It seems that unemployment shouldn't function that way: the employer has to actively deny the UI claim, not have to do work to make their own UI premiums go up.

It seems that unemployment shouldn't function that way: the employer has to actively deny the UI claim, not have to do work to make their own UI premiums go up. Said friend may also suffer from social anxiety and just not want to talk to the UI office. By all means, anyone in this situation should call your state's unemployment office to find out. The worst they can do is say no. The one time I got laid off I was amazed at how nice they were.