Opinion
No. 1144 C.D. 2012
12-06-2012
William M. Stewart, Petitioner v. Unemployment Compensation Board of Review, Respondent
BEFORE: HONORABLE RENÉE COHN JUBELIRER, Judge HONORABLE MARY HANNAH LEAVITT, Judge HONORABLE ANNE E. COVEY, Judge
OPINION NOT REPORTED
MEMORANDUM OPINION BY JUDGE COVEY
William M. Stewart (Claimant) petitions this Court for review of the Unemployment Compensation Board of Review's (UCBR) May 29, 2012 order affirming the Referee's decision that Claimant is not financially eligible for unemployment compensation (UC) benefits. The issue for this Court's review is whether Claimant earned sufficient wages in his base year to qualify for benefits. We affirm.
Merck & Co., Inc. (Employer) employed Claimant full-time from June 1998 until June 6, 2007, when Claimant took a medical disability leave of absence due to depression, anxiety and high blood pressure. He used his sick time, then received long-term disability benefits until he officially retired on February 1, 2012. Claimant performed no work for Employer or earned any other wages after June 6, 2007.
Claimant applied for UC benefits effective January 29, 2012. The Altoona UC Service Center denied Claimant benefits because he earned no income in the applicable base year. Claimant appealed, and a hearing was held by a Referee. Employer did not attend the hearing. On March 29, 2012, the Referee affirmed the UC Service Center's decision. Claimant appealed to the UCBR. On May 29, 2012, the UCBR affirmed the Referee's decision. Claimant appealed to this Court.
This Court's review is limited to determining whether the findings of fact were supported by substantial evidence, whether constitutional rights were violated, or whether errors of law were committed. Brunswick Hotel & Conference Ctr., LLC v. Unemployment Comp. Bd. of Review, 906 A.2d 657 (Pa. Cmwlth. 2006).
Although Claimant acknowledges that he received no wages after June 6, 2007, he contends that he is eligible for UC benefits because he paid federal income tax on income he received while on disability. Section 401 of the Unemployment Compensation Law (Law) states:
Act of December 5, 1936, Second Ex.Sess., P.L. (1937) 2897, as amended, 43 P.S. § 801.
Compensation shall be payable to any employe who is or becomes unemployed, and who--Section 4(a) of the Law, 43 P.S. § 753(a), defines "base year" as "the first four of the last five completed calendar quarters immediately preceding the first day of an individual's benefit year." Section 4(x) of the Law, 43 P.S. § 753(x) defines "wages" to include "all remuneration . . . paid by an employer to an individual with respect to his employment[.]" However Section 4(x)(8) of the Law specifically excludes
(a) Has, within his base year, been paid wages for employment as required by section 404(c) of this act: Provided, however, That not less than twenty per centum (20%) of the employe's total base year wages have been paid in one or more quarters, other than the highest quarter in such employe's base year.
[t]he amount of any payment on account of sickness . . . or medical or hospitalization expenses in connection with sickness . . . made after [December 31, 1950] by an
employer to or on behalf of an individual performing services for it after the expiration of six calendar months following the last calendar month in which the individual performed services for such employer.43 P.S. § 753(x)(8). This Court has held that because disability payments are made on account of a disability rather than in consideration for services a claimant provides for the employer, they do not constitute wages for purposes of base year calculations. Karamanian v. Unemployment Comp. Bd. of Review, 405 A.2d 1364 (Pa. Cmwlth. 1979). Moreover, the mere fact that payments received by a claimant may be subject to federal income tax as gross income does not make them wages under Section 4(x) of the Law. Sharvy v. Unemployment Comp. Bd. of Review, 400 A.2d 1387 (Pa. Cmwlth. 1979).
Claimant's filing date established "a base year consisting of the fourth quarter of 2010 and the first three quarters of 2011." Referee's Decision at ¶ 7. It is undisputed that Claimant received no wages in his base year. Without a base year from which to calculate benefits, Claimant was financially ineligible for benefits. Accordingly, the UCBR properly affirmed the Referee's denial of benefits.
This Court notes that Section 204(b) of the Workers' Compensation Act states:
Act of June 2, 1915, P.L. 736, as amended, 77 P.S. § 71. --------
For the exclusive purpose of determining eligibility for compensation under the [Law], any employe who does not meet the monetary and credit week requirements under [S]ection 401(a) of [the Law] due to a work-related injury compensable under this act may elect to have his base year consist of the four complete calendar quarters immediately preceding the date of the work-related injury.However, although Claimant contends that his disability was work-related, he never applied for workers' compensation benefits. Thus, Section 204(b) of the Workers' Compensation Act does not apply.
Based upon the foregoing, the UCBR's order is affirmed.
/s/_________
ANNE E. COVEY, Judge
ORDER
AND NOW, this 6th day of December, 2012, the Unemployment Compensation Board of Review's May 29, 2012 order is affirmed.
/s/_________
ANNE E. COVEY, Judge