Appeal from the Order of the Department of Labor and Industry, Office of Employment Security, in the case of Bridon American Corporation, Account No. 40-24716.
Robert D. Stets, McNees, Wallace and Nurick, for petitioner.
Sean F. Creeger, with him Karen Durkin, Assistant Chief Counsel, for respondent.
President Judge Crumlish, Jr. and Judges Williams, Jr. and Barbieri, sitting as a panel of three. Opinion by Judge Williams, Jr.
[ 75 Pa. Commw. Page 436]
Bridon American Corporation, an employer subject to the Unemployment Compensation Law (Law),*fn1 petitions for review of an Employer Accounts Review Board (Board) order affirming the Department of Labor and Industry, Office of Employment Security's
[ 75 Pa. Commw. Page 437]
(OES) denial of an appeal from Employer's assigned, upwardly revised contribution (tax) rate for calendar and taxable year 1980.
On April 22, 1980, Employer elected to adjust his negative reserve account balance*fn2 to zero for calendar year 1980 contribution rate purposes pursuant to Section 302(c) of the Law, 43 P.S. § 782.*fn3 The OES initially approved Employer's debit reserve account balance adjustment request, and, pursuant to Section
[ 75 Pa. Commw. Page 438301]
.1(f), 43 P.S. § 781.1(f),*fn4 a maximum contribution rate of 4.0% (four per centum) was imposed for calendar years 1980, 1981 and 1982. Invoking the Act 108-1980 amendments, OES subsequently revised Employer's contribution rate to the new maximum of 6.45% (six point forty-five hundredths per centum) and limited the debit reserve account balance adjustment "to a negative balance equal to ten per centum of [Employer's] average annual payroll." Raising statutory and constitutional arguments, Employer requested a review and redetermination of the 1980 contribution rate of the Board which affirmed the recalculated maximum contribution rate. This appeal followed.
[ 75 Pa. Commw. Page 439]
Employer first maintains that OES erroneously applied and misinterpreted the Act 108-1980 amendments in recalculating Employer's contribution rate to 6.45% (six point forty-five hundredths per centum). Amended Section 301.1(f) pertinently states that "[a]n employer whose reserve account balance is adjusted after January 1, 1980 . . . shall pay contributions at the maximum rate specified." (Emphasis added.) The issue, therefore, is whether the Employer by electing to adjust his negative reserve account balance in April 1980, the adjustment being effective as of June 30, 1979,*fn5 actually adjusted his ...