The NLS Press
A publication of NLSA, serving Allegheny, Beaver, Butler, and Lawrence Counties in Pennsylvania
Volume 2, Issue 1 Summer 2003
Uncovering the Benefits of Unemployment Compensation
by Sarah Morgan, NLSA Intern, Pittsburgh Office
Unemployment has increased throughout the country, including Pennsylvania1. According to a recent New York Times article, current jobless rates are the highest in 9 years2. In June, 2003, 9.4 million people were unemployed. Two million people had been unemployed for 27 weeks or more3.
As jobs become more difficult to find, unemployment compensation becomes increasingly important. In 2000-2001, Neighborhood Legal Services Association opened approximately 379 new employment cases. This number jumped to 443 in 2001-2002 and was roughly similar during 2002-20034. Established by the federal Social Security Act in 1935, unemployment compensation is based on both federal and state statues5. Funding comes from a combination of federal and state taxes which employers must pay to the Unemployment Trust Fund in their state.
Unemployment compensation provides support for workers who have lost their jobs through no fault of their own6 (such as through company layoffs). After losing their jobs, workers may receive benefits for up to 26 weeks, which can be extended during periods of economic downturn.
The phrase that should be highlighted, however, is "through no fault of their own." Unemployment benefits can be denied for several reasons, including a finding of a voluntary quit without good cause, willful misconduct, refusal of suitable work, being unable or unavailable to work, being incarcerated following a conviction, or participating in a strike7.
However, these issues are often not as simple as they appear. For example, a client may not be aware that his or her actions were serious enough in the eyes of an employer to warrant termination.
Another possibility is that an employer may not have followed its own policies.
Pennsylvania case law holds that an employee should receive benefits if an employer did not follow its own progressive disciplinary policies prior to termination8.
Such decisions are first made by the Department of Labor and Industry in the local Job Service Center. If an employee is denied benefits, he or she may appeal that decision. NLSA meets with clients to help prepare their cases and represents them at these referee hearings. NLSA may also represent them through further appeals.
There have been several recent developments at the state level which affect employment law and unemployment compensation in general. For instance, the December 2002 amendments to Pennsylvania's Unemployment Compensation Law address issues such as drug testing, information gathering, and fraud.
UC benefits can now be denied to claimants who have failed to submit to and/or pass a drug test conducted under an established substance abuse policy, provided the drug test is lawful9. Also, UC referees are now required to conduct hearings "de novo." In addition, fines on both employers and claimants have been increased in matters concerning fraud10.
The Pennsylvania Department of Labor and Industry provides information on changes in employment law. This information, as well as other helpful resources concerning employment law, can be found on NLSA's web site, www.nlsa.us.
NLSA staff members are also available to answer questions for pro bono attorneys.
Because of the recent downturn in the economy, NLSA has an increasing number of UC cases and would appreciate help from anyone willing to volunteer. Please contact Barbara Kern.
1. "State Unemployment up in April," Pittsburgh Business Times. http//pittsburgh.bizjournals.com/pittsburgh/stories/2003/05/19/daily2.html.
2. Gilpin, Kenneth N. "Jobless Rate Rises to 6/4 Percent; Highest in More Than 9 Years," New York Times. 3 July 2003, http://www.nytimes.com/2003/07/03/business/03-CND-ECON.html.
3. Bureau of Labor Statistics: Employment Situation Summary. http://www.bls.gov/news.release/empsit.nr0.htm.
5. "Unemployment compensation law: an overview," http://www.law.cornell.edu/topics/unemployment_compensation.html.
6 Id.
7. "Unemployment Compensation: the Basics," NLSA website, http://www.nlsa.us/public/employment/e9_uc_basics.htm.
8. See Looney v. U.C.B.R., 529 A.2d 612 (Pa.Cmwlth.1986).
9. UC Issues Update. http://www.dli.state.pa.us/landi/lib/uc/pdf/19ucspring03.pdf.
10. Id.
In this issue:
Main Office: 928 Penn Avenue
Pittsburgh, PA 15222-3799
Telephone: (412) 255-6700
Toll-Free: 1-866-761-6572
Fax: (412) 355-0168
