What is the current status of PA Unemployment law with respect to severance when received in return for signing a

My wife is one month away from her termination. She will sign a "release of claims" agreement in return for a severance payment. I know MA law regards such payments as substantially different from severance, and they do not affect unemployment compensation. What is the case in Pennsylvania?

1 answer  |  asked Sep 6, 2015 4:28 PM [EST]  |  applies to Pennsylvania

Answers (1)

Doris Dabrowski
Severance payments in excess of 40% of the average PA wage are deducted from PA unemployment benefits. Severance means payments on account of separation from employment. Settlement payments to resolve claims against the employer are not necessarily severance payments. You wife should consult an attorney to analyze the proposal and to negotiate the terms of the proposed agreement.

My answers to MEL questions are based on general legal principles, rather than the facts of a particular situation. Applicable law may be affected by particular facts.

posted by Doris Dabrowski  |  Sep 8, 2015 07:39 AM [EST]

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