firm response letting her know your door is closed. "Its unfortunate, but after you chose to file for unemployment when I gave you 3 months and a lot of help to secure other employment, I have a bitter taste in my mouth concerning our relationship. You may not be aware, but unemployment comes from my pocket, so I feel I have helped you enough at this point. I wish you the best with your daycare, but I feel it's best to move on from our relationship. Best of luck to you and your family."

[Alwaysgreener]

You should contact Tom Copeland and see what advice he can give you.
I wonder if you could sue her....

[Josiegirl]

You should contact Tom Copeland and see what advice he can give you.
I wonder if you could sue her....

Great idea!
I'm sorry you're going through this. When we think of unemployment insurance, most people probably only think of corporations and big biz, not a self employed small business owner. I think, I'd have to call her out personally on it; let her know how it's directly affecting you and you will pursue this further. I'd also make a direct call to the company to report the fraud. Or is that not a possibility? Maybe you've already done that and spoken to someone? I'd push that and make yourself the squeaky wheel, KWIM?