Definition Of Unemployment Vs Self-employment In Pa

[Clifton]

I've been out of work for almost 2 years now and it looks like my field won't revive for several more years, so I'm trying self-employment as a solar energy sales/consultant.

As I understand it, the law's definition of "employment" includes the requirement that you are earning money.  

All of my income in this "self-employment" will be from commissions.  Until I make my first sale, I am not earning any money.  So, in my books, I am not yet "employed".(I am voluntarily dispensing free information without any obligation of remuneration.)

Yet, the definition of "self-employed" in 402(h) doesn't seem to say anything about earning money. It seems to suggest that creating an LLC, buying a laptop computer, etc are grounds for terminating UC benefits.

So, can I continue collecting unemployment compensation while trying to find my first commission?

Is it worth fighting the UC folks on this?  

And if not, is anyone doing anything to amend the law, so that the PA UC system encourages a transition to self-employment rather than discouraging it?  

[osryd]

Jay,

Yes sir,   I hear you loud and clear on this topic.....    I can tell you the definition of what constitutes employee, self employment, independent contractors, etc. is very different in a court versus what is in PA code or unemployment regulations.  This specific topic and how it is written is often interpreted differently by judges than the public;  not because we're dolts, but because it is in fact vague and open to interpretation that Pennsylvania will not define.

It is a thin line you walk when you are laid off and decide to "start" a sideline business that is similar to- or different from, your former position from which you were laid off.

Many people get caught up in trying to improve their lives and find the state of PA pulling the carpet out from under them.    I have wanted to call the local radio talk show about this topic for months.  Maybe I'll do it.   This part of UC law in PA needs to be reformed- especially in THIS economy.   

I am not passing the buck here,  but there is a blog I found with an INCREDIBLE thread going over much of the details that you will want to discuss on this unemployment topic in Pennsylvania.   Go to the link I provided below and read the whole thing.   It references parts of the law like you did including 402(h) and a few others you may not be aware of.   

The link won't display here on this site- too long...  So, do a Google search for these terms:

cvtips, sideline, PA unemployment

It should be the first result.

Another idea is go to Google and do a search for the terms:   Pennsylvania circuit court sideline unemployment    and there will be a number of cases you can read on the topic to see how they panned out....  not always good.

Good luck,

Brian Phillips

Harvis Human Resource Services and Outsourcing

Harvis Inc.http://www.HARVIS.org

Good luck and I hope this helps....