The Pennsylvania Supreme Court held that the Unemployment Compensation Board of Review erred when it concluded sua sponte that the claimant was ineligible for unemployment benefits. Before the referee, the issue was whether the claimant’s income from her side hustle was deductible from unemployment compensation after being laid off from her primary job. The Board reversed the referee’s decision and held that the claimant was ineligible for benefits because she conceded she owned and operated an independent business but failed to present evidence that she fit into the sideline activity exception. The issue of eligibility, though, had never been raised on appeal to the Board. The Supreme Court held that the Board denied the claimant an opportunity to be heard because the Board reversed the referee’s decision but did so without a hearing. And the Board was not authorized by statute or regulation to rule on an issue that was not raised by either party.
