Hospitality Management Corp. v. Commonwealth, Department of Labor & Industry, 171 A.3d 936

HMC (a restaurant operator) merged with two predecessor entities (AHA and AHC) effective January 1, 2011, but did not notify the Department of Labor & Industry’s Office of Unemployment Compensation Tax Services until September 2012.
Because the Office lacked predecessor experience, it originally assigned HMC lower UC contribution rates for 2011–2014 and continued assessing AHA/AHC separately, issuing assessments against them.
After HMC disclosed the mergers, the Office withdrew assessments against AHA/AHC, inactivated those accounts, transferred predecessor experience to HMC, and on September 9, 2014 issued revised (higher) rates for 2011–2014.
The Office offered to waive delinquency rates and interest if HMC paid the additional contributions or entered an approved payment plan; HMC instead appealed the revised rates for 2011–2015.
The Department denied HMC’s administrative appeals, concluding the Office’s two-year delay in issuing revised rates (from Sept. 2012 to Sept. 2014) was not unreasonable given HMC’s failure to timely report the transfer and the Office’s investigative work to confirm acquisition dates.
HMC appealed to this Court seeking reinstatement of the original 2011–2012 rates, arguing the Law requires prompt notice and (for Department errors) adjustment within one year.

Issue	HMC's Argument	Department's Argument	Held
Whether the Office’s two-year delay in issuing upward rate revisions violated the statutory requirement to "promptly notify" employers and/or the one-year adjustment rule	The Law (§301(e)(2)) requires prompt notice and §301(j) limits upward adjustments by Department error to one year; therefore rates revised more than one year after notice must revert	§301(j) distinguishes Department errors (one-year deadline) from employer-contributed errors (no fixed statutory deadline); where employer caused the error, revisions may occur after one year but must be done within a reasonable time; HMC’s failure to report contributed to delay	Court held §301(j) allows upward revisions beyond one year where employer contributed to the error; two-year delay was reasonable under the facts and affirmed the Department

The Glidden Company, Inc. v. Department of Labor and Industry, 700 A.2d 555 (Pa. Cmwlth. 1997) (government must act within a reasonable time; lengthy delays can be unreasonable)
Office of Governor v. Donahue, 98 A.3d 1223 (Pa. 2014) (governmental units must act in good faith in discharging duties)
Commonwealth v. Fedorek, 946 A.2d 93 (Pa. 2008) (plain statutory language controls legislative intent analysis)
Tyrone Area School District v. Delbaggio, 638 A.2d 416 (Pa. Cmwlth. 1994) (courts should not impose a limitations period the legislature omitted)