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Beistle Co. v. Commonwealth

Commonwealth Court of Pennsylvania
Mar 31, 1983
457 A.2d 1029 (Pa. Cmmw. Ct. 1983)

Summary

In Beistle Co. v. Unemployment Compensation Board of Review, 73 Pa. Commw. 205, 457 A.2d 1029 (1983), we held that bonus payments from the employer not paid with respect to the weeks in which they were received were proprely excluded from calculations to determine eligibility for partial benefits.

Summary of this case from Colello v. Commonwealth, Unemployment Compensation Board of Review

Opinion

Argued September 15, 1982

March 31, 1983.

Unemployment compensation — Unemployment Compensation Law, Act of December 5, 1936, P.L. (1937) 2897 — Production bonus — Annual bonus.

1. The mere receipt of a payment during the same week that unemployment compensation benefits are sought is not enough to include that payment in the equation which will determine a claimant's eligibility for benefits; the test under Section 4(u) of the Unemployment Compensation Law, Act of December 5, 1936, P.L. (1937) 2897, requires that payments be made with respect to such week that unemployment compensation benefits are sought; therefore, a production bonus and an annual bonus having no relation to the weeks received do not figure into the equation. [207]

Argued September 15, 1982, before President Judge CRUMLISH, JR. and Judges BLATT and DOYLE, sitting as a panel of three.

Appeal, No. 2381 C.D. 1980, from the Order of the Unemployment Compensation Board of Review in the case of In Re: Claim of Malgram Jones, Jr., No. B-187847.

Application to the Office of Employment Security for unemployment compensation benefits. Application denied. Applicant appealed. Referee awarded partial benefits. Employer appealed to the Unemployment Compensation Board of Review. Appeal denied. Employer appealed to the Commonwealth Court of Pennsylvania. Held: Affirmed.

Kenneth F. Lee, for petitioner.

John T. Kupchinsky, Associate Counsel, with him Richard L. Cole, Jr., Chief Counsel, for respondent.


This is an appeal by The Beistle Company from the decision and order of the Unemployment Compensation Board of Review (Board) which affirmed the decision of a referee granting partial unemployment compensation benefits to Malgram Jones, Jr. (Claimant). For the reasons which follow, the order of the Board is affirmed.

The facts are not in dispute. Claimant, who was employed as a machine operator for Beistle, had a regular work schedule of four, nine-hour shifts, Monday through Thursday. From December 21, 1979 through January 6, 1980, Claimant did not work. Claimant's absence during this period was the result of nine regular days off, three voluntary vacation days, three holidays and two unexplained absences. Although he never actually reported for work, Claimant received gross pay of $138.86 for the week ending December 29, 1979. This pay included $55.25 for two voluntary vacation days and a production bonus of $83.66. Similarly, for the period ending January 5, 1980, Claimant received gross pay of $152.26 which included $27.60 for one voluntary vacation day and an annual bonus of $124.66. Claimant, whose regular gross pay was $124.20 per week, applied for partial unemployment compensation benefits for these two weeks. The referee's award of partial benefits was, in effect, based upon the decision to exclude these bonuses from consideration of Claimant's eligibility for the weeks in question. After the Board affirmed the referee's award, Beistle appealed to this Court.

Beistle closed its plant on December 24th and 25th and January 1st. Employees with at least one year of service were paid for these holidays. Since Claimant had only been employed for about eight months, he received no compensation for these holidays.

Section 401 of the Unemployment Compensation Law (Law) provides that compensation is payable to any employee who is or becomes unemployed. Section 4(u) of the Law, 43 P. S. § 753(u), defines "unemployed" and provides, in pertinent part, that:

Act of December 5, 1936, Second Ex. Sess., P.L. (1937) 2897, as amended 43 P. S. § 801.

An individual shall be deemed unemployed . . . with respect to any week of less than his full-time work if the remuneration paid or payable to him with respect to such week is less than his weekly rate plus his partial benefit credit.

The only issue presented here is whether the production bonus and the annual bonus were properly excluded from the calculations which determined Claimant's eligibility for partial benefits for the weeks ending December 29, 1979 and January 5, 1980. We conclude that the Board's application of the law in excluding these bonuses was correct.

The mere receipt of a payment during the same week that compensation benefits are sought is not enough to include that payment in the equation which will determine a claimant's eligibility for benefits. As set forth above, the test of Section 4(u) of the Act requires that payments be made with respect to such week that unemployment benefits are sought. As Judge MacPHAIL noted in Hock v. Unemployment Compensation Board of Review, 50 Pa. Commw. 517, 522, 413 A.2d 444, 446-447 (1980):

Merely because the payments were made during the weeks at issue does not mean that they were made with respect to those weeks. The Unemployment Compensation Law does not define the term "remuneration." The standard judicial definition of the term, however, is "payment for services performed." Gianfelice Unemployment Compensation Case, 396 Pa. 545, 555, 153 A.2d 906, 911 (1959). The question, then, is when were the services performed for which Claimant received payment. (Emphasis in original.)

The production bonus, which was received during the week ending December 29, 1979 corresponds to Beistle's production in November. The annual bonus, received during the week ending January 5, 1980, equals two percent of an employee's earnings in 1979. Clearly, although the bonuses were received during the weeks in question, they were not paid with respect to those weeks.

We therefore affirm the order of the Unemployment Compensation Board of Review.

ORDER

NOW, March 31, 1983, the order of the Unemployment Compensation Board of Review, at number B-187847, dated September 16, 1980, is hereby affirmed.


Summaries of

Beistle Co. v. Commonwealth

Commonwealth Court of Pennsylvania
Mar 31, 1983
457 A.2d 1029 (Pa. Cmmw. Ct. 1983)

In Beistle Co. v. Unemployment Compensation Board of Review, 73 Pa. Commw. 205, 457 A.2d 1029 (1983), we held that bonus payments from the employer not paid with respect to the weeks in which they were received were proprely excluded from calculations to determine eligibility for partial benefits.

Summary of this case from Colello v. Commonwealth, Unemployment Compensation Board of Review
Case details for

Beistle Co. v. Commonwealth

Case Details

Full title:The Beistle Company, Petitioner v. Commonwealth of Pennsylvania…

Court:Commonwealth Court of Pennsylvania

Date published: Mar 31, 1983

Citations

457 A.2d 1029 (Pa. Cmmw. Ct. 1983)
457 A.2d 1029

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