54 Pa. Commw. 376 | Pa. Commw. Ct. | 1980
Opinion by
Directed to this Court’s original jurisdiction under Section 761(a) (2) of the Judicial Code,
The defendant filed an answer and new matter, which brought a reply from plaintiff. Thereafter both parties filed a motion for summary judgment; and those motions are the matter instantly before us.
Section 704 of the Unemployment Compensation Law was added by the Act of July 6, 1977, and became effective on January 1, 1978. Section 704 provides as follows:
Any employer who makes a deduction from a back wage award to a claimant because of the claimant’s receipt of unemployment compensation benefits, for which he has become ineligible by reason of such award, shall be liable to pay into the Unemployment Compensation Fund an amount equal to the amount of such deduction. When the employer has made such payment into the Unemployment Compensation Fund, his reserve account shall be appropriately credited. (Emphasis added.)
Because some of the facts underlying the plaintiff’s claim preceded the effective date of Section 704, January 1, 1978, it is the defendant’s contention that liability can be imposed only by giving the Section an unlawful retroactive application. We turn now to the facts that have generated that issue.
The lay-offs caused labor grievances to be filed; and on May 23, 1977, an arbitrator ruled that the layoffs were in violation of the labor agreement between the defendant and the employees’ union. As a result, the arbitrator on that date awarded the laid-off workers back pay for the period they were out of work.
In December, 1977, before the effective date of Section 704, the defendant paid three of the workers their back wages pursuant to the arbitrator’s award. However, the defendant deducted the sum of $1,896.00, which represented the sum those three had received in unemployment benefits. On February 7, 1978, more than one month after the effective date of Section 704, the defendant paid the other nineteen employees who had been laid off their back wages, but deducted from them the total sum of $12,219.00, which represented the sum they had received in unemployment benefits.
The defendant deducted and kept a total of $14,-115.00; and it is those moneys which the plaintiff, Bureau of Employment Security, seeks to recover in this suit on the strength of a statutory provision that became effective on January 1, 1978.
Section 1926 of the Statutory Construction Act of 1972
However, the above principle of statutory construction becomes pertinent only after it has been determined that the proposed operation of the statute would indeed be retroactive. Gehris, supra. Therefore, the issue we must determine is whether the imposition of liability under Section 704 in this case constitutes giving that provision retroactive operation.
A retroactive law has been defined as one which relates back to and gives a previous transaction a legal effect different from that which it had under the law in effect when it transpired. Page v. Shanksville-Stonycreek, 29 Som. L.J. 126, 129 (1973); Great Atlantic & Pacific Tea Co. v. Chesnut, 55 Daup. 426, 428 (1944). A law is given retroactive effect when it is used to impose new legal burdens on a past transaction or occurrence.
The critical language in Section 704 of the Unemployment Compensation Law is provided by the words, “any employer who makes a deduction . . . shall be liable to pay into the Unemployment Compensation Fund. ...” The transaction that triggers the legal liability is the employer’s act of making the deduction from the back wage award. The fact of a back wage award, standing by itself, would create no liability under Section 704; nor would the fact that the employee has become ineligible for his past unemployment benefits because of such an award. The employer has no liability under Section 704 unless or until he makes a deduction from the award.
When the instant defendant on February 7, 1978, deducted $12,219.00 from the back wage awards of
As to the $1,896.00 in deductions made by the defendant on December 22, 1977, we are constrained to reach a different conclusion, by virtue of the principles we have stated. To the extent of that sum, the liability-creating’ act, the deduction, occurred prior to the effective date of Section 704, as did the facts and conditions upon which the Section’s application depends.
The defendant also argues that the action in assumpsit by the Bureau of Employment Security represents an unlawful attempt by that agency to ‘ ‘ redetermine” the initial eligibility of the twenty-two employees for unemployment compensation, after the benefits had been paid. Such is neither the purpose nor effect of an action under Section 704. The Bureau’s lawsuit is not predicated on an idea that somehow the employees were ineligible under Section 402 of the Unemployment Compensation Law,
For the reasons set forth in this opinion, the plaintiff’s motion for summary judgment is granted as to the deductions made after January 1, 1978; and the defendant’s motion for summary judgment is granted as to the deductions made prior to January 1, 1978.
Order
And Now, the 28th day of October, 1980, the above plaintiff’s motion for summary judgment is granted in part. Judgment is hereby entered in favor of the plaintiff and against the defendant for the sum of $12,219.00, together with interest.
As to the remaining $1,896.00 claimed for by the plaintiff, the defendant’s cross-motion for summary judgment is granted pro tanto.
42 Pa. C. S. §761(a) (2).
Now “Office of Employment Security.”
Act of December 5, 1936, Second Ex. Sess., P.L. (1937) 2897, as amended, added by Section 8 of the Act of July 6, 1977, P.L. 41, 43 P.S. §864.
1 Pa. C. S. §1926.
43 P.S. §802.
There was no genuine issue as to any material fact.