Section 402(h) is the section of the Pennsylvania Unemployment Compensation Law which states that a claimant is ineligible for unemployment benefits if they are self-employed.

What many people do not realize is that once they become self-employed, they are ineligible to collect unemployment benefits. Most people who have lost their employment and have had trouble regaining employment often try to start their own business. While this feels like the right thing to do, once you decide to take the leap to start your own business, you can no longer collect unemployment benefits. If you claim benefits while you are self-employed, you may be required to pay back any benefits you received while you were self-employed.

Another area where this body of law arises is when the claimant accepts a position with an employer and is classified as an independent contractor and earns wages on a 1099 basis rather than as a W-2 employee. In some cases, the Department of Labor will investigate a claimant’s wage claims and if the claimant receives wages on a 1099 basis, it raises a red flag and the Unemployment Compensation Service Center may issue a determination stating that a claimant is ineligible to receive benefits since they are self-employed. Please be advised that you have the right to appeal this determination by filing an appeal within 15 days.

Just because a worker is labeled an “independent contractor” by an employer doesn’t necessarily make it so, even if there is a written contract stating that the employee is considered an independent contractor. The Department of Labor will look to see whether the claimant was truly an independent contractor or if they should have been classified an employee. The Department of Labor essentially adopts the IRS 20-factor test on employee classification. All the factors used essentially come down to who has the right to control how the job is performed.

If the employer exercises a substantial degree of control over how the job is performed, the worker should be classified as an employee, which may lead to a reversal of the unemployment denial. For example, if the employer sets the workers schedule, tells the worker how to perform the job, and the employer provides tools or materials, the worker should be classified as an employee even if the employer argues that the employee is an independent contractor.

If your unemployment benefits have been denied or contested under Section 402(h) of the law due to self-employment, please call me for a consultation at (484) 362-9286. You must appeal the determination within fifteen (15) days and I would be happy to discuss representing you at your hearing. I am an attorney specializing in unemployment compensation law and primarily represent clients located near Bethlehem, Pennsylvania.

If you’ve been terminated in Pennsylvania for receiving poor customer surveys or poor customer reviews, your unemployment benefits may be denied. If you received a denial from the PA UC Service Center, you should absolutely seek an attorney to appeal this determination. Please be advised that there are only 15 days to file an appeal from the date the denial notice was mailed.

Under Pennsylvania’s Unemployment Compensation Law, unemployment benefits can be denied generally under Section 402(e), which provides that “willful misconduct” is a basis for denying someone’s unemployment benefits. A lot of people are confused about the term willful misconduct. Willful misconduct is denied as follows: “an act of wanton or willful disregard of the employer’s interests, a deliberate violation of the employer’s rules, or a disregard of the standards of behavior which the employer has a right to expect of an employee.”

PA’s Unemployment Service Centers are routinely denying unemployment claims based on this section of the law. If a worker receives a poor customer review and they are terminated, is that willful misconduct? That is a matter of interpretation based on a facts and circumstances analysis by the Unemployment Compensation Board of Review. Generally speaking, it may be considered a disregard of the standards of behavior which the employer has the right to expect of an employee.

On the other hand, arguments could be made that a poor customer review should not be considered willful misconduct. Maybe the customer lashed out at an employee due to his dissatisfaction with the actual product rather than the employee’s service. Perhaps the employee always performed to the best of their ability. Was this a single isolated incident or a pattern or poor reviews? Perhaps the employee received only a very small percentage of poor reviews. Maybe the customer review was not fair and honest. All of these factors must be taken into consideration and can be the difference between receiving unemployment benefits or being denied unemployment benefits.

If you find yourself in the same type of situation, please call me for a free case evaluation at (484) 362-9286.

If you’ve received a letter from a PA UC Service Center informing about an overpayment, you may be wondering what you have to do. Do you have to pay this amount back? What if you don’t pay it back or can’t pay it back? Can they take you to court to collect it? Can they place a lien on your house? What if it was a mistake?

The key to what your rights, duties, and obligations are depend on whether the UC overpayment is considered fault or non-fault. What will usually occur is that you receive a letter from he Service Center stating that you were a recipient of an overpayment and the Service Center will ask that you repay this amount.

This letter will likely state whether or not the payment is considered fault or non-fault. Non-fault overpayments typically occur when you receive benefits initially and the employer wins following an appeal or when an employee mistakenly receives benefits and has not misrepresented or concealed material facts.

When an non-fault overpayment occurs and you don’t return the benefits you received, the overpayment will be deducted your future PA UC benefits. Additionally, the deduction cannot exceed 33% of your weekly benefits.

On the other hand, if the overpayment is considered a fault overpayment, you will have to repay the benefits received. If you do not pay the amount of the overpayment in full within 15 days, interest on the overpayment will begin to accrue. A lien can also be filed against you for the overpayment and the overpayment can also be deducted from future benefits. Additionally, stiff criminal penalties including fines of $1,000 and jail time of up to 30 days for each check obtained can be pursued if the receipt of UC benefits is considered fraudulent.

If you receive a Notice of Determination finding an overpayment, you can appeal this determination. However, you have only 15 days from the date the determination is mailed to file an appeal so you must act promptly to preserve your rights to an appeal. If you have a question regarding a UC overpayment issue in Pennsylvania or need to appeal an overpayment decision, please call us at (484) 362-9286 for help.

Zachary Zawarski is an unemployment compensation attorney located in Bethlehem, Pennsylvania.