The Pennsylvania Chamber of Business and Industry and other statewide business groups are fighting to maintain a recently enacted law allowing businesses to use non-attorneys in unemployment compensation hearings.

Act 5 of 2005, signed into law in June by Gov. Edward G. Rendell, was enacted after the Commonwealth Court ruled in Harkness v. Unemployment Compensation Board of Review, 867 A.2d 728 (Pa. Commw. 2005), that businesses must be represented by attorneys in UC cases. Many smaller businesses use non-attorney agents to represent them in such cases to save time and money.

Four Philadelphia area attorneys have challenged the constitutionality of that law in Commonwealth Court, arguing that the state Supreme Court, and not the General Assembly, has jurisdiction over the conduct and practices of attorneys.

The Chamber of Business and Industry has also filed an amicus brief in an appeal of the Harkness case, urging the Supreme Court to overturn the February Commonwealth Court decision.

"Even though Act 5 is still on the books, it doesn't hold for UC cases originating before the June signing date of the law," said Brian Kelly, director of government affairs for the chamber. "We want to make sure that all cases are in the clear."

The Pennsylvania Department of Labor and Industry is challenging the Harkness ruling, noting that its primary concern was that the decision was unfair to both claimants and employers, and that it may potentially clog the system, delaying cases and undoing substantial recent progress toward streamlining and simplifying the process.

"Prolonging the time required to complete UC cases delays the process of getting benefits into the hands of deserving claimants and hinders L&I's ability to meet federal guidelines for completing cases," the department stated in a release.

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