More Than 6.2 Million Have Been Out of Work for More Than 6 Months - But They are Well-Rested

Recent statistics discussed by HuffPost indicate that more than 6.2 million Americans have been out of work for more than 6 months, and are sleeping a lot more than employed folks.
I am not sure the 6.2 million is accurate - I think it is way too low.  Many unemployed eventually fall off of the statistical paradigm (i.e. they are no longer qualified for unemployment, or they take part-time jobs and are deemed, for statistical purposes, "employed"). 

The internal data of the study also suggests the number is low.  For example, a study conducted over a roughly 6 month period showed that only approximately 20% of recently unemployed persons received job offers, and many of those offers were for part-time work.  That means that only 1 out of 5 unemployed workers receive even a part-time job offer within 6 months of unemployment.  Statistics indicate that there are 14 million people who are unemployed right now, and that number is undoubtedly low.

Apparently, the President is considering a jobs initiative program, which it is expected will be announced sometime in September. 

We believe an affirmative action program requiring employers to hire a certain percentage of unemployed persons is a viable and effective partial remedy to the joblessness crisis.  Please pass that along to the President's economic team.

Regardless of what forms the job initiative takes, we apparently will have to rouse the unemployed from their slumbers to get them on board.  According to Alan Krueger, a Princeton professor who serves on President Obama's Economic Council, long-term unemployment leads one to sleep a lot more.

Not surprising. Let's see: No Job + No Money (and maybe no Cable TV) = boredom and frustration = Sleep More.  Got it.  The problem is, this type of a "study" is grist for the conservative view of some that unemployed people are lazy and shiftless.  I don't think that is what Professor Krueger is saying but, really, what is the point of such a conclusion being made by someone on the economic team of POTUS?

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To be an investment winner, start very early.....

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)  

To be an investment winner, start very early in life....

If there is one thing in investing which can make you a real winner, is the power of compounding. And it works very very silently, but makes a remarkable difference over the longer periods of time. Lets look @ the case of three friends who are aged 50 now and see who won in the race of investing. The friends are Mr. Cautious, Mr. Responsible, Mr. Fun.

Mr. Cautious started investing @ his age 30 by putting Rs 1 lac @ a return of 12% PA. After 20 years, @ the age of 50 his money would have grown to 

Rs. 9,65,000

  

Mr. Responsible started investing @ his age 35 by putting Rs 1 lac @ a return of 15% PA. After 20 years, @ the age of 50 his money would have grown to 

Rs. 8,14,000

Mr. Fun started investing only @ his age 40 by putting Rs 1 lac but @ a return of 18% PA. After 20 years, @ the age of 50 his money would have grown to 

Rs. 5,23,500 

The results are there to be seen. 

# Mr. Cautious who earned 12%, lowest among the three still made good money because he started quite early in life and became a winner @ the end. Time ripened his money.

# Mr. Fun who started very late in his life and could not be a winner despite earning very high 18% returns on his investment. He finished third despite earning very high returns compared to the other two. The reason being he had little time compared to the other.

Key takeaways of this study are: 

# It's important to start investing early in life, even if the returns are comparatively low. That's how Mr. Cautious won the race, despite earning lower returns than the other two.

# Even if you make high returns @ the later stage, you may not make enough money because of the time factor. That's how Mr. Fun lost the race, despite earning 18% returns.

# Power of compounding (POC) is @ work very very silently and effectively.

Sooner you realize the importance of POC, better it is for your financial future...... Because POC makes no noise and it's very silent in multiplying your value of investment.

Experts @ Money Avenues can make you an investment winner by providing right investment solutions.


(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com) 

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President Obama Says He is Considering Ban on Discrimination Against Unemployed - BAD IDEA

An Affirmative Action Plan is the Solution to Discrimination Against the Unemployed

We have in the past posted on the rampant, insidious and harmful discrimination against the unemployed.  A few months ago, TLNT posted an article of mine positing that, despite good intentions, making such discrimination illegal (akin to discrimination based upon race, sex, age, etc.) is an unworkable solution.  We have suggested instead that something like to an affirmative action plan for the unemployed (i.e.a requirement that a certain percentage of all new hires be unemployed candidates) is the solution to the problem.  In fact, I believe that such a plan could provide a substantial remedy for the joblessness crisis, and could thereby stimulate our economic recovery. 

An anti-jobless discrimination bill could very well have the opposite effect.

At Least 6.2 Million Qualified Americans Are Have Been Out of Work for More Than 6 Months

Recent statistics indicate that more than 6.2 million Americans have been unemployed for more than 6 months (there are currently an estimated 14 million unemployed Americans). There are great candidates out there who are unemployed, and companies are in fact hiring every day.  Why not require that companies hire one currently-unemployed person for every 3 currently-employed people that are hired?

President Obama, who certainly cannot be accused of attacking the jobless problem with excessive vigor, stated yesterday on a radio show that discrimination against the jobless "makes absolutely no sense." 

Geez, Mr. President, and with all due respect, it certainly seems to make a lot of sense for a certain segment of corporate America, and I don't think your opinion is going to change the practice.

It's time to do something, Mr. President.  Now.

Making Discrimination Against the Unemployed Illegal Is Not a Workable Solution

The President continued by referring obliquely to (unspecified) pending legislation that would make it illegal to discriminate against the unemployed.  Reading between the lines, some of the legislation at issue would make it illegal to state in advertisements or job postings "Unemployed Need Not Apply," or words to that effect.

Oh, that will fix the problem.  Seriously?  "We can't publicly state we won't hire jobless candidates?  What are we going to do?!"

Other legislation seeks to make discrimination against the unemployed unlawful, and gives aggrieved individuals the right to sue in federal court.  Click Here to see the text of the proposed Fair Employment Opportunity Act of 2011. 

This act would make "unemployed" a "protected" status similar to race, sex or age, and is being proposed by some (unrealistic) Democrats; no Republicans are sponsoring this bill.  In my view, it will never see the light of day.  No way.  Any qualified legislator knows that such a law would result in a flood of litigation such as we have never seen in America.  Why?  Based upon my experience, an overwhelming majority of unemployed people who apply for but are denied a job for which they are qualified will seek to file a lawsuit alleging that their jobless status was the reason they were not hired.

The EEOC Will Be Overwhelmed With Charges of Discrimination

Presently, employees who believe they have been subjected to illegal discrimination must, before filing a lawsuit in court, file a charge of discrimination with the EEOC, which is then duty-bound to investigate such charges.  Although I do not believe Congress will ever pass  a "anti-jobless discrimination" bill, if one is passed we can assume that aggrieved persons will first have to file a charge with the EEOC.  In which case, perhaps the unemployment crisis will come to an end after all.  Why, you say?  Because the EEOC will have to hire about 5 million people to handle all of the Charges of Discrimination that will promptly be filed by many of our more than 14 million unemployed workers.  Oh, the chaos.

The Federal Court System Would Be Overwhelmed

Also, if an anti-jobless discrimination law is passed, we can expect that our entire federal judiciary will walk off of the bench in protest.  That is so because, if a federal law is passed making such discriminatory acts illegal, then the putative victims of such discrimination will have the right to file a lawsuit in federal court after they have exhausted their EEOC charge obligations.

Can you imagine? More than 14 million unemployed people having the right to file a federal lawsuit against corporate America on the grounds of jobless discrimination?!  Many on the federal bench already view employment-based lawsuits as huge headaches due to the sheer volume of such cases. I can tell you that many unemployed people are angry and afraid, and definitely feel they are being discriminated against based upon their jobless status.

Did I mention the class action litigation that would be spawned by such a law? It doesn't take much imagination to foresee that large employers will quickly become the target of large groups of candidates challenging  the hiring practices and processes of the our corporate titans.  Class action employment lawyers will be lining up to take these cases!  Federal judges will quickly ponder the benefits of retirement.

An anti-jobless discrimination bill would be a recipe for disaster for our federal court system.  Take the incredible financial stress the unemployed are under, add a pinch of paranoia and mix in unfettered access to the federal courts?  Fugettaboutit.  Not gonna happen.

The Burden on Companies Would Be Unfair and Expensive

Look, I represent employees in lawsuits against employers on a regular basis.  I freely admit that I believe sometimes companies fire people based upon illegal factors. Moreover, I certainly think that companies do discriminate against the unemployed in making hiring decisions.  Even so, I believe that the impact of a law banning discrimination against the unemployed would have on companies would be unfair, and potentially crippling to any economic recovery.

Choosing qualified candidates for employment is not an easy task,  It is a very nuanced, sophisticated process that takes into account many factors beyond what is found on a resume. Subjecting companies to litigation simply because they selected a currently-employed candidate over an unemployed one will not stimulate the economy, but will have the opposite effect.  Fears of expensive, time consuming, resource draining lawsuits will stultify the desire of companies to make new hires.  Further, the cost of such lawsuits will chill economic growth, because companies will be spending time and money on lawsuits, rather than running their business.

So my objection to a law banning jobless discrimination is not based upon a belief that it does not happen - it does.  However, I believe that the proposed cure is more dangerous than the illness it seeks to remedy.

The Solution is an Affirmative Action Program

No, let's put some muscle into this critical project with a realistic, easy to administer law that provides a relatively painless, non-divisive solution without creating a new cottage industry of employment-related litigation.  How?

Simply require that a certain percentage of currently-unemployed qualified candidates be hired by each company making new hires.  It really is very simple.  And, easy to confirm and enforce to boot.  The numbers won't lie.  When a person is hired, companies are required under numerous federal laws to file paperwork with the government.  Now, just add a simple ingredient - a monthly report from all employers stating what percentage of new hires were previously unemployed.  Violators will be prosecuted.

Now, that's a workable solution.

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Pol's Press Release Says 2011 PA Unemployment "Reform" Will Save $1 Billion (Because the Unemployed Now Have to Look For Work)

A few months ago, we posted that the recent amendments to the Pennsylvania Unemployment were a bad deal for unemployed workers on the whole, since there were so many "take backs" that will affect future applicants.  Indeed, it is for this reason the amendment has been referred to as a "Reform."  Click Here for a discussion of the Bill's particulars.

In our initial post, we quoted a source saying that the Reform Bill would save $114 Million over a period of years.  In this connection, the term "save" in general refers to the benefits that will no longer be paid as they had in the past before the Reform bill.

We have just located a Press Release from State Representative Mike Turzai (R), which states that the savings from the reform bill will be nearly $1 Billion between now and 2018.  Click Here to read the Press Release.

An interesting aspect of this release is - where did he come up with that figure?  It's not from the severance provision - based upon my experience, there simply aren't that many people receiving severance packages worth in excess of $18,000.  And, the money won't be saved because the bill makes some people at the very lowest edges of the income scale ineligible for benefits.

No, I surmise, Rep. Turzai is surmising that the large bulk of the savings will come about as a result of the job search requirements included within the Reform Bill.

Indeed, the import of the Press Release, in my view, is that a lot of money will now be saved because now, the __________ (lazy? shiftless?) claimants receivingg benefits will now have to seek work, and so they will be on unemployment for a shorter period of time.

Why will they be on unemployment for a shorter period of time?  Because they will find jobs?  In some cases, yes.  However, in my experience, the overwhelming majority of people on unemployment are looking for work, with little success in many cases.  And I doubt that Rep. Turzai's $1 Billion projection is based upon an expectation of an improving jobs market.

No, the projected savings will result from the disqualifying provisions of the Reform Bill.  Rep. Turzai expects, in my opinion, that many unemployment claimants will in the future be disqualified from receiving unemployment under the Reform Bill because they will miss some deadline related to their job search, or fail to fill out some arcane form, thereby "disqualifying themselves" from the right to continue following benefits.

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Bath Tub investment planning....

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Bathtub Investment Planning... 

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -   

"Warren Buffett’s Bank of America Deal Sparked in the Bathtub"

"Warren Buffett: I Dreamt Up Bank Of America Deal In The Bathtub" 

"Warren Buffett's BofA Bathtub Decision"

 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 

We do get amused when a billionaire like Warren Buffett says he got the spark to invest $5 billion while bathing in the tub... Don't we?! Definitely I was terribly amused...

And, he made a cool $700 million returns immediately in the process..

But that's the hallmark of the men who always ensure to put their hard earned money to really good work... In simple terms, he makes his money work harder than him. Otherwise how can a man decide in the bath tub, when he has the other options to think like, the dress to wear that day, perfume to spray, watch to put on, suit to wear etc.,

This is a great takeaway for all of us who want to put their hard earned money to work even hard for us...

The next time do not complaint that...

# I have no time to plan my investments.

# I am busy with my office work.

# I am always on the travel.

# @ home busy helping out.

You still have time in the bath right?! Because it's your money and your money is hard earned... 

 

Next time, when you are hard pressed for time, do your investment planning while in the bath... You will never know, the spark can turn into a great investment idea.... 

(The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

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Skyrocketing health care costs....

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

  Sky rocketing health care costs.... 

Health care costs in India are rocketing... This is compounded by several factors:

# Innovations in medical science:

Medical science is innovating by the day and such innovations take care of the diseases which were once tough to crack. But such innovations come @ a huge cost.


Innovations in medical technologies: 

Medical technologies have undergone massive transformation in the last several years which has made diagnosis and cure even more accurate. But such technologies come @ a huge cost.




# Drastic changes in life styles:

Our life styles have changed in many ways. Our work, our eating habits, day to day living has made us prone to health risks. And they come @ a huge costs.

What must one do to tackle this?

# Your organization is kind enough to provide health cover to you and to your family. But don't be dependent only on your organization's health cover. During the times of job shifts and transitions, one will be left with no health cover. And during times of extreme distress, the cover may also be insufficient. And @ a later stage if one wants to take one, becomes very cumbersome due to age factors.

# Provide love, affection and liberal health cover for your dependent elders particularly your parents and if they are senior citizens, all the more crucial. There are health policies which take care of the senior citizens.


A glimpse of the future health care costs..........


If one were to spend Rs 3 lac now towards hospitalization,  can you imagine what could the cost after 20 years?

Approx Rs 49 Lacs

It may not cost you more to take a health insurance now... Go ahead and ensure your family's health care.

'Sarve Janah Sukhino Bhavanthu'

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

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PA Unemployment Hearings Via Telephone Easy to Obtain Under 2011 Amendments to Pennsylvania Unemployment Law

And that is not good news for employees.  Click Here to read a comprehensive post on the challenges of telephone hearings for Pennsylvania Unemployment claimants.

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Can I Get Unemployment In Pennsylvania If My Temporary Assignment Has Ended?

Click Here to read a comprehensive post on this issue.

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Pennsylvania Telephone Unemployment Hearings Soon to be the Norm in Pennsylvania

New Changes to Pennsylvania Unemployment Law Will Make Telephone Unemployment Hearings the Norm

Once upon a time, one could only obtain permission to appear at an unemployment Pennsylvania Unemployment Compensation hearing via telephone upon proof that one's residence or business was located more than 60 miles from the hearing site.

The 2011 amendments the Pennsylvania's Unemployment Law now make it possible for anyone to obtain permission to appear at such hearings telephonically upon mere request, irrespective of one's location.

On the surface, this looks good, particularly for claimants who have since become re-employed. 

However, I believe that the new telephone hearing law will greatly disadvantage unsuspecting employees who lack familiarity with the unemployment hearing process, to the benefits of attorney-counseled companies who have been going to unemployment hearings for years.

In addition to the strategical advantages that an employer can gain by appearing telephonically, it is also a cost-effective approach because, among other things, it eliminates the need for company representatives and witnesses to leave work and travel to and from the hearing location.  I note also that, in the past, it seemed to me that employers were sometimes reluctant to present some witnesses at a hearing, either due to work commitments  or out of fear that they would not do well under face-to face cross examination.  To my way of thinking, both such concerns are somewhat ameliorated by the new rules making it easy to appear telephonically at Pennsylvania unemployment hearings.

NOTE:  While in a telephone hearing Referee's make clear that witnesses are not to "signal" each other - i.e. a shake or nod of the head, mouthing answers, exchanging notes, does anyone believe that this does not occur?  It isn't hard to envision a "lowly" employee/witness being quietly (imperceptibly) "coached" by his/her boss to give certain responses, is it?  This would never, ever happen in front of a Hearing Room (or Courtroom), but it's easy to envision it happening in the boss's office, isn't it?

Therefore, for these reasons and others, I surmise many companies will increasingly seek to appear telephonically at unemployment hearings in Pennsylvania

My Employer is Appearing By Telephone at my Pennsylvania Unemployment Hearing - How Do I Prepare?

Click Here for some strategical tips on how to prepare for a telephone hearing.

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1099 Employees and Pennsylvania Unemployment Law

Can you get unemployment in Pennsylvania if your assignment through a temporary agency has concluded where you were employed on a 1099 basis (i.e. as an independent contractor)?  Yes, but there are some significant hurdles to overcome.  Click Here to learn more.

There are other, equally complex, issues facing people who, while on unemployment, took jobs as 1099 employees, only to see themselves disqualified from receiving unemployment benefits.  Click Here to learn more on those issues.

Other questions about Pennsylvania Unemployment law?  Click Here to read our answers to your FAQs.

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Are Temporary Employees Entitled to Unemployment in Pennsylvania?

Absolutely - provided certain requirements are met. 

THE INDEPENDENT CONTRACTOR ELEMENT

The most critical requirement is that you have to be an employee - as opposed to an independent contractor.  Under this prong of the analysis, it is, to be sure, often difficult to prove that you are an "employee" (as opposed to being an "independent contractor")  if you are paid on a 1099 basis [Note:  Skip this analysis if you are paid on a W-2 basis!]  That is so because one who is paid on a 1099 basis is presumed to be an independent contractor UNLESS the employee can prove that the temporary agency (not the client of the temporary agency) controlled the manner and means of the employee's day to day work activities.

Thus, if your relationship with the temp agency consists of sending in time sheets every week, and reporting to them when you are sick, etc., then you will be unable to prove that the temporary agency controlled the manner and means of your daily work activity.  In fact, the only reliable way you can prove that the temporary agency controls the manner and means of your daily work activity is if they are on the premises, supervising you, on a regular basis.

To make matters even worse, the other traditional defense to a finding that one is an independent contractor, that the individual is not engaged in self-employment, is also virtually ignored by the Pennsylvania courts when analyzing whether 1099 employees of temporary employment agencies are in fact independent contractors.  To learn more about the self-employment test, Click Here. 

I say this because a leading court decision in Pennsylvania on the issue found that an ordinary person who had never incorporated a business, or advertised via the Internet, who simply took a job for a temporary agency, was nevertheless "self-employed" because, even though he worked all day for the client, "he was permitted to provide services to...other employers."  That conclusion was reached even though the individual never did work for anyone other than the single client for whom he worked full-time over an 11 month period!

Although the above analysis is a pretty clear statement of Pennsylvania law, it nevertheless widely misses the mark, and bends over backwards to support corporations at the expense of individuals.

After all, when considering whether someone is an independent contractor, the test is supposed to be about the individual - not the employer.  Is the individual an entrepreneur?  Does the individual work for more than one client?  Does the individual have employees working for him/her?  Has the person incorporated?  Does the individual advertise his/her services? Does he/she have a Website, a Blog?  Do they use their own equipment and materials in performing the job?  Are they free to accept or reject work assignments without ramifications?  Is the person free from direction and control while performing they're day to day tasks?  If the answer to many of these questions is "Yes," then the person is typically deemed to be engaged in self-employment (and thus is a 1099 independent contractor).  The converse is also true (if the answer to most of these is "No," then the person is in fact an employee who should be paid W-2 wages and is entitled to unemployment).

The above constitutes the traditional analysis courts throughout the country have consistently applied when considering independent contractor status; indeed, the IRS applies this basic test to the issue, and has done so for many years.

Yet, for some reason (which I cannot fathom), Pennsylvania courts completely ignore all of these principles when confronted with the issue in the context of temporary agencies and unemployment benefits.  In fact, the test applied by Pennsylvania courts where temporary agencies are concerned virtually ignores all of those factors, instead electing to focus on whether the temporary agency controls the manner and means of the employee's work - an inquiry the courts are well aware will most frequently result in a finding against the employee, since most temp agencies do nothing more than find people and send them to work for their clients.

A better test would be whether the CLIENT controls the manner and means of the employee's daily work life - but the courts know that application of that test would almost always result in a finding that the claimant is in fact an employee - because the management team on site of the employee's actual work place most assuredly controls the manner and means of their employment.

Or, at a minimum, the courts should at least fairly and honestly apply the traditional, time-honored "self-employment" test even if they intend to persist with analyzing the direction and control angle from the temp agency's perspective.

Alas, the courts have so far refused to do so (the Pennsylvania Supreme Court has yet to rule on this issue - I am waiting for the right client to come alonmg to take the matter up witht he Court). So, we have yet another a legal "fiction" designed to help companies at the expense of individual rights and interests. Shocking...

But, I suppose I digress (soap box can be so comfortable)....

Assuming you are a W-2 employee, or a 1099 controlled by the temp agency, then you would be entitled to unemployment benefits provided that, once the assignment ends, you are not offered suitable work.

THE SUITABLE WORK ISSUE

The "suitable work" conundrum often arises at the conclusion of the temporary assignment.  If an employee rejects a subsequent assignment that is comparable to his/her previous assignment, then benefits will be denied.  If, on the other hand, no suitable work is offered, the employee is entitled to unemployment even if he/she remains "an employee" of the temp agency (i.e. remains on their books as an employee).  This latter situation is analogous to a layoff situation for the ordinary worker.

This can be a tricky situation, since temporary employment agencies often try and make it difficult for people to claim unemployment by creating an impression that suitable work has been offered, even when it has not.  Please Click Here to read more about this critical issue.

More Questions about Pennsylvania Unemployment Law?  Click Here to read our answers to FAQs

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Temps and Pennsylvania Unemployment - Things to Know

Click Here to read about a common tactic of temporary employment agencies designed to prevent you from getting unemployment when your assignment ends.

John A. Gallagher, Pennsylvania Unemployment Lawyer

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UNEMPLOYMENT TELEPHONE HEARINGS IN PENNSYLVANIA - WHAT YOU NEED TO KNOW

As of June 17, 2011, either side (employer or employee) may, upon proper request, have the right to appear at an Unemployment Hearing via telephone for whatever reason.

However, the rules for Telephone Hearings are very precise, and tricky.

Here is the key thing to know:

If either side is granted permission to appear telephonically, then both sides must submit all documentary evidence they wish to present at the Hearing at least 5 days prior to the start of the Hearing.  If one fails to do so, one will be precluded at the Hearing from presenting any additional documentary evidence, no matter how crucial it may be.

This rule applies even if you intend to show up at the Hearing in person (i.e. the employer sought to appear by telephone but you did not).

This rule applies even if, despite your initial request to appear telephonically, you ultimately decide and do show up at the Hearing in person.  In other words, if you realize that you failed to submit documents in advance of the Hearing and figure you can "cure" the problem by showing up in person, you still will be precluded from presenting any additional documentary evidence at the Hearing.

There is good news and bad news about Telephone Hearings. 

Good News:  In substance, Telephone Hearings are most beneficial to people who understand the rules, and who can anticipate what the issue in the case will be.  The new rules mean that you will be able to see all of the documents that the employer intends to rely upon 5 days before the start of the Hearing.  You may then strategize accordingly.

Bad News:  On the other hand, if you do not know how the rules work, and cannot anticipate the employer's case, you can get smoked based upon the documentary evidence rule.  Here is an example:

You are at the Hearing and the employer surprises you by claiming that you were fired because you failed to complete a job on time.  You have an e-mail that shows you did complete the job on time, but you had not previously submitted that e-mail 5 days prior to the Hearing.  You will be precluded from introducing or even discussing that e-mail at the Hearing.

Since many employers rely upon testimony from HR personnel and managers (employers are notorious for electing not to document things they want to use against employees), the documentary evidence may not hurt them as much as it will employees, who must often "resort" to documentary evidence they have to rebut or disprove employer's testimonial evidence.

I believe that the bad news far outweighs the good where employees are concerned.  In fact....

TELEPHONE HEARINGS FAVOR COMPANIES IN SOME VERY SIGNIFICANT AREAS

First, the Telephone Hearing procedures favor those who have the greatest understanding of how unemployment hearings work.  That is almost always employers, who typically appear at many Hearings each year, and are often guided by their attorneys. Claimants, on the other hand, have little or no familiarity with how hearings work, and don't have a cadre of lawyers on retainer to help educate them.

Further, the absence of any obligation to travel to and from the Hearing site will mean that more employers will be contesting unemployment, and will likely have more witnesses at their side.  Click Here for more thoughts on these topics.

THE HEARING IS THE ONLY BITE AT THE APPLE YOU WILL GET, SO BE PREPARED

One other thing to keep in mind:  As we have posted on in the past, appeals from the decisions of Unemployment Referees are very limited, and one will not on appeal be allowed to introduce any evidence in aid of the appeal that was not introduced at the Referee Hearing.  So, no matter how valuable the documentary evidence is that you have but did not introduce at the Hearing, it will not be considered on any appeal to the Unemployment Compensation Board of Review.

WHY RETAINING AN ATTORNEY FOR A TELEPHONE HEARING IS MORE CRUCIAL NOW THAN EVER

I know, this sounds like a self-serving proclamation.  But, read on...

In sum and substance, I believe the Telephone Hearing rules make it more critical to retain an attorney than if the Hearing is to be attended by both parties in person.  Simply stated, an attorney that has been to hundreds of Hearings is in a better position to anticipate the critical issues and evidence than an employee going through the process for the first time.  Since employers are typically guided by counsel behind the scenes, and understand the rules of unemployment because they have been to many Hearings, the typical unrepresented claimant is at a real disadvantage at a Telephone Unemployment Hearing.

More questions about Pennsylvania Unemployment law?  Click Here to review our answers to your FAQs.

Hope this was helpful, John A. Gallagher, Esquire, Pennsylvania Unemployment Lawyer

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Understanding Pennsylvania's New Unemployment Law Enacted June 17, 2011

A copy of the new unemployment law, which became effective June 17, 2011, is attached Here.  Deletions from prior law are indicated by cross outs and new language is underlined.

As we posted on previously, the purported purpose of the amendment is to provide extended benefits to some 45,000 Pennsylvanians.  However, in our view, the cost of this extension is far too steep. 

Here is a synopsis of the most significant changes, at least from the employee's perspective (to the extent I can figure them out - talk about some confusing language!):

WHAT IS A CREDIT WEEK UNDER 2011 AMENDMENTS TO PENNSYLVANIA UNEMPLOYMENT LAW?

Credit weeks are are the baseline used to determine eligibility for unemployment compensation.  It used to be that one was credited with a credit week if during the week in question, one had earned at least $50.

Under the 2011 Amendment, a credit week is not earned unless one has earned at least $100.

WHAT IS THE MINIMUM AMOUNT OF UNEMPLOYMENT BENEFITS YOU CAN GET UNDER THE 2011 AMENDMENTS TO THE PENNSYLVANIA UNEMPLOYMENT ACT?

It used to be, there was no minimum.  It is now $70.  If the calculated weekly benefit rate for any individual is less than $70, he/she will not receive any unemployment benefits.

WHAT IS THE MAXIMUM NUMBER OF WEEKS FOR WHICH PA UNEMPLOYMENT WILL BE PAID?

26. 

SEVERANCE RULES UNDER NEW 2011 PENNSYLVANIA UNEMPLOYMENT LAW

Prior to the Amendment, the receipt of severance had no impact on one's right or ability to receive unemployment. 

This has changed.

Under the new law, one may receive up to $17,853 in severance without loss of any unemployment benefits.  However, any payments in excess of $17,853 will result in an offset.  Want a more comprehensive understanding of how the new law deals with severance payments?  Click Here to read our Blog Post of April 4, 2012.

NOTE:   The new severance provision does not become effective until January 1, 2012. So, if at any time prior to January 1, 2012 you have entered into a severance agreement, this amendment will not affect you (even if the agreement provides for severance payments after January 1, 2012).  However, if you enter into such agreement at any time after January 1, 2012, these changes will apply.

NEW TELEPHONE HEARING RULES IN 2011 PENNSYLVANIA UNEMPLOYMENT STATUTE

Previously, one could not get a telephone hearing before a Referee unless one could prove that one's residence or place of business was more than 60 miles from the hearing location.  Now, anyone can get a telephone hearing under any circumstance.  This sounds like a good thing, but it is a little trickier than one might expect. In fact, I believe this new rule is of far greater benefit to companies than it is to claimants. Click Here to learn more about telephone hearings.

SEARCH FOR WORK CRITERIA IN 2011 PENNSYLVANIA UNEMPLOYMENT LAW

This portion of the law has undergone dramatic change.  In short, one must, in order to establish and maintain a right to unemployment benefits:

1)  Register with CareerLink;
2)  post a resume on the UC database;
3)  apply for any jobs on the system's database located within a 45 minute commute from one's home;

The failure to do any of the above may result in loss of benefits.  I can see the "commuting" issue causing some problems.  How is someone in Erie (where many Service Center decisions are made), going to understand that what appears to be a 25 minute drive when taking into account mileage only (say from Oaks to Lansdale), is actually a 1.5 hour nightmare???  Don't believe me?  Try taking 422 East in the morning or 422 West in the evening.  5 Miles on that road during morning/rush hour traffic feels like the Bataan Death March.

In any event, I believe that these "job search requirements" will be used like a hammer to deprive many unemployed claimants of benefits - you should learn about these requirements, because I believe that one who fails to meet each and every job search requirement will be promptly disqualified from benefits. 

There is a lot more to analyze in these Amendments but, for now, that's a wrap.

Other questions about Pennsylvania Unemployment law?  Click Here to read our answers to your most common FAQs.

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The Temp Agency Hasn't Offered Me Another Assignment - Am I Eligible for PA Unemployment Compensation?

Click Here to read my post on this issue.

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My Job Was Elimated and They Offered Me Another Job - Do I Have to Take it or Can I Get Unemployment in Pennsylvania?

Click Here to read my post on this issue.

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My Temporaray Assignment Has Ended, Can I File for PA Unemployment Benefits

Click Here to read my post on this issue. 

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What is "Suitable Work" Under Pennsylvania Unemployment Law?

Click Here to read my post on this issue. 

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My Work Assignment Ended, So Why is my Employer Saying I Quit My Job?

IF I REFUSE A NEW JOB OR WORK ASSIGNMENT, CAN I STILL GET UNEMPLOYMENT BENEFITS IN PENNSYLVANIA?

The answer to the question that is the title to this Blog entry is as follows:  to deny you unemployment benefits.

Here are some scenarios:

*  You were hired by a temp agency to do complete an assignment.  When the assignment ended, you were not offered any additional work by the temp agency (or you were offered work that was not "suitable" - see discussion below).  However, temp agency claims it offered you work, and characterizes your refusal to accept (such alleged) work as proof that you quit your job.

NOTE:  Temporary employees often face some hurdles if they have worked as 1099 employees (independent contractors). Click Here to learn more.

*  You employer decides to eliminate your job but offers you another job either immediately prior to your last day of work or thereafter.  When you refuse the (alleged) job offer, it characterizes your conduct as a "voluntary quit."

Why do I keep saying "alleged"?  Well, it is my experience that employers rarely put these offers in writing, and rarely are willing to provide any detail as to the specifics of the offer.

Well, you ask, why don't they put these offers in writing? 

Call me paranoid, but my experience has been that employers in this situation really do not want to keep the employee employed.  Why?  I guess the most common reason is that the financial circumstances that led to the end of the job in the first place is the reason that employers want to "cut bait" with the employee in question. 

For those on temporary assignment, it's usually because a new assignment is not really available.

So, you ask, why aren't employers simply honest about what is going on?  Again, call me paranoid, but my experience is that they engage in this charade in order to avoid unemployment compensation obligations.

IS THIS A VOLUNTARY QUIT CASE OR A SUITABLE WORK CASE UNDER PENNSYLVANIA UNEMPLOYMENT LAW?

Well, employers want it to be a voluntary quit case, because it is very hard to prove that one has a "necessitous and compelling reason" to quit a job, so as to be qualified for unemployment benefits. 

However, to call these quit cases is usually plain wrong.  The fact is, these cases are correctly characterized as "suitable work" cases.  What does that mean?

If an employee has lost his/her job, then the employee must accept any offer of "suitable work" or else be disqualified from receiving unemployment.

In the scenarios described above, what has really happened is that the employee has lost his/her job.  Thus, the new job that is being offered is actually an offer of a new job, and must be accepted only if it is described in detail and is suitable.

WHAT IS SUITABLE WORK UNDER PENNSYLVANIA UNEMPLOYMENT LAW?

In general, it is a job that is in nearly all regards similar to your prior position with regard to pay rate, location, responsibilities, shift times, etc.  If you used to manage people, a job cleaning toilets is not suitable.  If you used to make $22 per hour, a job paying you $11 is not suitable.  If you used to work 40 hours per week, a job offering you 12 hours per week is not suitable.  If you used to work in Philadelphia, a job in Pittsburgh is not suitable. If you used to work the 7 a.m. to 3 p.m. shift, a job offer for the overnight shift is not suitable.

If you are facing a scenario such as described above, it is a good idea to require the employer to set forth the terms and conditions of the "new job" in writing.  Put your request for such specifics in writing, and send it to your contact at the company.  If things become further complicated (and they often will because employers who are trying to "get over" will refuse to put the alleged offers in writing), it may be a good idea to contact a qualified unemployment lawyer in your area to make sure that you have protected yourself so as to insure your entitlement to unemployment benefits.

Further, if you have an unemployment hearing coming up that involves a scenario such as described above, there are some rigid legal requirements for employers in such circumstances that a skilled unemployment lawyer can utilize to help you win your case!

More Pennsylvania Unemployment Compensation Questions?  Click Here to read our answers to your FAQs.



.

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Top Moneymaking Master's Degrees - and Those to Avoid

Advice for College 2011 Seniors

A recent article from GlassDoor.com offers some strategies and pearls of wisdom for college seniors. In essence, the article suggests networking.  Not particularly earth shattering advice, but there are some nice tips that may be more....acceptable to our children when given by a neutral, credible sources such as Glassdoor.

According to Forbes, in 2010 there were about 1.6 million graduating college seniors. It's probably safe to assume that there will be a similar number this coming May. We all know that jobs are scarce, so it is logical to assume that many college seniors will decide to pursue a Master's Degree. 

In the past, we have posted on the most valuable and least valuable college degrees (this post also included links to other interesting career-related articles, such as top retail jobs, top jobs for women, etc.). It stands to reason that, similarly, all Master's Degrees are not created equal.  So, we went scouting around and, lo and behold, Forbes.com has done some interesting analysis on the issue.

Best and Worst Master's Degrees - A Trend Emerges

An article posted a few months ago on Forbes.com discusses the best and worst out of 35 considered Master's degrees.  I have compared this article to one published last year by Forbes on the same topic (2010 was the first time that Forbes had performed analysis of Master's Degrees).
 
Forbes' analysis paradigm is, in my view, excellent.  It primarily takes into account current availability of jobs and earning potential, as deduced from a number of credible sources. 
 
Here is what I found.
 
In 2011, the most valuable Master's Degree was: Physician Assistant.  That was also true in 2010.  So, if you have an interest in medicine, and don't have the grades or finances to get into medical school, it is clear that a Physician Assistant Master's Degree is a great idea.
 
In second place in 2011? Computer Science. Again, this was also the case in 2010.
 
Least valuable Master's Degrees?  In 2011, Forbes opined that Master's in Music, Education and Social Work were unlikely to aid you in starting a career, and typically yield 1/2 of the long-term earning potential of many of their counterparts.  In 2010, Education and Social Work again ranked at the bottom of the heap.

Comparing the Value of Masters Degrees to That of Undergraduate Degrees

The Forbes study of Master's Degrees bears striking similarities to studies evaluating the value of various undergraduate degrees.
 
On such study we have discussed in the past, by an outfit called Capitalbay News, ranked the least "least valuable" and "most valuable" college degrees. It appears that their studies take only salary figures into account (in other words, they do not consider the availability of jobs in a given industry to determine degree value).   Nevertheless, when viewed side by side with the Forbes' Master's Degree study, certain trends are revealed.
 
In the undergraduate category, and without taking into account job availability, Elementary Education and Social Work were at the very bottom of the pile, and Music majors did not fare much better.  At the other end of the scale were degrees in Engineering and Computer Science.

Just to be sure on the rankings for best paying and worst paying college degrees, I looked at Time's rankings for undergrad degrees:

HIGHEST-EARNING MAJORS

• Mining and Mineral Engineering

• Metallurgical Engineering

• Mechanical Engineering

• Naval Architecture and Marine Engineering

• Electrical Engineering

• Chemical Engineering

• Aerospace Engineering

• Mathematics and Computer Sciences

• Pharmacy and Pharmaceutical Sciences and Administration

• Petroleum Engineering


LOWEST-EARNING MAJORS

• Health and Medical Preparatory Programs

• Visual and Performing Arts

• Communication-Disorders Sciences and Services

• Studio Arts

• Drama and Theater Arts

• Social Work

• Human Services and Community Organizations

• Theology and Religious Vocations

• Early-Childhood Education

• Counseling and Psychology

Seems largely consistent with the Capitalbay News findings.

CONCLUSIONS

*   Education and Social Work are very rewarding careers, and who doesn't love music.  Yet, despite intrinsic rewards, you aren't going to make much money with an undergraduate degree in those areas (assuming you can find a job in the first place) and getting a Master's won't help all that much.

*   With regard to the Physician's Assistant degree, it seems as though it is somewhat unique, because one does not need a degree in a "core major" in order to be accepted into a Master's program for such studies.  According to Forbes, any undergraduate major will do, provided one has at least some core science subjects under one's belt.  On the other hand, according to Time, it does not seem as though one with a degree in Health and Medical Preparatory Programs will have an easy time finding work in the Physician's Assistant field without a Master's Degree.

*   The Computer Science Master's Degree, on the other hand, may be a bit over the top (at least at first).  It appears that "computer science" is a core area in the USA, and that one can do well with only an undergraduate degree (perhaps thereafter attending a Master's program while gainfully employed).

*   In general, "hard science" degrees appear far more valuable than "social science" degrees.

Hope you found this information helpful, and very best of luck going forward.

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Inflation and Poor investing will double punch you...

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Inflation and poor investing will double punch you very badly...

 

Let's for a moment imagine you are leaving Rs 1 lac in your bank savings a/c @ 3.5%. Let's also assume inflation to be @ 12% during the time.

After one year, taking inflation into account, what do you think will be the true value of the money?

• It will be exactly @ 1 lac.


• It will be more than 1 lac.


• It will be less than 1 lac.

................

...................................

...................................................

If your answer is the third option, then you can pat yourself for that....

Am sure you would be curious to know what would be the true value of 1 lac after a year......And it's nothing to cheer about......

Rs 1 lac = Rs 91,000

Now you would agree inflation and poor investing will be a deadly double punch........

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

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US debt crisis... In a nutshell

http://www.youtube.com/watch?feature=player_embedded&v=Jjv-MtGpj2U#at=13

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Cost of indecision can be huge...

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

Cost of indecision can be huge..for your financial future.

When it comes to personal investment decisions, indecision takes over the process many a time... And the indecision is compounded by several factors like..


#1: Being extremely busy @ work:

 

Being busy @ work is a great thing, but that should not hamper the other priorities.

# 2: Not being able to spend time on personal priorities.

Remember, your decision or indecision can impact your family's financial future. So have a focus on personal priorities.



# 3: Act of procrastination:

You gain nothing but loose a lot on procrastinating; more so in your personal investing. So never procrastinate...

   
# 4: Lack of expert guidance:

It is indeed a very genuine reason for indecision @ times. The question of who to rely on, for sorting out your personal investment strategy.

 # 5: "I can do it myself" syndrome.  

It's practically a difficult task to perform, with our careers getting extremely demanding; internet as a source of information is good @ times and very bad most times. The amount of information download makes it very difficult to arrive @ conclusive decisions.

And many more factors contributing to indecisions...

The above listed factors lead to indecision @ most times, and the cost and impact of indecision can be felt in very many ways, but crucially it can be felt in...

• In securing, your and your family's financial future.


• In your over all returns. 

Inflation can play havoc if you remain indecisive:

Cost of premiums for health and life insurance, cost of children education, cost of retirement will be directly affected by rising inflation. If planned well, inflation can be tackled very effectively.


Power of compounding will help you, if you turn decisive:

Money is time, as demonstrated by Power of Compounding. If you allow money to grow over the time, the power of compounding rewards you with fabulous returns.

For eg., If one leaves Rs 1 lac in bank account for 20 years, he just gets Rs 2 lac in all, which is @ 3.5%. Alternatively, if he invests 1 lac @ 15% product, he gets close to Rs 17 lacs. In the first case, the investor is punished for his indecision by leaving it in a bank a/c. In the second case, the investor is rewarded by power of compounding for his intelligent investing.

Now, it's your choice to turn decisive or not....... 

Rely on the experts from Money Avenues to be more decisive on your personal investing.
 
 

 (The author is the Founder and CEO of Money Avenues, a Wealth Management firm based in Chennai. Feedback can be sent to mailfpc@ yahoo.com)

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