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Lauren Zeb

PA UC denied me for 'non-fraud disqualification' after 10 weeks of waiting - what does this mean?

I'm at my wit's end trying to figure this out. After filing for regular PA unemployment in January and waiting for over 10 weeks with literally zero income, I just got a determination letter saying I have a 'non-fraud disqualification.' They didn't explain what that even means! I worked full-time at the same restaurant for 3 years before they cut my hours to basically nothing (like 4 hours a week). I thought I qualified for benefits since my hours were reduced. I've never applied for unemployment before, so I don't understand why I'm being denied or what 'non-fraud' means. Has anyone else dealt with this? Do I need to appeal? The bill collectors are calling daily and I'm about to lose my apartment.

Non-fraud' disqualification means'they ve determined you'don t qualify for benefits, but they'don t think you were trying to commit fraud. Common reasons include: not having enough base year wages, quitting without cause, being fired for willful misconduct, or not being able/available for work. Check your determination letter carefully - it should list a specific section of the PA UC law'they re (citing like Section(402) b or something)similar . That will tell you exactly why they denied you. You absolutely have the right to appeal within 15 days of the determination date, so'don tdelay!

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Lauren Zeb

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Thank you! I found it - says Section 402(h). Something about self-employment? But that makes no sense, I've never been self-employed. I was a W-2 employee the whole time! Should I definitely appeal this?

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same thing happened to me lol. turned out they mixed up my paperwork with someone else's. definitely appeal it!!

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Lauren Zeb

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OMG really? Did you have to do anything special for your appeal? I've never done anything like this before.

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just filled out the appeal form and explained i never owned a business. took like 10 mins. they fixed it eventually

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Anthony Young

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Section 402(h) is the self-employment disqualification. This is actually a common error when restaurant workers receive tips. If you reported your tips on your taxes (which you should), sometimes the UC system misinterprets this as self-employment income rather than as part of your W-2 wages. You need to appeal and clearly explain you were a W-2 employee receiving tips as part of your compensation, not a self-employed individual. Bring copies of your W-2, pay stubs showing your tips were processed through your employer, and any tax documents that show your proper employment status. You have 15 calendar days from the date on the determination notice to file your appeal.

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Lauren Zeb

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That makes so much sense now! Yes, I earned tips and claimed them on my taxes. I can't believe they'd deny me for doing the right thing and reporting my income properly. I'll definitely appeal. Will I have to go to a hearing or something?

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They did the exsact same thing to me but mine was a 401(d) or something? Took 4 MONTHS to get resolved the PA UC is just terrible terrible terrible. no 1 answers phones no explanations just a letter that makes no sense. it's like they WANT us to give up and go away

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Anthony Young

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You're thinking of 402(d), which is a labor dispute disqualification. Different issue than what OP is experiencing with the self-employment confusion. But you're right that getting through to someone at UC is incredibly difficult these days.

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Admin_Masters

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You'll definitely need to appeal this. After filing your appeal, you'll need to attend a hearing with a referee who will make a new decision on your case. Make sure you gather all your evidence beforehand - pay stubs, W2s, anything that proves you were an employee and not self-employed. I was in a similar situation and couldn't get anyone on the phone for weeks. I finally used Claimyr (claimyr.com) to connect with a UC representative. They got me through to someone in about 20 minutes when I'd been trying for weeks on my own. They have a video that shows how it works: https://youtu.be/CEPETxZdo9E?si=WL1ZzVZWG3KiHrg2 The rep explained exactly what I needed for my hearing and it made a huge difference. My appeal was approved and I got all my back payments.

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Lauren Zeb

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Thank you! I'll check out that service because I've been calling constantly with no luck. Did you have to wait a long time for your hearing after you filed the appeal?

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Admin_Masters

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My hearing was scheduled about 3 weeks after I filed the appeal. Make sure you continue filing your weekly claims while waiting for the appeal decision! If you win, they'll pay you for all those weeks, but only if you kept filing.

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My cousin worked at Applebees and they did this to him to. Something about the tips making him "self employed" which is RIDICULOUS!!! He had to do the appeal thing and it took forEVER but he got his money eventually. Like 3 months later tho.

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Lauren Zeb

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3 months??? I can't wait that long! I'm already behind on everything. Did he get paid for all the back weeks once it was approved?

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Ella Thompson

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i think your talking about regular UC not PUA? PUA ended in 2021... UC and PUA are totally different programs. PUA was for the pandemic only

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Lauren Zeb

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Yes, sorry for the confusion! I meant regular UC. I've never applied before so I'm learning all these terms as I go.

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Just to follow up on this thread - appeals are usually successful in cases like yours. About 75% of self-employment disqualification appeals are overturned when the person was actually a W-2 employee with tips. Make sure you have these documents for your hearing: 1. Your W-2 from the restaurant 2. Recent pay stubs showing your reduced hours 3. A letter from your employer confirming your employment status (if possible) 4. Any documentation showing that tips were processed through your employer If you haven't already, check your UCMS dashboard for the appeal form, or call the UC service center to request the appeal form be mailed to you.

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Lauren Zeb

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This is incredibly helpful, thank you! I'm going to gather all these documents today and file the appeal online. I'll keep filing my weekly claims too. Fingers crossed this gets resolved soon.

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CosmicCowboy

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Hey Lauren, I went through almost the exact same thing last year! Got denied for Section 402(h) even though I was clearly a W-2 employee at a local diner. The problem is PA's system automatically flags anyone with significant tip income as potentially self-employed. Here's what worked for me: when you file your appeal, be very specific that you were an employee receiving tips as part of your wages, not operating as an independent contractor. I also included a copy of my employee handbook that showed the tip reporting policy. The hearing referee was actually really understanding once I explained the situation clearly. One tip - if you have any old schedules or time clock records, bring those too. They help prove you were working set shifts as an employee rather than coming and going as you please like a contractor would. Good luck with your appeal!

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This is so reassuring to hear from someone who went through the same thing! I never thought about including my employee handbook - that's a great idea. I definitely have some old schedules saved on my phone from when they started cutting my hours. It's crazy that the system automatically flags tip workers like this. Did your hearing happen over the phone or did you have to go somewhere in person?

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Connor Byrne

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Mine was over the phone, which was actually really convenient! They called me at the scheduled time and it lasted about 20 minutes. The referee asked basic questions about my job duties, how tips were handled, and whether I had any control over my work schedule. Having those old schedules really helped prove I was scheduled by management rather than setting my own hours. The whole process was way less intimidating than I expected. You've got this!

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