Appeal from the Order of the Employer Accounts Review Board in the case of Gulf & Western Corporation v. Commonwealth of Pennsylvania, Department of Labor and Industry, Office of Employment Security, Employer Accounts Review Board, Account No. 99-22322.
Frank Louis Cecchetti, Yarsky & Cecchetti, for petitioner.
Sean F. Creegan, Assistant Chief Counsel, with him Robert E. Chernicoff, Assistant Chief Counsel, for respondent.
President Judge Crumlish, Jr. and Judges Rogers, Blatt, Williams, Jr. and Doyle. Opinion by Judge Doyle.
[ 74 Pa. Commw. Page 494]
This matter is before us on a Petition for Review of an order of the Employer Accounts Review Board (Board) of the Department of Labor and Industry, which upheld a revised contribution rate assigned to
[ 74 Pa. Commw. Page 495]
the account of Gulf and Western Corporation (Gulf & Western). We affirm the order of the Board.
Gulf & Western is an employer in the Commonwealth subject to the provisions of the Pennsylvania Unemployment Compensation Law (Act).*fn1 In April of 1978, Gulf & Western applied, pursuant to Section 302 of the Act, 43 P.S. § 782(c),*fn2 and subject to the provisions of Section 301.1, 43 P.S. § 781.1(f),*fn3 to have its debit reserve balance adjusted to zero as of June 30, 1977. The application was approved and Gulf & Western's contribution rate was set at the 4.0% maximum for the years 1978, 1979 and 1980, in accordance with Section 301.1.*fn4 On July 10, 1980, the Legislature enacted amendments to the Unemployment Compensation Law*fn5 raising the maximum contribution rate, retroactively effective to January 1, 1980. Gulf & Western's contribution rate for 1980 was thereafter revised upward to 5.65% in accordance with the
[ 74 Pa. Commw. Page 496]
amendments. The company sought review and redetermination in proceedings before the Board which resulted in the order appealed here.
First, Gulf & Western urges that since the amendment to Section 301.1(f) of the Act provides a higher 1980 contribution rate for employers who elected to have their reserve balance adjusted after January 1, 1980, and Gulf & Western's election was made in 1978, its 1980 contribution rate should remain at 4.0%. The Board, in its opinion points out that Section 301.1(f.1) not Section 301.1(f) governs and authorizes the recalculation of Gulf & Western's 1980 contribution rate. The Board is quite correct. Section 301.1(f.1) provides:
Notwithstanding any other provisions of this act, employers who elected to have their negative reserve account balance adjusted for taxable years 1978, 1979 or 1980 will be liable for contributions at the maximum rate specified in ...