Thank you for the additional information.
If the employee worked at least 1,250 hours during their year of employment and you have at least 50 employees, then they would normally be eligible for up to 12 weeks of unpaid leave and that should have been provided to the employee. So there is a risk that they could allege wrongful termination in violation of the FMLA if that is the case.
As to the issue of unemployment, the employee would typically file for disability benefits through the state for the period they are unable to work. Once they are released to work by their physician, then they could normally apply for unemployment benefits and likely obtain them through your account.
If the employee remains unable to work, then that would normally represent a basis to challenge their right to benefits, and I would contest their eligibility on that basis, indicating that the employee was released from work because they were unable to perform the tasks of their job and they were not simply laid off.
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