Pa. Employers: Get Ready For More Early-Retirement Claims

Law360, New York (February 8, 2013, 1:04 PM EST) -- Reversing 30 years of jurisprudence to the contrary, the Pennsylvania Supreme Court has declared that employees who accept early-retirement incentive plans are eligible for unemployment compensation benefits. See Diehl v. Unemployment Compensation Board of Review (ESAB Group Inc.) (Pa. Dec. 28, 2012).

Under Section 402(b) of the Unemployment Compensation Law (UC Law), unemployment compensation benefits are generally unavailable to employees who voluntarily resign their employment, unless such employees can demonstrate "necessitous and compelling reasons" for leaving their employment. 43 P.S. §802(b). The "voluntary layoff option" proviso...
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