K.L. Cristea v. UCBR
K.L. Cristea v. UCBR - 1560 C.D. 2016
| Pa. Commw. Ct. | Jun 14, 2017Background
- Claimant Karrie Cristea worked at Holiday Inn until May 12, 2016 and filed for unemployment benefits on that date.
- After separation, she planned a one-time bridal show for January 2017, intending to contact vendors, rent space, advertise, and retain any profits.
- Believing she needed a tax ID, she applied to the IRS for an EIN on June 10, 2016 under the name “Eventions,” then withdrew the EIN request on July 12, 2016 after Department advice.
- The Department issued a determination that she was ineligible under 43 P.S. § 802(h) (self-employment) for the week ending June 11, 2016.
- A referee and then the Unemployment Compensation Board of Review affirmed the denial; Claimant appealed to the Commonwealth Court.
- The Commonwealth Court reviewed whether Claimant took ‘‘positive acts’’ sufficient to constitute self-employment and thus bar benefits.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Cristea was engaged in self-employment under §402(h) | Cristea: applying for an EIN and planning a one-time bridal show were insufficient; she did not launch an ongoing business | Board: filing for an EIN named “Eventions” and planning the event were positive steps tantamount to forming a business | Court: Reversed — her actions (temporary one-time plans and a withdrawn EIN) were insufficient to establish self-employment |
Key Cases Cited
- Buchanan v. Unemployment Compensation Bd. of Review, 581 A.2d 1005 (Pa. Cmwlth. 1990) (explains that employer must prove both elements of the statutory employment test and surveys factors constituting self-employment)
- Roche v. Unemployment Compensation Bd. of Review, 503 A.2d 1103 (Pa. Cmwlth. 1986) (acts like opening a business checking account and leasing space are ‘‘positive acts’’ establishing a business)
- Kirk v. Unemployment Compensation Bd. of Review, 425 A.2d 1188 (Pa. Cmwlth. 1981) (approving finding of self-employment where claimant took concrete steps—loan approval, equipment purchase—to start a business)
- Centorame v. Unemployment Compensation Bd. of Review, 474 A.2d 1220 (Pa. Cmwlth. 1984) (advertising or printing business cards, without performing work, does not by itself launch a new enterprise)
- Parmalee, Miller, Welsh & Kratz v. Unemployment Compensation Bd. of Review, 405 A.2d 1052 (Pa. Cmwlth. 1979) (contemplation of a practice without performing services insufficient to establish self-employment)
- Leary v. Unemployment Compensation Bd. of Review, 322 A.2d 749 (Pa. Cmwlth. 1974) (incorporation and other decisive acts can mark the start of self-employment)