Can an Individual Who Rejects a Job Offer Continue to Collect Unemployment?

In his April 20, 2020 press conference, which can be viewed here, Pennsylvania Governor Tom Wolf raised eyebrows among employers with his comments about employees’ eligibility for unemployment benefits.  Governor Wolf was asked if an individual who was laid off but was later recalled to work would be eligible for unemployment benefits if he/she did not return because he/she was making more money while receiving state unemployment benefits and Federal Pandemic Unemployment Compensation – the additional $600/week benefit from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”).  Governor Wolf answered that unemployment benefits for such an individual would not be revoked, and suggested that offering higher wages would incentivize individuals to return to work.

Employers were confused by the governor’s remarks, as it is well-established under Pennsylvania law that an unemployment claimant must be at all times ready and willing to accept “suitable work,” which is defined as “all work which the employee is capable of performing.”  If the claimant refuses a job offer, he/she bears the burden of showing that the work was not “suitable.”  Although a claimant may refuse an offer of “suitable work,” he/she must prove that he/she acted in good faith and had “good cause” for the refusal.  To constitute “good cause,” the claimant must offer “real and substantial reasons” for refusing such work.

The Unemployment Compensation Board of Review and Pennsylvania’s courts have not ruled on whether a claimant has “good cause” to refuse an offer for suitable work during a state-declared public health emergency because he/she is uncomfortable going back to work or is financially advantaged from increased unemployment benefits.  Needless to say, it will take a long time for this issue to work its way through the unemployment and court systems.  Ultimately, although we are of the opinion that the governor’s comments run contrary to long-established law, the decision on whether an individual is eligible for unemployment benefits is beyond an employer’s control.

What, then, can an employer do if it encounters a situation such as this?  Under Pennsylvania’s Unemployment Compensation Law, an employer that has made an offer of suitable work to a claimant that has been rejected may notify the state Department of Labor & Industry (“L&I”) of the refusal within seven (7) days of the refusal. Employers can submit this information to L&I on Form UC-1921W, along with any additional documentation, electronically or by fax.

For questions about this or any other labor and employment topic, please do not hesitate to contact the attorneys at Hoffman & Hlavac.  Please be sure to subscribe to our blog and follow us on social media to stay on top of the latest developments that affect your workplace.