Incorporating Unemployment Compensation Law Into Your Practice
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1 Incrprating Unemplyment Cmpensatin Law Int Yur Practice February 22, 2017 Presented by: Crey J. Mwrey, Esquire Rieders, Travis Law Firm 161 West Third Street Williamsprt, PA
2 Prefatry Matters Unemplyment Cmpensatin Law (43 P.S ) Public Plicy (43 P.S. 752) Ecnmic insecurity due t unemplyment is a serius menace Invluntary unemplyment and resulting indigency falls with crushing frce Calls fr setting aside f financial reserves Prtect general welfare by exercise f plice pwers 2
3 Basic Principles Enacted t prtect wrkers wh suffer lss f incme due t separatin frm emplyment thrugh n fault f their wn Liberally cnstrued in favr f claimant Fcus nt n whether emplyer had right t terminate emplyee Fcus n circumstances f separatin frm emplyment Claimant may be disqualified frm receiving benefits when: Cmmits willful miscnduct (43 P.S. 802(e)); Quits withut necessitus and cmpelling cause (43 P.S. 802(b)); r Engages in activity which therwise renders claimant unsuitable fr wrk (43 P.S. 752) 3
4 Claimant Eligibility Requirements (43 P.S. 801) Separated frm wrk r reduced t part-time due t lack f wrk Satisfy minimum base year earnings Earn mre than set amunt in year preceding applicatin fr benefits (e.g., $9,500 fr calendar year 2016) Actively search fr suitable emplyment, including: Register with CareerLink within 30 days f applying fr benefits Pst resume n CareerLink system Apply fr psitins that ffer emplyment and wages similar t prir emplyment within 45- minute cmmute Active search nt required if laid ff fr lack f wrk and emplyer advised f date claimant will return t wrk Made valid applicatin fr benefits Be able t wrk and available fr suitable wrk Unemplyed fr waiting perid f ne week D nt delay in filing applicatin fr benefits 4
5 Claimant Ineligible fr Benefits (43 P.S. 802) Fail t apply fr suitable wrk r refuse t participate in reemplyment services Fail t accept ffer f suitable full-time wrk t pursue seasnal r part-time emplyment Vluntarily leave wrk withut necessitus and cmpelling cause Received r is seeking UC benefits in anther state Wrk stppage due t labr dispute (ther than lck-ut) Discharge r suspensin due t: Willful miscnduct; r Failure t submit t and/r pass drug test pursuant t emplyer s established substance abuse plicy Engage in self emplyment Separatin fr purpse f receiving pensin, retirement pay, annuity, r similar peridic payments (i.e., must still be attached t wrk frce) 5
6 Willful Miscnduct (43 P.S. 802(e)) In Elser v. UCBR, 967 A.2d 1064, 1069 n.7 (Pa. Cmmw. 2009), willful miscnduct is defined as: Wantn and willful disregard f emplyer s interest; Deliberate vilatin f rules; Disregard standards f behavir which emplyer can rightfully expect frm emplyee; r Negligence which manifests culpability, wrngful intent, evil design r intentinal and substantial disregard fr emplyer s interests r emplyee s duties and bligatins Generally, negligent/unintentinal cnduct is nt willful miscnduct. T qualify as willful miscnduct, negligence must be f such magnitude as t indicat[e] an intentinal disregard f the emplyer s interest r the emplyee s duties. (Navickas v. UCBR, 787 A.2d 284, 289 (Pa. 2001)) 6
7 Willful Miscnduct (Cnt d.) (43 P.S. 802(e)) Emplyer has burden (Navickas v. UCRB, 787 A.2d 284, 288 (Pa. 2001)) Emplyee s cnduct must directly reflect upn ability t perfrm assigned duties (Altemus v. UCBR, 681 A.2d 866, 869 (Pa. Cmmw. 1996) Surrunding circumstances must be cnsidered Gd faith r reasnable cnduct may be acceptable excuse fr therwise willful miscnduct 7
8 Willful Miscnduct Vilatin f Emplyer Rule/Plicy Emplyer has burden t shw: Existence f rule; Claimant knew abut rule; Claimant vilated rule; and, if applicable Emplyer cmplied with disciplinary plicy pertaining t rule If emplyer meets burden, burden shifts t claimant t shw that: Rule is unreasnable; r Gd cause exists fr vilating rule (Cunty f Luzerne v. UCBR, 611 A.2d 1335 (Pa. Cmmw. 1992)) 8
9 Willful Miscnduct Yes By misrepresenting whereabuts n expense reprts, claimant knwingly disregarded emplyer s interests and vilated the standard that emplyer had right t expect (Rssi v. UCBR, 676 A.2d 194, 199 (Pa. 1996)) Claimant s vilatin f emplyer s privacy expectatin cnstitutes disregard f standards f behavir emplyer has right t expect f emplyee (Schreder v. UCBR, 846 A.2d 790, 793 (Pa. Cmmw. 2004)) [A]ccessing persnal and nn-wrk-related websites while being paid t wrk by the emplyer is cntrary t the emplyer s interests (Baldauf v. UCBR, 854 A.2d 689, 692 (Pa. Cmmw. 2004)) Using emplyer s cmputer in manner that vilates emplyer s plicy can cnstitute willful miscnduct, even if vilatin did nt ccur during wrk hurs r at wrk (Burchell v. UCBR, 848 A.2d 1082, 1085 (Pa. Cmmw. 2004)) 9
10 Willful Miscnduct N Entry int intersectin while driving ambulance withut yielding right-f-way was merely a negligent act resulting in an autmbile accident (Finch v. UCBR, 692 A.2d 619 (Pa. Cmmw. 1997)) Nurse s inadvertent mistake f failing t prperly dilute antibitic des nt cnstitute willful miscnduct (Navickas v. UCBR, 787 A.2d 284 (Pa. 2001)) [A]bsent any evidence linking claimant s ff-duty drug usage with her wrk perfrmance, she culd nt be denied benefits n thery f willful miscnduct (Burger v. UCBR, 801 A.2d 487, 488 (Pa. 2002)) 10
11 Disparate Treatment Claimant nt disqualified frm benefits where emplyer failed t terminate similarly situated c-wrkers fr same willful miscnduct and emplyer des nt have prper reasn fr disparate treatment (Elec. Material C. v. UCBR, 664 A.2d 1112 (Pa. Cmmw. 1995); and American Racing Equip. v. UCBR, 601 A.2d 480 (Pa. Cmmw. 1991)) 11
12 Vluntary Quit Necessitus and Cmpelling Cause (43 P.S. 802(b)) Ineligible fr cmpensatin fr any week in which unemplyment due t vluntarily leaving wrk withut necessitus and cmpelling cause Claimant has burden (Martin v. UCBR, 749 A.2d 541 (Pa. Cmmw. 2000)) Standard: Circumstances existed which prduced real and substantial pressure t terminate claimant s emplyment; Like circumstances wuld cmpel reasnable persn t act in same manner; Claimant acted with rdinary cmmn sense; and Claimant made reasnable effrt t preserve emplyment (Prcit v. UCBR, 945 A.2d 261, 264 (Pa. Cmmw. 2008)) 12
13 Vluntary Quit Necessitus and Cmpelling Cause (Cnt d) Sexual harassment Can be necessitus and cmpelling cause (Andrews v. UCBR, 698 A.2d 151 (Pa. Cmmw. 1997)) Claimant sexually harassed by immediate supervisr did nt have necessitus and cmpelling cause t quit because she failed t reprt sexual harassment (Martin v. UCBR, 749 A.2d 541 (Pa. Cmmw. 2000)) Hstile Wrk Envirnment Can be necessitus and cmpelling cause Claimant must first take all reasnable steps t preserve emplyment relatinship, including infrming supervisrs abut abuse (Prc v. UCBR, 828 A.2d 426 (Pa. Cmmw. 2003)) Unsafe wrking cnditins Can be necessitus and cmpelling cause (Rapid Pallet v. UCBR, 707 A.2d 636 (Pa. Cmmw. 1998)) 13
14 Necessitus and Cmpelling Cause Medical Cnditin Medical cnditin that limits claimant s ability t perfrm wrk duties can be necessitus and cmpelling cause (St. Clair Hsp. v. UCBR, 2017 Pa. Cmmw. LEXIS 16 (Pa. Cmmw. Feb. 2, 2017)) UC Law nt intended t prvide health and disability benefits fr ill emplyee wh is nt physically able and available fr participatin in wrk frce Therefre, must be able t wrk and available fr suitable wrk Standard: Existence f medical cnditin; Infrm emplyer f cnditin; and Be able and available t wrk if reasnable accmmdatins can be made r ther suitable wrk is ffered 14
15 Vluntary Quit Fllwing a Spuse Tw additinal requirements: Spuse mved fr reasns beynd his/her cntrl, and decisin was reasnable and made in gd faith; and Cuple wuld face ecnmic hardship in maintaining tw residences r mve resulted in insurmuntable cmmute (Prcit v. UCBR, 945 A.2d 261, 264 (Pa. Cmmw. 2008)) 15
16 Eligible fr Benefits? Educatrs ver summer break N (43 P.S (1)) Educatr n sabbatical leave N (43 P.S (1)) Prfessinal athletes during the ff seasn N (43 P.S ) Hwever, must be reasnable assurance that athlete will perfrm services next seasn Aliens Yes, if claimant lawfully admitted fr permanent residence r therwise permanently residing in US under clr f law (43 P.S (a)) Officers f a crpratin deemed t be self-emplyed because f exercising a substantial degree f cntrl ver crpratin Yes (43 P.S ) Seasnal wrkers in fruit and vegetable fd prcessing N, fr any week f unemplyment ccurring utside f nrmal seasnal perid f peratin (43 P.S (a)) Seasnal wrk timeframe cannt exceed 180 days in a calendar year Incarcerated claimant N, fr any weeks f unemplyment during which claimant is incarcerated after a cnvictin (43 P.S ) Deceased claimant Yes, but nly fr accrued benefits due t deceased claimant; nt fr prspective benefits (43 P.S. 803) Paid t persns having interest in estate f deceased 16
17 Eligible fr Benefits Certain Emplyees f the Cmmnwealth r Plitical Subdivisin Theref? (43 P.S. 892, 911) Elected fficials N Inmates f custdial r penal institutins wh receive cmpensatin fr services rendered therein N Members f a legislative bdy N Members f judiciary f Cmmnwealth r plitical subdivisin N 17
18 Eligible fr Benefits Emplyees f Nnprfit Organizatins? Includes a religius, charitable, educatinal, r ther rganizatin described in sectin 501(c)(3) f the Federal Internal Revenue Cde f 1954 (43 P.S. 901) Emplyees theref are eligible fr benefits (43 P.S. 902) 18
19 Rate and Amunt f Cmpensatin (43 P.S. 804) Determined by table in this sectin Weekly benefit rate cmputed based n greater f: Claimant s highest quarterly wage; r 50% f claimant s full-time weekly wage Hwever, cannt exceed 2/3 f full-time weekly wage Current maximum weekly benefit rate is $573 If weekly benefit rate is less than $70, claimant is ineligible fr benefits Entitled t additinal $5 per week fr dependent spuse r child, and additinal $3 fr ne ther dependent child (cannt exceed ttal f additinal $8) Generally, can receive benefits fr maximum f 26 weeks 19
20 Applicatin fr Benefits (43 P.S. 821) Applicatin submitted by emplyee Respnsive applicatin submitted by emplyer Representative calls emplyee Representative calls emplyer Representative issues Ntice f Determinatin Findings f Fact Cnclusins f Law 15 calendar days t appeal 20
21 Held befre Referee Appeal Hearing (43 P.S. 822) Referee has pwer t issue subpenas t attend and testify and t prduce dcuments, upn request f party (43 P.S. 826) Must affrd parties a reasnable pprtunity fr a fair hearing Parties can participate via telephne, withut regard t distance f hearing lcatin (43 P.S. 825) Hearing must be held within cunty in which emplyee regularly reprts t wrk, unless parties and bard agree t ther suitable place (43 P.S ) Referee usually participates in questining witnesses De nv review (43 P.S. 823(b)) 21
22 Appeal Hearing (Cnt d) (43 P.S. 822) Right t representatin by attrney r ther representative (43 P.S. 774) Claimant had right t have suspended attrney represent him at UC hearing (Pwell v. UCBR, 2015 Pa. Cmmw. Lexis 483 (2015)) Nn-lawyers representing parties in UC prceedings were nt practicing law, therefre, 43 P.S. 774 did nt vilate Pa. Cnst. Art. V, 10 (Piunti v. UCBR, 933 A.2d 135 (Pa. Cmmw. 2007); Pwell v. UCBR, 2015 Pa. Cmmw. Lexis 483 (2015)) 15 calendar days t appeal frm referee s decisin Hearings are electrnically recrded Appeal triggers transcript t be prepared Practice tip: Regardless f whether Appellant r Appellee, make written request fr transcript at earliest pprtunity 22
23 UC Bard f Review (43 P.S. 824) Must affrd parties reasnable pprtunity fr fair hearing Either party can request hearing befre the UCBR, but rarely granted Appeal generally decided n the briefs Referee s findings f fact and credibility determinatins given deference Appeal limited t recrd made at hearing befre referee UCBR has pwer t affirm, mdify, r reverse referee s decisin, r remand t referee and direct t take additinal evidence Further appeal is t Cmmnwealth Curt Scpe f review f UCBR s determinatin is whether the adjudicatin vilates the cnstitutinal rights f the appellant, the adjudicatin is cntrary t law, there is a vilatin f the Bard s prcedure, r a finding f fact necessary t the decisin is nt supprted by substantial evidence (Navickas, 787 A.2d at 288 (citing Myers v. UCBR, 625 A.2d 622, 624 (Pa. 1993)) UCBR makes factual findings and determines credibility f witnesses, which will remain undisturbed n appeal unless nt supprted by substantial evidence f recrd as a whle (Curran v. UCBR, 752 A.2d 938, 940 (Pa. Cmmw. 2000)) 23
24 Back Wage Awards r Overpayment Payment f Benefits If claimant initially denied benefits, but later btains benefits n appeal, claimant entitled t back wage awards If claimant initially btains benefits, but later denied benefits n appeal, claimant may r may nt have t repay benefits Fault Overpayment (43 P.S. 874(a)) N Fault Overpayment (43 P.S. 874(b)) 24
25 Miscellaneus Matters Findings f fact and cnclusins f law nt binding in prceeding in anther frum (43 P.S. 829) N agreement t waive, release, r cmmute rights t benefits shall be valid (43 P.S. 861) Neither party shall be charged fees f any kind in any prceeding under UC Act (43 P.S. 862) Child supprt deducted and withheld frm benefits and paid directly t apprpriate State r lcal child supprt enfrcement agency (43 P.S ) Benefits subject t Federal incme tax (43 P.S ) 25
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