PattyPA,

I really appreciate the feedback. You make some great points. I've heard several anecdotal horror stories, such as state UI rates going up by 1-2% after a single claim, but have no idea if this is true.

The person in question had another job, nearly full-time, until he quit in September 2010. He claims that if I let him go, it would be the perfect situation for him as he could then receive unemployment benefits based on his income from that job as well, even though he voluntarily quit. This may be irrelevant. However, once again, I've heard that the size of his benefit, even if it was not based solely on income from his job with my company, could impact my UI rates.

Thanks again for the help. If you have any further thoughts on this situation that you wish to share, I'd appreciate that.