McKean v. Unemployment Compensation Board of Review
94 A.3d 1110
| Pa. Commw. Ct. | 2014Background
- Claimant Shawna McKean collected Emergency Unemployment Compensation (EUC) after prior employment ended; benefits ran through May 18, 2013.
- In March–April 2013 she performed five private counseling sessions for one client, earning $90 per session; she later reported that income in June 2013.
- She purchased used office chairs and a printer and later (June 2, 2013) printed business cards and brochures; dates of purchases were contested.
- The UC Service Center determined she became self‑employed on March 6, 2013, issued a $5,006 fault overpayment, and imposed a 13‑week fraud penalty.
- A Referee and the Board affirmed those determinations; McKean appealed to the Commonwealth Court.
- The Court reviewed whether the Board’s factual findings supported the legal conclusion of self‑employment as of March 6, 2013, and whether nondisclosure of income was fault.
Issues
| Issue | Claimant's Argument | Board's Argument | Held |
|---|---|---|---|
| Whether five counseling sessions and related acts constituted self‑employment beginning March 6, 2013 | The sessions were minimal and de minimis; did not establish an independent business | Acts (licensure, equipment, soliciting referrals, business cards) show intent to form a permanent practice | Reversed: facts do not support self‑employment as of March 6; evidence shows self‑employment began June 1, 2013, at the earliest |
| Whether failure to timely report the counseling income was excused by complexity of law (i.e., non‑fault overpayment) | Claimant argued complexity excuses late reporting; overpayment should be non‑fault | Claimant admitted she knew she had to report earnings but delayed to avoid losing benefits | Affirmed: nondisclosure was deliberate; fault overpayment and penalty are proper (but amount must be recalculated for the correct self‑employment period) |
Key Cases Cited
- Buchanan v. Unemployment Compensation Board of Review, 581 A.2d 1005 (Pa. Cmwlth. 1990) (occasional sideline sales insufficient to show an independently established business)
- Teets v. Unemployment Compensation Board of Review, 615 A.2d 987 (Pa. Cmwlth. 1992) (insufficient evidence of time/effort and permanence for self‑employment)
- Silver v. Unemployment Compensation Board of Review, 34 A.3d 893 (Pa. Cmwlth. 2011) (de minimis, occasional work does not establish self‑employment; Bureau bears burden to prove permanence)
- Frimet v. Unemployment Compensation Board of Review, 78 A.3d 21 (Pa. Cmwlth. 2013) (whether a claimant is self‑employed is a question of law subject to plenary review)
- Campbell v. Unemployment Compensation Board of Review, 694 A.2d 1167 (Pa. Cmwlth. 1997) (unchallenged factual findings are binding on appeal, but legal conclusions remain reviewable)