Pennsylvania Unemployment Law

Unemployment compensation, also called unemployment insurance (U.I.), is a federal government program administered by the states in conjunction with the U.S. Department of Labor. It’s intended to provide qualified unemployed workers with financial and work search support.

This page summarizes Pennsylvania’s unemployment law and links to more detailed articles that can help you answer specific questions. Because the law is complicated and may be different for your situation, we suggest consulting an employment law expert in a city near you to give you the best advice about your unique circumstances.

Unemployment Eligibility

Each state makes its own rules regarding eligibility and administration, so Pennsylvania may differ from other states regarding factors such as weekly benefit amounts and the duration of benefit payments. You can read more about the general unemployment process and requirements.

Pennsylvania’s Office of Unemployment Compensation administers its unemployment compensation (U.C.) program.

A Pennsylvania resident must meet the following criteria to qualify for U.I.:

• Have lost their job through no fault of their own.
• Have earned enough wages during a base period.
• Be physically able to work.
• Be actively searching and available for immediate work.

Claimants must also register with P.A. CareerLink.

Eligibility rules can be confusing. Pennsylvania provides the Pennsylvania Unemployment Compensation Handbook and an F.A.Q. to help claimants.

Am I Eligible for Unemployment Benefits if I Quit?

An individual who quits is typically ineligible for employment benefits. The one exception is if the individual left the job for good cause.

The Pennsylvania Office of Unemployment Compensation will request additional information from the claimant and employer to determine the claimant’s eligibility for benefits. After the fact-finding process concludes, the state will mail a Notice of Determination to both parties.

What if I Get Fired?

A terminated individual is eligible for unemployment benefits only when they are not at fault for being fired. For example, repeated employee misconduct, such as excessive absences, intoxication on the job, or sexual harassment, will typically disqualify the individual for unemployment benefits.

When a terminated employee applies for unemployment compensation, the Pennsylvania Office of Unemployment Compensation will request additional information from the claimant and employer to determine the claimant’s eligibility for benefits. After the fact-finding process concludes, the state will mail a Notice of Determination to both parties.

What if I Am Laid Off?

An individual whose employer laid them off or has experienced a significant reduction in hours due to lack of work is typically eligible for unemployment benefits. However, they must meet all other state eligibility requirements.

Maintaining Eligibility for Unemployment Benefits

Pennsylvania unemployment compensation recipients must periodically recertify their eligibility by filing a weekly claim.

The claimant must report the following information for the previous week in their weekly claim:

• The gross amount of earnings for work performed, including how much the claimant would have earned if they were absent from work when work was available.
• The gross amount of holiday and vacation pay.
• A record of work search activities completed.

Generally, claimants must apply for at least two jobs and participate in one work search activity every week.

Claimants must continue to file a weekly claim as long as they are totally or partially unemployed until they exhaust their benefits.

What Is the Weekly Benefit Amount?

Benefits are available to eligible Pennsylvania citizens for 18 to 26 weeks. The exact duration depends on the number of credit weeks the claimant has in the base year. The state may extend the benefit period in certain circumstances.

Pennsylvania makes benefit payments via debit card or direct deposit. The claimant’s wages in the base year determine their weekly benefit rate (W.B.R.). The W.B.R. typically equals approximately half of the claimant’s full-time weekly wage.

What Information Must the Employer Provide?

While states vary in what information they require from an employer for an unemployment insurance claim, the following is typical:

• Confirmation that the employer was required to pay unemployment insurance contributions on the employee’s wages.
• The reason for the employee’s separation.
• The employee’s last day of work.
• Whether the separation is temporary.
• The employee’s gross wages for each week during a specified period.

Are Unemployment Benefits Taxable?

Pennsylvania does not tax unemployment benefits, but they count as part of gross income for federal income tax. The state provides the worker with Form 1099-G reporting the unemployment benefits paid and federal income tax withheld.

When Can Requirements for Unemployment Benefits Be Waived?

States or the federal government can waive the requirements for unemployment benefits under exceptional circumstances, such as when an emergency forces companies to shut down for some time. For example, New York, Florida, and several other states waived their work search requirement during the COVID-19 pandemic.

Additionally, Indiana, Louisiana, Michigan, and New York, among others, waive the work search requirement if the individual is temporarily laid off or seeking work through a union hiring hall.

What if Pennsylvania Denies My Application for Benefits?

Pennsylvania claimants can appeal a decision to deny benefits within 21 days from the determination date.

Claimants can file an appeal either online or by fax or mail.

A U.C. Referee will conduct a hearing and issue a decision based on the testimony and evidence presented. If the referee denies benefits, the claimant can file an appeal to the U.C. Board of Review within 21 days of the date of the referee’s determination.

The claimant may appeal the U.C. Board of Review’s decision to the Commonwealth Court within 30 dates of the mailing date of the Board’s decision.

If you need help filing an appeal, discussing your options with an employment lawyer is wise.