Severances in PA
Does your organization offer a severance to employees? If so, you need to be aware that a severance pay may not impact the ability to collect UC benefits in PA. An employee receiving over 40% of the average annual wage in pay, which is $17,853.00, will have their UC benefits offset. Be careful not to state anything in your severance agreement that an employee could reasonably construe that this change in the law will not apply. Employers should also consider amending their severance-agreement-release language to state that the release is effective even if severance is offset or reduced under PA law.