It is best to notify the hearing officer, or whatever level you're at, that you have decided to abandon the appeal. Generally you need only to state that you have changed your mind. That protects your record in case you ever have an unemployment claim in the future.
This answer does not create an attorney-client relationship. It is advisable to consult with an attorney with full disclosure of relevant facts for a comprehensive leagl opinion.
You will not be punished for not appearing, but best to call in advance and notify hearing officer you abandon your appeal. She will not ask you why, bu if she does, just say you do not wish to pursue the appeal.
If you don't call, it may hurt you if you ever again seek unemployment compensation benefits.
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