No, You Will NOT Go to Jail!
Department of Labor
There are 2 types of overpayments that one can be charged with under Pennsylvania Unemployment Law. The first, and most troublesome, is denoted a "fraud" or "at fault" overpayment. We will discuss the most common scenario for such a finding in this Post.
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| It Will Investigate Why You Are No Longer Employed Every Time |
What to Say When You Apply for Pennsylvania Unemployment Benefits - Do Not Say You Lost Your Job Due to a Lay Off or Reduction in Force if You Were Terminated from Your Job
Generally, the most common situation that results in a "fraud" or "at fault" overpayment occurs when a person applying for benefits states that the reason they are no longer employed is because of lay-off, lack of work or reduction in force when in fact he/she was terminated.
It Can Happen to the Best of Us BUT
Brighter Days ARE Ahead
It is very simple, if you are applying for benefits because your employer decided to end your employment you must honestly state on your application what the employer told you was the reason that you were being let go.
The choices are almost always 1) termination/fired; 2) lay-off; 3) reduction in force ("RIF"); or, 4) lack of work.
Completing an Application for Pennsylvania Unemployment Compensation - What is a Lay Off? What is a Reduction in Force? What is a Termination? What Does Lack of Work Mean?
The general rule is that RIFs usually involve a group of people all being permanently separated from employment at the same time. If you were the only one let go, you were probably not part of a reduction in force.
Usually, employees who are laid-off (a frequent occurrence for union or seasonal workers) are told at the time of lay-off that they are "eligible for rehire" or will be recalled when business picks up. Lay-offs are typically temporary separations due to a downturn in business.
Being let go for lack of work is often like a small scale RIF. The separation is permanent, and has nothing to do with the employee's performance.
NOTE 1: The above principles almost always apply to larger companies. However, with smaller companies (i.e. 10 or so employees or less), employees are sometimes let go due to a financial downturn, merging of job responsibilities or concern over the long-term viability of the company.
This type of small scale "restructuring can result in only one employee being RIFfed, laid-off or due to lack of work.
NOTE 2: Employees who are let go due to a RIF, lack of work or lay-off are deemed to have been let go through no fault of their own, and are thus entitled to unemployment benefits in all cases. If, on the other hand, one is terminated for "willful misconduct," no benefits will be paid.
If the company provides a reason for the separation that relates to the your actions/inactions, or to your alleged qualifications/performance (or perceived lack thereof), you were fired.
It hurts to say you were fired, but, it is what it is.
If You Say You Lost Your Job Due to Lay-Off, Lack of Work or Reduction in Force When in Fact You Were Fired, You Will Very Likely be Denied Benefits and Charged With a Fraud or At Fault Overpayment
Pennsylvania's application for unemployment compensation requires applicants to state the reason they were told their employment was ending. Hence, that is what you must do (as opposed to putting down what you believe to be "the real reason" you were let go).
The most common reason that someone is charged with a fraud or at fault overpayment is because they said on their application that they lost their job due to a lay-off, lack of work or a reduction in force when in fact they were terminated.
Why?
When an applicant for Pennsylvania unemployment claimant loses a job through no possible fault of their own (i.e. part of a RIF, for lack of work or due to lay-off), the applicant is eligible for benefits and will begin to be paid benefits immediately.
However, immediately after the application is processed (i.e. at the same time the first check for benefits is being paid to the applicant) the Pennsylvania Service Center then writes the employer to ask it why the claimant is no longer employed.
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| Fraud or At Fault Overpayments - Not a Good Thing |
You Can Still Win Benefits, and Remove the Overpayment Finding, if You Prove at a Pennsylvania Unemployment Referee Hearing That You Were Not Fired for Willful Misconduct
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| If The Employer Cannot Prove You Engaged in "Willful Misconduct" - You Become Eligible for Benefits Again and the Overpayment Evaporates |
That means that is you win at the Referee Hearing (i.e. defeat the employer's claim that you engaged in willful misconduct), you will not only start getting benefits again, but the overpayment finding is wiped out as well.
NOTE 3: We have found that many employees disbelieve the reasons told to them for why they were being let go, instead choosing to believe that there was some other reason (i.e. they were being let go as a cost-cutting move, due to lack of work, etc.) for the termination. Thus, when they apply for benefits, they list what they believe to be "the real reason" for their termination (i.e. lack of work or lay-off).
For reasons explained above, this is not a sound idea. List the reason that the employer told you for your separation of employment on the application. This will not only increase your chances of winning the initial determination, but will help you avoid an at fault or fraud overpayment determination.
Click Here to see the Department of Labor's explanation concerning overpayments.
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HERE
ARE SOME OTHER LINKS YOU MAY FIND WORTHWHILE:
Should I Hire a
Lawyer for My Unemployment Appeal Hearing in Pennsylvania?
Pennsylvania
Unemployment Lawyer - Willful Misconduct Referee Hearings
Seven Things to Know
About The Pennsylvania Unemployment Compensation Board of Review
I Want to Quit My Job
and Get Unemployment Benefits in Pennsylvania
Pennsylvania
Unemployment Determination of Financial Eligibility - PENNSYLVANIA UNEMPLOYMENT
LAWYERS
The Burden of Proof
in a Pennsylvania Unemployment Appeal Referee Hearing
Should I Resign or Let Them Fire Me? What Happens If I
Quit My Job? What Rights Do I Lose If I Resign or Quit From My Job?
Unemployment Applications for Self-Employed Business
Owners, Independent Contractors and Gig Workers is Now Available in
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Frequently Asked Questions from the Pennsylvania Department of Labor
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current unemployment rate in Pennsylvania?
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- What
occupations have the lowest employment in Pennsylvania?
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