Back to News

When Retirement Isn’t Really Retirement: Pennsylvania Supreme Court Finds Early Retirees Eligible for Unemployment Compensation Benefits

Published on

February 23, 2013

In Diehl v. Unemployment Compensation Board of Review, the Pennsylvania Supreme Court recently ruled that early retirees are eligible for unemployment compensation benefits, reversing over 30 years of case law on the subject. In this case, Howard Diehl, a 63 year-old shipping clerk, accepted an early retirement package his employer offered as part of a program to avoid layoffs. The package included continuation of health insurance benefits and payment of unused vacation leave. Subsequently, Diehl filed for unemployment compensation benefits, but his claim was denied because Diehl voluntarily resigned without a necessitous and compelling reason. The Unemployment Compensation Board of Review and the Commonwealth Court upheld the denial.

On appeal, the Pennsylvania Supreme Court reversed, holding that the Unemployment Compensation Law’s definition of “layoff” could be interpreted to include the voluntary acceptance of an early retirement package. Consequently, employers considering early retirement programs should now factor in the costs of unemployment compensation claims. Employers can no longer defend claims by early retirees on the basis that they voluntarily left employment.

Barley Snyder’s Employment Law Group frequently counsels employers on early retirement programs and incentives. Please contact a member of our Employment Law Group if you would like assistance in structuring legally compliant retirement programs and incentives.


Related News

View More News
News Alert
June 17, 2026

U.S. Supreme Court Clarifies Limits of the Federal Arbitration Act in Two Key Decisions

The U.S. Supreme Court recently decided two cases clarifying the extent of federal court oversight of arbitration cases under...

Learn More
News Alert
June 17, 2026

USCIS Policy Shift on Adjustment of Status (AOS): What Employers Need to Know

The U.S. Citizenship and Immigration Services’ (USCIS) May 21, 2026 Adjustment of Status Policy Memorandum (PM-602-0199) ha...

Learn More
Press Release
June 17, 2026

Barley Snyder Attorneys Sarah Doyle and Caleb Setlock Admitted to Practice in Maryland

For Immediate Release Lancaster, Pa. – Barley Snyder is pleased to announce that attorneys Sarah L. Doyle and Caleb P. Setl...

Learn More

Get in Touch

Our attorneys, paralegals and staff look forward to hearing from you. Please reach out to let us know how we can help.

Get In Touch
RECOGNIZED IN
Super Lawyers
Best Law Firms US News
Best Lawyers