K. DeFrancesco v. UCBR

CourtCommonwealth Court of Pennsylvania
DecidedJanuary 8, 2021
Docket1802 C.D. 2019
StatusUnpublished

This text of K. DeFrancesco v. UCBR (K. DeFrancesco v. UCBR) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
K. DeFrancesco v. UCBR, (Pa. Ct. App. 2021).

Opinion

IN THE COMMONWEALTH COURT OF PENNSYLVANIA

Kathleen DeFrancesco, : Petitioner : : v. : : Unemployment Compensation : Board of Review, : No. 1802 C.D. 2019 Respondent : Submitted: September 18, 2020

BEFORE: HONORABLE MARY HANNAH LEAVITT, President Judge1 HONORABLE PATRICIA A. McCULLOUGH, Judge HONORABLE CHRISTINE FIZZANO CANNON, Judge

OPINION NOT REPORTED

MEMORANDUM OPINION BY JUDGE FIZZANO CANNON FILED: January 8, 2021

Kathleen DeFrancesco (Claimant), pro se, petitions for review of the November 20, 2019 order of the Unemployment Compensation Board of Review (Board) denying her request to withdraw her January 7, 2018 application for unemployment compensation (benefits) and to cancel the corresponding benefit year. Upon review, we affirm the Board’s denial. I. Background Claimant last worked for Merck Sharpe & Dohme (Employer) on January 2, 2018.2 Notice of Determination, 2018 Severance, 2/1/18 at 1, Finding of

1 The decision in this case was reached before January 4, 2021, when President Judge Leavitt served as President Judge.

2 We note that although the referee’s decision states that Claimant separated from Employer on December 8, 2017, this discrepancy does not affect the outcome of our review. See Referee’s Decision & Order, 3/1/19 at 1, Certified Record (C.R.) at 29. Fact (F.F.) 1, Certified Record (C.R.) at 22. Claimant received a regular full-time weekly wage of $2,498.20. Notice of Determination 2018 Severance, 2/1/18 at 1, F.F. 2, C.R. at 22. Claimant received a total of $139,899.84 in severance pay from Employer. Notice of Determination 2018 Severance, 2/1/18 at 1, F.F. 3, C.R. at 22. Unemployment compensation is payable to a claimant who receives at least 37% of her total base wages in one or more quarters other than the highest quarter in the base year. See Section 401(a)(2) of the Unemployment Compensation Law (Law);3 see also Section 4(a) of the Law, 43 P.S. § 753(a) (defining the term “base year” to include “the first four of the last five completed calendar quarters immediately preceding the first day of an individual’s benefit year”). Severance pay is considered wages for purposes of payment of benefits. See Cugini v. Unemployment Comp. Bd. of Rev., 512 A.2d 1169, 1171 (Pa. 1986) (stating, “it is clear that severance pay is includable in the term “wages”). Thus, although the receipt of severance pay from an employer does not render a claimant ineligible for benefits, it may impact the amount of benefits awarded. See Section 404(d) of the Law, 43 P.S. § 804(d) (establishing a formula for the deduction of severance pay from benefits awarded to eligible claimants); see also Rebo v. Unemployment Comp. Bd. of Review, 499 A.2d 732, 735 (Pa. Cmwlth. 1985) (noting that “Section 404(d) [of the Law] relates to deductions from compensation and pertains to employees who have already been determined to be eligible” under the Law) (emphasis in original). The amount of severance pay received by the claimant is deductible from the claimant’s benefits in the weeks immediately following the claimant’s separation from employment, in the amount of the claimant’s regular full-time daily or weekly wage. Section 404(d)(1.1)(iii), 43 P.S. § 804(d)(1.1)(iii).

3 Act of December 5, 1936, Second Ex. Sess., P.L. (1937) 2897, as amended, 43 P.S. § 801(a)(2). 2 Claimant applied for benefits on January 9, 2018, effective January 7, 20184 (i.e., for the week ending January 13, 2018), with a weekly benefit rate of $561. Notice of Determination 2018 Severance, 2/1/18 at 1, F.F. 6, C.R. at 22; Referee’s Decision & Order, 3/1/19 at 2, C.R. at 30. Claimant’s application was effective for a 52-week benefit period ending January 5, 2019. Board’s Decision & Order, 11/20/19 at 1, F.F. 2, C.R. at 96. On February 1, 2018, the Department of Labor and Industry (Department) issued a notice of determination informing Claimant that her receipt of severance pay from Employer would be attributed to and deducted from her benefits.5 See Notice of Determination 2018 Severance, 2/1/18 at 1, C.R. at 22. The Department explained that it calculated a total deductible amount of severance pay of $119,102 by subtracting 40% of Pennsylvania’s average annual wage from $139,899.84 in accordance with Section 404(d) of the Law. Id. (citing 43 P.S. § 804(d)). The Department therefore determined that $114,954 of deductible severance pay would be attributed to Claimant’s disqualification period for the weeks ending January 13, 2018 through November 24, 2018, and that $1,649 of deductible severance pay would be attributed to the week ending December 1, 2018. Id. Claimant did not appeal this determination. Board’s Decision & Order, 11/20/19 at 2, F.F. 7, C.R. at 97.

4 Claimant’s application for benefits filed on January 9, 2018 shall hereinafter be referred to by the effective date, January 7, 2018. 5 We note that the Department misstated that Claimant was “ineligible” for benefits during the disqualification period, see Notice of Determination 2018 Severance, 2/1/18 at 1, C.R. at 22, as Section 404(d)(1)(iii) of the Law provides that “each eligible employe who is unemployed with respect to any week ending subsequent to July 1, 1980 shall be paid, with respect to such week, compensation in an amount equal to his weekly benefit rate less the total of . . . the amount of severance pay that is attributed to the week.” 43 P.S. § 804(d)(1)(iii) (emphasis added); see also Rebo v. Unemployment Comp. Bd. of Rev., 499 A.2d 732, 735 (Pa. Cmwlth. 1985).

3 Claimant reopened her claim on December 12, 2018. Claim Record at 2, C.R. at 4. On December 18, 2018, the Department of Labor and Industry (Department) released benefits to Claimant for benefit week ending December 15, 2018. Board’s Decision & Order, 11/20/19 at 1, F.F. 3, C.R. at 96. On January 7, 2019, the Department released benefits to Claimant for weeks ending December 22, 2018, December 29, 2018 and January 5, 2019 (the remainder of her benefit year). Board’s Decision & Order, 11/20/19 at 1, F.F. 4, C.R. at 96. Claimant filed a second application for benefits, effective January 6, 2019. Board’s Decision & Order, 11/20/19 at 2, F.F. 9, C.R. at 97; Referee’s Decision & Order, 3/1/19 at 2, C.R. at 30. On January 14, 2019, the Department issued a notice of financial determination deeming Claimant financially ineligible for benefits because she did not earn at least 37% of her base year6 qualifying wages outside the quarter in which she received the highest wages.7 Notice of Financial Determination, 1/14/19, Supplemental Reproduced Record (S.R.R.) at 7b.8 Claimant timely appealed the Department’s determination. Referee’s Decision & Order, 3/1/19 at 2, C.R. at 30. On February 27, 2019, the referee held a hearing at

6 The Department identified a base year of October 1, 2017 to September 30, 2018, based on Claimant’s application date of January 6, 2019. See Notice of Financial Determination, 1/14/19, S.R.R. at 7b. 7 Although the Department did not identify this provision in its determination, it evidently relied upon Section 401(a)(2) of the Law, which requires as a prerequisite for financial eligibility that “not less than thirty-seven per centum (37%) of the employe’s total base year wages have been paid in one or more quarters, other than the highest quarter in such employe’s base year.” 43 P.S. § 801(a)(2). 8 We note that we have added “b” following the page numbers in our citations to the supplemental reproduced record, although the Board failed to do so in accordance with Pennsylvania Rule of Appellate Procedure 2173.

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Bluebook (online)
K. DeFrancesco v. UCBR, Counsel Stack Legal Research, https://law.counselstack.com/opinion/k-defrancesco-v-ucbr-pacommwct-2021.