California’s Unemployment Insurance (UI) system is the largest such state system in the country, processing 1.5 million new claims per year and paying out more than $5.2 billion annually in UI checks. During the five years (1999-2004) that I was director of the state Employment Development Department, which administers the UI system, I found many California businesses paying too little attention to their UI accounts � to their financial detriment.

My colleague, Hilary Hardcastle, and I have compiled the five big mistakes that California businesses make in handling their UI claims, along with providing some advice on how to avoid these mistakes.