Big Mountain Imaging v. Unemployment Compensation Board of Review, 2012 Pa. Commw. LEXIS 130

Big Mountain Imaging (Employer) petitions for review of a Board order reversing a referee and finding Todd Eisenhardt (Claimant) eligible for ongoing benefits under Section 402(a).
Claimant previously worked for Employer for about five years and was terminated after an incident where he struck a machine and later ignored a directive to report to work following a personal absence.
Before the initial hearing, Employer offered to rehire Claimant to his pre-termination role at the same pay, conditioned on passing a drug test and withdrawing his unemployment claim to reimburse the damage caused.
The referee found Claimant had good cause for the absence; Employer later offered the position, but Claimant declined the offer.
The Board concluded Employer’s offer was not suitable work because it was impermissibly contingent on Claimant waiving his unemployment benefits; it reversed the referee’s decision, and Employer appealed.
On review, the court held substantial evidence supported the Board’s finding of an impermissible contingency and affirmed the Board’s denial of disqualification for rejecting the offer.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the offer was suitable work given its contingency	Employer argues the offer was negotiable and thus not automatically unsuitable.	Claimant argues the offer was contingent on waiving benefits and therefore not suitable.	Offer not suitable; contingency invalidates suitability.
Whether Claimant had good cause to refuse the offer	Claimant argues there was no good cause to reject since the offer was suitable.	Employer contends there was no good cause to the rejection because the offer required forfeiting unemployment benefits.	Claimant had good cause to refuse due to forfeiting unemployment benefits, which cannot be contractually waived.

Reed v. Pitts. Bd. of Pub. Educ., 862 A.2d 131 (Pa. Cmwlth. 2004) (preliminary negotiations lack an intent to conclude a bargain)
McKeesport Hosp. v. Unemployment Comp. Bd. of Review, 619 A.2d 813 (Pa. Cmwlth. 1992) ( Restatement guidance on offers and negotiations)
First Home Sav. Bank, FSB v. Nernberg, 648 A.2d 9 (Pa. Super. 1994) (rejection of counter-offer as a rejection of offered work)
Lee v. Unemployment Comp. Bd. of Review, 33 A.3d 717 (Pa. Cmwlth. 2011) (employer cannot settle unemployment rights; cannot waive benefits)
Pitt. Chem. & Sanitary Supply Co., Inc. v. Unemployment Comp. Bd. of Review, 9 A.3d 274 (Pa. Cmwlth. 2010) (employer–employee settlements in unemployment context)
Gianfelice Unemployment Comp. Case, 153 A.2d 906 (Pa. 1959) (statutory protection against contract waiver of unemployment rights)
Williams v. Unemployment Comp. Bd. of Review, 164 A.2d 42 (Pa. Super. 1960) (public policy against waiving unemployment benefits)
Rising v. Unemployment Comp. Bd. of Review, 621 A.2d 1152 (Pa. Cmwlth. 1993) (defining suitability and good cause framework)
Grieb v. Unemployment Comp. Bd. of Review, 827 A.2d 422 (Pa. 2003) (appellate review of Board factual findings)
Oliver v. Unemployment Comp. Bd. of Review, 5 A.3d 432 (Pa. Cmwlth. 2010) (standard of review on unemployment decisions)