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Tuesday, July 24, 2012

YOU CAN GET PARTIAL UNEMPLOYMENT COMPENSATION IN PENNSYLVANIA IF YOUR EMPLOYER REDUCES YOUR HOURS OR MAKES YOU A PART-TIME EMPLOYEE

Can I Get Partial Unemployment Compensation Benefits In Pennsylvania If My Job Is Reduced To A Part-Time Position?

Yes, provided that 1) your are not being demoted due to willful misconduct; 2) your pay reduction is sufficiently dramatic (see explanation, below).

Am Pennsylvania Employees Eligible for Partial Unemployment Compensation Benefits When Their Pay is Substantially Lowered or Reduced?

Not unless your hours of work are reduced as well.  In other words, if you are making $50,000 per year, and your employer suddenly reduces your pay rate to $35,000 per year, and you do not quit your job, you will be ineligible for partial unemployment.

NOTE:  If you had quit your job when the pay reduction was first made, you very likely would have been eligible for full-unemployment benefits.

How Much of a Pay Cut Do I Need to be Eligible for Partial Unemployment in Pennsylvania?

To figure this out, you must first understand what your weekly benefit rate would be if you had been fired from your job as opposed to having your hours and pay reduced   To figure this out, Click Here

Once you have your weekly benefit rate, you multiply it by 40%.  You then add that number to your weekly benefit rate.  Let's call that number the "Product."

If you are earning the amount of the Product or less in your part-time job, you will be eligible for partial unemployment benefits. 

EXAMPLE:  Assume you were making $40,000 per year but were reduced to a part-time position at $20,000 per year.  Based upon your $40,000 salary, your weekly benefit rate would have been $402.  You then take 40% of $402, which is $160, and add it to the $402 to get a Product of $562. 

Since you are now getting only $500 per week, your current earnings are less than the Product, and you are eligible for partial unemployment compensation benefits.

How much do you get?    We are attempting to confirm for sure, but I believe you get a weekly benefit rate based upon your loss of earnings.  Here, your loss of earnings was $20,000 per year.  So, you would get $202 in partial unemployment compensation benefits. 

NOTE:  This Blog is informational, and constitutes an effort to reduce the Pennsylvania's arcane Unemployment Compensation Statute to a usable, readable form.  The fact is, if your hours are cut from full-time to part-time, then you should immediately file for benefits and the Unemployment Compensation Service Center will do all of the appropriate benefit calculations. 

Can I Get Pennsylvania Unemployment Benefits if I Take a Pert-time Job While I Am on Unemployment?

Yes, Click Here for our comprehensive analysis and calculations on this issue.

More questions about Pennsylvania Unemployment Law?  Click Here for our comprehensive discussion of your most common FAQs.

1 comment:

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