Legal Center Win Will Help Illinois Firms Facing Unemployment Compensation Hearings

The NFIB Small Business Legal Center scored another victory for small businesses in Illinois. This victory will allow business owners to use anyone they wish to represent them in unemployment compensation hearings and prevents them from being forced to hire expensive attorneys.

The Legal Center filed a friend-of-the-court brief urging the first district appellate court of Illinois find that it is permissible for employer representatives who are not licensed attorneys to participate in Illinois Department of Employment Security hearings on unemployment compensation claims. The court agreed.

The precedent of allowing non-lawyers to represent employers in unemployment compensation claims was being challenged as a violation of the court’s rule that only lawyers may participate in the practice of law. 

“The reality is that unemployment proceedings are not legal proceedings requiring the use of attorneys,” said Karen Harned, executive director of the Legal Center. “An unemployment hearing is far more speedy and informal. There is no judge, no discovery, no right to a jury, and the rules of evidence do not apply. Forcing business owners to hire an attorney for these proceedings is unnecessary and will only serve as an additional barrier for small businesses who want to defend themselves against frivolous claims.”

Additionally, the cost of legal representation may exceed the cost of the benefits at stake. Attorney representation made it too expensive for most small employers to participate in unemployment proceedings, which, in turn, increased the error rate — meaning more appeals, longer delays, more wasted money, and higher payroll taxes.

“This ruling is in the public’s and the state’s best interests,” said Harned. “We are delighted the court found in favor of allowing non-lawyers to represent employers in these cases.”

The case is Grafner v. Illinois Department of Employment Security et al.