Lee v. Unemployment Compensation Board of Review
33 A.3d 717
| Pa. Commw. Ct. | 2011Background
- Claimant Nicole Lee, employed since 1995 by Williamsport Area School District as a classroom assistant, injured in 2005 and pursued workers' compensation.
- In January 2009 Claimant began light-duty work; WC settlement in 2009 paid $12,500 and included a resignation/release resigning her as assistant secretary effective December 10, 2009.
- Resignation/release waived numerous rights, including unemployment benefits; local job center initially found 402(b) inapplicable and suggested eligibility under 401(d)(1) if available for work.
- Referee upheld the local center; Board reversed, finding that Claimant voluntarily terminated to settle the WC claim and had no necessitous and compelling cause.
- Claimant testified she signed to satisfy her attorney and the settlement; Employer’s HR director testified continuing work was available and the insurer required resignation.
- Pennsylvania courts broadly hold that a resignation to settle a WC claim constitutes voluntary termination without necessitous and compelling cause; the waiver clause under section 701 is invalid, but does not defeat the 402(b) determination here.
- The Court affirmed the Board’s decision upholding ineligibility under 402(b).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Lee's resignation to settle WC claim was voluntary termination | Lee contends resignation was involuntary due to pressure. | Lee quit voluntarily to settle the WC dispute and to remove a threat of ongoing injury. | Voluntary termination without necessitous and compelling cause |
| Whether the waiver of unemployment rights in the resignation/release invalidates it under section 701 | Waiver provision renders the agreement invalid and thus the quit involuntary. | Section 701 prohibits waivers, but rights exist only if established; waiver does not create rights. | Waiver invalid under section 701, but not determinative of 402(b) voluntariness in this case |
| Whether Board's 402(b) determination was supported by substantial evidence and proper law | Board erred in crediting the resignation as involuntary and/or misapplying law. | Board properly concluded claimant elected to resign to settle the WC claim; credibility findings supported. | Board's 402(b) ruling affirmed; claimant quit voluntarily without necessitous and compelling cause |
Key Cases Cited
- Black v. Unemployment Compensation Board of Review, 2531 C.D.1998 (Pa.Cmwlth.1999) (voluntary quit to settle WC without necessitous and compelling cause)
- Hill v. Unemployment Compensation Board of Review, 1750 C.D.2010 (Pa.Cmwlth.2011) (health/necessitous reasons insufficient to justify quit to settle WC claim)
- Pitt Chemical and Sanitary Supply Company, Inc. v. Unemployment Compensation Board of Review, 9 A.3d 274 (Pa.Cmwlth.2010) (section 701 waiver invalid; rights must first exist under the Law)
- Department of Labor and Industry, Bureau of Employment Security v. Unemployment Compensation Board of Review, 418 Pa. 471 (1965) (section 701 relevance after establishing rights to benefits)
- Port Authority of Allegheny County v. Unemployment Compensation Board of Review, 955 A.2d 1070 (Pa.Cmwlth.2008) (review of voluntary/necessitous cause considerations)
- Davila v. Unemployment Compensation Board of Review, 926 A.2d 1287 (Pa.Cmwlth.2007) (totality of circumstances in voluntary quit analysis)