Overruling more than 30 years of precedent, the Pennsylvania Supreme Court has ruled that the “voluntary layoff” provision of the Pennsylvania Unemployment Compensation Law permits employees to receive unemployment compensation benefits when they accept an early retirement incentive offered as part of a reduction in force. Diehl v. Unemployment Compensation Bd. of Rev., No. 51 MAP 2011 (Pa. Dec. 28, 2012). Earlier case law held that employees who received early retirement incentives in a reduction in force were not eligible to receive unemployment compensation. The Supreme Court found that those cases were unsupported by the unemployment compensation law’s plain language.
Home > State Law Articles > Pennsylvania > Unemployment Compensation (PA) > Reversing Precedent, Pennsylvania High Court Rules Voluntary Early Retirees Entitled to Unemployment Benefits