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PA Employer.. Am I Liable for Unemployment Charges?

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Straw_Fedora

Junior Member
What is the name of your state (only U.S. law)?

Pennsylvania.

Employee is notified his hours will be cut from full to part time.
Employee quits.
Employee is laid off from a subsequent job 6 months after leaving my company.
I get a notice from the state that the former employee's unemployment is being charged against my account.

Seems a little unfair.
It will lead to a significant increase in my unemployment withholding.
Should I try to appeal?
Is it a lost cause?What is the name of your state (only U.S. law)?
 


commentator

Senior Member
Okay, the circumstances are this if I understand it correctly. You were about to cut the employee's hours from full to part time. This was not his idea, was your idea, based on your company's decision in its own best interest. This may have been a little distressing to the employee. Fair? Not an issue. You the employer made the decision, gave the employee no choice except to accept this new part time job situation or quit and find another one. The employee voluntarily quits the job, probably says he needs a full-time job. He finds a full time job shortly after leaving your employment, has worked there until the present, when he is laid off due to no fault of his own from the new employer. This may be a temporary lay off for a few weeks, or it may be a permanent one, you probably were not given this information. Probably you were notified that you will be liable for a certain percentage of the claim, a maximum possible charge of......because there's no way to determine yet whether the person is going to draw out all the claim or just a few weeks of it. This may or may not cause your tax rate to be raised.

You receive notice from the charge unit of your state unemployment system that a sizeable portion of the former employee's claim will be charged against your account. There is probably some sort of information on this notice about how to submit an appeal, some way that you can inform the charging unit that the employee voluntarily quit your job, and therefore you request a non-charge to your employer tax account.

The problem is that the person has already explained the circumstances under which he left your job to the claims office when he filed the unemployment claim, and it was likely determined that he actually left your job for a "good, non-misconduct reason." That was that the hours were cut to part-time, which is actually the decision of the employer, not considered the fault of the employee. I'd say you're probably on the hook for these unemployment benefits, but it wouldn't hurt to ask the charge unit and see if you can appeal.

If the employee's hours were reduced significantly, he could probably have gotten approved for benefits at the time he left your employment. But the employee went on quickly and went right to work somewhere. Unemployment benefits isn't very much money if the person can find anything else, so perhaps he won't be drawing long. Hopefully the next employer won't keep the person laid off too long before a recall, or the person will move on to something else full time.
 
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swalsh411

Senior Member
It's fair in the sense that the new employer should not be charged the full amount of the claim if they only employed this person for a short period. Employers would be less likely to hire workers if they knew they would be on the hook for the entire unemployment claim if they had to let them go shortly after hire.

You were the employer for a good part of the lookback period so at least part of the claim will be charged to you.
 

commentator

Senior Member
When an employer can control an employee's potential livelihood totally by giving them more or less hours, without repercussions, it quickly can amount to economic slavery.The technique has been used to stamp out reform and break unions and force workers to accept any amount of mistreatment and danger on the job for thousands of years. Since the 1930's, employers have been required to share a tiny fraction of their profits in a tax system to support their workers who are without work through no fault of their own.

No employer who is not prepared to pay this cost should be in business. Because it is administered by the states, under the control of the federal government, the program strives to be relatively impartial. It is not a welfare, based on the poverty level of the claimant, but a tax on employers that goes up based upon two factors. If the employer has a lot of ups and downs in their work which result in the workers being on and off work sporadically, and if they have a lot of employees, so that their being off work will significantly affect the economy.

In good times, where other jobs are available, workers usually elect to find other jobs quickly, rather than taking much unemployment insurance, which is usually much less than one can make while working. But when there's nothing else to go to out there, or the cut back is temporary, it is a good and necessary part of our economic support system.
 
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