Nevarre v. Unemployment Compensation Board of Review

675 A.2d 361, 19 I.T.R.D. (BNA) 1828, 1996 Pa. Commw. LEXIS 134
CourtCommonwealth Court of Pennsylvania
DecidedApril 10, 1996
StatusPublished
Cited by2 cases

This text of 675 A.2d 361 (Nevarre v. Unemployment Compensation Board of Review) 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
Nevarre v. Unemployment Compensation Board of Review, 675 A.2d 361, 19 I.T.R.D. (BNA) 1828, 1996 Pa. Commw. LEXIS 134 (Pa. Ct. App. 1996).

Opinion

LORD, Senior Judge.

David Nevarre (Nevarre) appeals an order of the Unemployment Compensation Board of Review (Board), which affirmed a referee’s decision denying Nevarre’s requested training allowances for a physician’s assistant program costing approximately $36,000.

This case involves the Trade Act of 1974, 19 U.S.C. §§ 2101-2487, as amended (Trade Act), which established a federal program providing trade readjustment allowances (TRA) and trade adjustment assistance (TAA) training benefits to workers in certain [363]*363industries who are certified by the United States Secretary of Labor (Secretary) as persons adversely affected by unfair or injurious import competition. Bureau of Unemployment Compensation Benefits & Allowances v. Unemployment Compensation Board of Review, 667 A.2d 465, 466 n. 1 (Pa.Cmwlth.1995). Although the program is a federal one, it is administered through state unemployment compensation bureaus. Id.

We are specifically concerned here with TAA training benefits. Section 236 of the Trade Act provides that the Secretary may approve training for a worker, thereby entitling the worker to have training costs paid on his behalf by the Secretary, if the Secretary determines there is no suitable employment available for the worker, the worker would benefit from appropriate training, there is a reasonable expectation of employment following completion of training, training approved by the Secretary is available to the worker from governmental agencies or private sources, and the worker is qualified to undertake and complete the training. 19 U.S.C. § 2296(a). The Secretary prescribes federal regulations pertaining to the approval of TAA training. 19 U.S.C. § 2296(a)(2)(A). Those regulations, which are the focus of this appeal, appear at 20 C.F.R. § 617.22.

The referee made the following findings of fact here:

1. The claimant was employed for 8jé years for Bethlehem Steel Corporation as a systems analyst at a salary of $36,000.00 per year and his last day of work was July 31,1992.
2. The claimant is an adversely affected worker under Petition # TA-W-27118 which certified TRA benefits for workers of Bethlehem Steel Corporation in Johns-town, Pennsylvania.
3. Petition # TA-W-27118 was certified on May 18, 1993, with an impact date of March 26, 1991, and an expiration date of May 18,1995.
4. In May of 1995, the claimant filed a Request for Training and Training Allowances to attend St. Francis College in Lor-etto, Pennsylvania for training as a physician’s assistant for the period from August 21,1994 through August 8,1997.

5. The cost of the program is as follows:

Tuition $29,620.00
Books 1,150.00
Lab Fee 847.00
Equipment 427.30
PA Fee 1,110.00
Comp. Fee 2,580.00
Grad. Fee 125.00
TOTAL $35,859.30
6. On May 24,1995, the TAA Unit issued a determination denying the training under Section 617.22 of the Trade Act of 1974.

(Referee’s decision, May 30,1995, p. 1). The referee concluded that the total cost of the requested TAA training was “prohibitive” and upheld the initial determination denying it. (Id., p. 2). The Board affirmed the referee’s decision without making new findings of fact.

No constitutional question is raised in this appeal, nor does Nevarre contest the facts, and thus our scope of review is to determine whether an error of law has been committed. Nevarre’s statement of the question involved is:

Was the cost of the training and training allowances requested by the Petitioner under § 617.22 of the Trade Act of 1974 unreasonable, merely because it was expensive?

(Petitioner’s brief, p. 3).

We are thus presented in this case with the issue of costs as they pertain to effectuating the TAA program. The Trade Act does not place any specific monetary limit on the cost of individual training programs for which applicants may obtain approval, but does include some limitation on total annual funding for TAA training. See 19 U.S.C. § 2296(a)(2). At the same time, the act creates obligations to re-train certain adversely affected workers for suitable employment, which is defined as “work of a substantially equal or higher skill level than the worker’s past adversely affected employment, and wages for such work at not less than 80 percent of the worker’s average weekly wage.” 19 U.S.C. § 2296(e). Under these circumstances, some competing concerns [364]*364may arise when a eollege educated, highly skilled applicant, who formerly worked at a high paying position, seeks TAA training. On one hand, it might be unfair and fiscally unsound for that applicant to receive much higher allowances than those provided to his or her fellow adversely affected, perhaps less skilled, workers; on the other hand, it might also be unfair not to recognize what is “suitable” for an individual applicant or to allow the positive background of the applicant, who is no less adversely affected, to become a detriment. Resolving this conflict requires state agencies to balance overall, collective costs against individual training requests. We emphasize that the state agencies no doubt have discretion in this area, as long as they follow the criteria set forth in the regulations.

Nevarre argues in this appeal that the regulations require only that costs be “reasonable” and that high costs are not necessarily unreasonable. He essentially contends that, in assessing reasonableness of cost, the sole pertinent factor to be considered is whether the requested cost of training as a physician’s assistant, for example, is reasonable when compared to training costs as a physician’s assistant with alternative providers of that same training. Although it seems dubious that the regulations would not also provide for assessing reasonableness of cost based on total absolute cost, not just comparable, relative cost among providers in a particular training field, Nevarre’s argument is not without some support. For example, a portion of the regulations he cites state:

(а) Conditions for approval. Training shall be approved for an adversely affected worker if the State agency determines that:....
(б) Such training is suitable for the worker and available at a reasonable cost....

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675 A.2d 361, 19 I.T.R.D. (BNA) 1828, 1996 Pa. Commw. LEXIS 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nevarre-v-unemployment-compensation-board-of-review-pacommwct-1996.