Quarterly Redetermination of Compensation Benefits

42 Pa. D. & C. 527
Pennsylvania Court of Common Pleas·Decided November 24, 1941·Published

Opinion

Rutherford, Deputy Attorney General,

— This department is in receipt of your recent communication requesting an opinion as to whether, under the provisions of the Unemployment Compensation Law of December 5, 1936, P. L. (1937) 2897, as amended by the Acts of May 18, 1937, P. L. 658, and June 20,1939, P. L. 458, 43 PS §§751 et seq., the De[528] partment of Labor and Industry is required to make quarterly redeterminations of the amount of a benefit award allowed to a compensation claimant.

The provision of the Unemployment Compensation Law which gives rise to the question of quarterly re-determinations is contained in section 404 thereof and reads as follows:

“Section 404. Amount of Compensation. — The maximum total amount of compensation payable to any eligible employe during any benefit year shall not exceed one-eighth of his total wages from employers during the first eight out of the last nine completed calendar quarters immediately preceding each week with respect to which compensation is payable . . or thirteen times his weekly compensation amount, whichever is the lesser.”

You will observe that, under the language of the above-quoted provision, the maximum total amount of compensation payable to any eligible employe during any benefit year is limited to one eighth of the employe’s total wages in covered employment during the first eight out of the last nine completed calendar quarters immediately preceding each week of the benefit year. You will further observe that the provision contains no qualification as to the calendar quarter of the benefit year in which “each week with respect to which compensation is payable” may occur. The language of the provision would, therefore, indicate that the amount of compensation payable to an eligible employe during a benefit year is subject to a limitation, which limitation may vary with respect to different periods of the benefit year, depending upon the calendar quarter of the benefit year in which a particular weekly claim may be filed. From reading the foregoing provision alone, it would appear that the Department of Labor and Industry may be required by the law to determine the amount of a benefit award not only at the time the department makes the initial determination of com[529] pensation, but that it must also redetermine the amount of benefits and modify the award in each of the three calendar quarters of the benefit year, subsequent to the first calendar quarter, in which the claimant files continued weekly claims. Thus, the department would have to make an initial determination of the amount of compensation in the first calendar quarter in which a weekly benefit payment is made to the claimant, and when that calendar quarter expired the bureau would have to make a second determination of the amount of benefits allowable, and so on, with respect to the third calendar quarter and the fourth calendar quarter of the benefit year.

If, as indicated above, we were limited in our consideration of the question to the foregoing provisions in section 404 of the act, there might appear to be no alternative but to rule that quarterly redeterminations of compensation were required of the department. There are, however, other provisions of the law relating to the determination of compensation by the department which must be considered in answering the question which you have submitted. These provisions are contained in section 501 of the act, and read as follows:

“Section 501. Initial Determination of Compensation; Appeals. — The department shall promptly examine any claim filed, and on the basis of the facts found by it, shall determine whether or not the claim for compensation is valid, and if valid, the week with respect to which compensation shall commence, the weekly compensation payable, and the maximum duration thereof. The claimant and other affected parties shall be promptly notified of the decision and the reasons therefor. Unless the claimant or other affected parties file an appeal from such decision with the board within ten calendar days after such notification was mailed to his last known post office address, and applies for a hearing, such decision of the department [530] shall be final and compensation shall be paid or denied in accordance therewith. In the event that an appeal is filed with the board, the payment of compensation shall be withheld pending determination of the claim, but when a referee or the board affirms a decision of the department allowing compensation such compensation shall be paid notwithstanding any further appeal which may thereafter be taken.” (Italics supplied.)

Additionally section 403 provides that the weekly compensation rate must remain the same throughout the benefit year, as follows:

“Section 403. Rate and Payment of Weekly Compensation. — Compensation shall be payable at the rate of fifty per centum of the employe’s full-time weekly wage, but the amount shall not be more than fifteen dollars, nor less than seven dollars and fifty cents a week. An employe’s weekly compensation amount, as determined for the first week of his benefit year, shall constitute his weekly compensation amount throughout such benefit year. Compensation shall be computed to the nearest multiple of five cents. Compensation shall be paid through employment offices at such times and in such manner as the department may prescribe.”

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Quarterly Redetermination of Compensation Benefits, 42 Pa. D. & C. 527 (Pa. Super. Ct. 1941).

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