June 17, 2011 the Governor of Pennsylvania Tom Corbett signed the law on the latest developments on the unemployment compensation law in Pennsylvania. The following changes will take effect from 1 January 2012. Although it is supposed to be developed as to the challenges of the Commonwealth budget measures to reduce costs, modifications may have unexpected consequences for the lawyers and their clients when discussing the packages output means. And the lawyers working in this area of the law, should count on an interesting and probably confuse the issue in the future.
Generally speaking, the legislative Pennsylvania revised section 804 of the SS, to require the plaintiffs to pay the payments when applying for unemployment assistance. Until it seems that the changes in Section 804 (g) require potential plaintiff to delay filing for unemployment benefits until he recover all of their payments for the exit, but they seem to have a negative adab & # 39; are at potential plaintiffs & # 39 ; the right to benefits. Despite the fact that the new provisions can reduce the right to potential claimants, but probably they can significantly increase the litigation, as they seem to cause more problems than the problems they supposedly solve. The following examples of questions that may arise.
The first example: Very often, the problems associated with unemployment benefits, are solved in the context of a broader and more comprehensive issue of employment between the employer and former employees. If the above question of employment is solved in some way unusual that part of the funds for the settlement is issued directly to the employee, and the rest are given directly to the employee advocate. From the new law on unemployment compensation is not clear whether the funds granted directly worker lawyer, part of the payment operation.
Second example: Occasionally employer refuses to issue two (2) separate checks an employee and his attorney. In this case, a lawyer is typical to get all the money to deduct the unpaid fees and expenses and to issue a check for the difference employee. Despite getting the amount reduced due to lawyers and expenses, the employer will give employees usually 1099 or W-2 for the full amount. As mentioned above, it is not clear whether, in the context of unemployment compensation the full amount, or the amount that was actually received by the worker, seen as part of employee benefits.
A third example: Sometimes, the employer gives the employee the money directly to a lawyer in the same amount as that of the payer, who has paid employees. The employer gives lawyers 1099 for disbursement. The lawyer, in turn, gives the employee a refund paid to the holders. Will this return is considered part of the employee payment of the package?
Fourth example: some employees & # 39; Calculations with employers include both payment of employee benefits as an output, and a sum which is substantially punitive damages. Dividends paid for access, resulting in a W-2 employer issued to the employee, while the payout for "punitive damages" 1099 leads to the employer, and are not normally subject to standard tax assessed on earnings. Alternatively, some employers provide one-time assistance, without holding taxes, and give one thousand and ninety-nine for a lump sum. It is unclear how Pennsylvania Department of Labor will deal with these situations. Whether it considers that the entire amount of content, which includes a pre-tax payment in terms of employee severance packages? If not, and he just takes into account the net amount paid, is likely to harm the employee who received a lump sum, as it would seem, an employee received the package before taxes, was a large sum, and the Ministry of Labor can compensate for a large sum.
As seen above, while the new additions to the Pennsylvania unemployment compensation can reduce the rights of potential applicants for benefits, they seem to cause more problems than the problems they solve. It will be interesting to see how questions and others like them solve the Ministry of Labor and the courts have raised above.
For readers & # 39; convenience to the Law of the Pennsylvania unemployment compensation as follows: Section 804 Pennsylvania 43 PS PS Act on unemployment compensation has been changed with the amendment to subsection (4) (1), which reads: "Co-payments are paid for each eligible employee who does not work against until this week, the compensation in an amount equal to his weekly payment rate minus the total amount of (i) the remuneration, if any, paid or payable to him in respect of weeks for performed services beyond his loan with partial payment, and (ii) the payment of vacation, if any, in excess of its partial credit, except when they are paid to the employee, which is permanently or indefinitely separated from employment and (iii) the amount of severance pay, which is attributed to the week. "
43 of the draft law under Article 804 (d) (1.1) for the law was added to the law, and they say: "(i)" exit payment "means one or more of the payments that the employer provides to the employee on account of separation from service of an employer, regardless of whether the entrepreneur legally obliged to contract, statute or otherwise effect such payments. This term does not include payments for retirement, retirement or calculated rental payments and additional unemployment benefits. (ii) the amount of payment severance, assigned in accordance with subparagraph (iii ) Shall be the sum of not less than zero (0) defined by subtracting the forty percent (40%) of the average annual salary, calculated in accordance with subsection (d) June 30, immediately before the calendar year in which the year begins with the plaintiff benefits total . payments to the employer that pays or paid by, (iii) payment of termination benefits is explained as follows: the days of the week or the week immediately following the employee seperatsyi (B) The number of days or weeks, which are assigned to the output is determined by dividing the total amount of severance pay. the usual daily or weekly wage the applicant a fee. (C) The amount of the severance pay attributed to each day or week, is the usual daily or weekly salary of the applicant. (D) If the assignment of severance pay is based on the number of days the payment should apply to normal working days in a calendar week. "
Originally published November 18, 2011 in The Legal Intelligencer.