PRIOR PRINTER'S NO. 1954                      PRINTER'S NO. 3572

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1598 Session of 1987


        INTRODUCED BY BELFANTI, COHEN, MORRIS, KOSINSKI, KUKOVICH,
           LEVDANSKY, JOSEPHS, PISTELLA, MICHLOVIC, VEON, TRUMAN,
           PETRARCA AND ITKIN, JUNE 23, 1987

        AS REPORTED FROM COMMITTEE ON LABOR RELATIONS, HOUSE OF
           REPRESENTATIVES, AS AMENDED, JUNE 28, 1988

                                     AN ACT

     1  Amending the act of July 14, 1961 (P.L.637, No.329), entitled
     2     "An act relating to the payment of wages or compensation for
     3     labor or services; providing for regular pay days; conferring
     4     powers and duties upon the Department of Labor and Industry,
     5     including powers and duties with respect to the civil
     6     collection of wages; providing civil and criminal penalties
     7     for violations of the act; providing for their collection and
     8     disposition and providing for additional civil damages,"
     9     further providing for regular payday and enforcement; and
    10     imposing a duty on successor employers to pay back wages.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 3(a) of the act of July 14, 1961
    14  (P.L.637, No.329), known as the Wage Payment and Collection Law,
    15  amended July 14, 1977 (P.L.82, No.30), is amended to read:
    16     Section 3.  Regular Payday.--(a)  Wages other than fringe
    17  benefits and wage supplements. Every employer shall pay all
    18  wages, other than fringe benefits and wage supplements, due to
    19  his employes on regular paydays designated in advance by the
    20  employer. Overtime wages may be considered as wages earned and
    21  payable in the next succeeding pay period. All wages, other than

     1  fringe benefits and wage supplements, earned in any pay period
     2  shall be due and payable within [the number of days after the
     3  expiration of said pay period as provided in a written contract
     4  of employment or, if not so specified, within the standard time
     5  lapse customary in the trade or within 15] seven EIGHT days from  <--
     6  the end of such pay period. The wages shall be paid in lawful
     7  money of the United States or check, except that deductions
     8  provided by law, or as authorized by regulation of the
     9  Department of Labor and Industry for the convenience of the
    10  employe, may be made including deductions of contributions to
    11  employe benefit plans which are subject to the Employee
    12  Retirement Income Security Act of 1974, 29 U.S.C. § 1001 et seq.
    13     * * *
    14     Section 2.  The act is amended by adding a section to read:
    15     Section 6.1.  Successor Employer's Duty to Pay Back Wages.--A
    16  successor employer shall be responsible financially, upon the
    17  sale of the company, for back wages due to employes of the
    18  previous employer. These wages may be paid in installments.
    19     Section 3.  Section 8 of the act, amended July 14, 1977        <--
    20  (P.L.82, No.30), is amended to read:
    21     Section 8.  Enforcement.--(a)  The Secretary of Labor and
    22  Industry shall have the duty, but not the exclusive right, to
    23  enforce and administer the provisions of this act, to
    24  investigate any alleged violations of this act and to institute
    25  prosecutions and actions as provided hereunder. Nothing in this
    26  act shall authorize the secretary to initiate a civil action for
    27  unpaid wages which are subject to disposition under grievance
    28  and arbitration procedures of a collective bargaining agreement.
    29     (b)  The Department of Labor and Industry shall have the
    30  power to make rules and regulations for the administration of
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     1  this act.
     2     (c)  Every employer shall keep open to inspection by the
     3  secretary or his authorized representative, all payroll records
     4  or other records or documents relative to the enforcement of
     5  this act. Such inspection may be made by the secretary or his
     6  authorized representative at any reasonable time. Every employer
     7  shall permit the secretary or any authorized representative to
     8  interrogate any employe in the place of employment and during
     9  work hours with respect to such records or documents. Where such
    10  records are maintained at a central record keeping office
    11  outside of the Commonwealth, such records shall be made
    12  available for inspection at the place of employment within seven
    13  calendar days following verbal or written notice from the
    14  secretary or his authorized representative. Where a microfilm or
    15  any other method is authorized for record keeping purposes, the
    16  employer shall make available to the secretary or his authorized
    17  representative, the equipment which is necessary to facilitate
    18  review of the records.
    19     (d)  The department may require a company which has filed a
    20  bankruptcy petition under Chapter 11 of the Federal Bankruptcy
    21  Code (11 U.S.C. § 1101 et seq.) to file a bond or other
    22  assurance relating to the payment of wages of salaried and
    23  nonsalaried employes of the company. The department shall
    24  monitor payments or wages by a company which has filed a Chapter
    25  11 petition.
    26     Section 4 3.  This act shall take effect in 60 days.           <--



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