THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY REICHLEY, BOYD, EVERETT, FRANKEL, GEIST, GRELL, GROVE, HARHART, HICKERNELL, KOTIK, McGEEHAN, MOUL, MURT, O'NEILL, WATERS AND GINGRICH, DECEMBER 8, 2009

REFERRED TO COMMITTEE ON LABOR RELATIONS, DECEMBER 8, 2009  

AN ACT

Amending the act of December 5, 1936 (2nd Sp.Sess., 1937

P.L.2897, No.1), entitled "An act establishing a system of

unemployment compensation to be administered by the

Department of Labor and Industry and its existing and newly

created agencies with personnel (with certain exceptions)

selected on a civil service basis; requiring employers to

keep records and make reports, and certain employers to pay

contributions based on payrolls to provide moneys for the

payment of compensation to certain unemployed persons;

providing procedure and administrative details for the

determination, payment and collection of such contributions

and the payment of such compensation; providing for

cooperation with the Federal Government and its agencies;

creating certain special funds in the custody of the State

Treasurer; and prescribing penalties," providing for a shared

work program.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The act of December 5, 1936 (2nd Sp.Sess., 1937

P.L.2897, No.1), known as the Unemployment Compensation Law, is

amended by adding an article to read:

ARTICLE XIII

SHARED WORK PROGRAM

Section 1301.  Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Affected unit."  A specified department, shift or other unit

of two or more employees that is designated by an employer to

participate in a shared work plan.

"Approved plan."  An employer's shared work plan which meets

the requirements of section 1304 and which the department

approves in writing.

"Employer."  The term includes all public and private

employers, whether contributing or reimbursing.

"Fringe benefit."  Health insurance, a retirement benefit

received under a pension plan, a paid vacation day, a paid

holiday, sick leave and any other similar employee benefit

provided by an employer.

"Full-time hours."  The normal full-time hours of the

employer but not less than 35 hours and not more than 40 hours

per week. The term does not include overtime as defined in the

Fair Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. § 201 

et seq.).

"Participating employee."  An employee who works a reduced

number of hours under a shared work plan.

"Participating employer."  An employer who has a shared work

plan in effect.

"Shared work benefit."  An unemployment compensation benefit

which is payable to a participating employee.

"Shared work plan."  A plan for reducing unemployment under

which participating employees who are members of an affected

unit share the work remaining after reduction in their normal

weekly hours of work.

"Shared work program."  A program designed to reduce

unemployment and stabilize the work force by allowing certain

employees to collect a pro rata portion of unemployment

compensation benefits if the employees share the work remaining

after a reduction in the total number of hours of work and a

corresponding reduction in wages.

Section 1302.  Establishment of program.

The department shall establish a voluntary shared work

program as provided by this article. The department may

promulgate regulations and establish procedures necessary to

administer this program.

Section 1303.  Application for shared work.

An employer seeking to participate in the shared work program

must submit a written shared work plan application to the

department for the department's approval. The application must

be made according to forms and procedures as the department may

specify and must include information required by the department.

Section 1304.  Evaluation of criteria.

The department shall approve a shared work plan if all of the

following are met:

(1)  The shared work plan applies to and identifies a

specific affected unit.

(2)  The employees in the affected unit are identified by

name and Social Security number and the employer certifies

that each employee in the affected unit would be eligible for

normal unemployment compensation under Article IV.

(3)  The shared work plan reduces the normal weekly hours

of work for an employee in the affected unit by not less than

20% and not more than 60%.

(4)  The shared work plan describes the manner in which

the participating employer treats the fringe benefits of each

employee in the affected unit.

(5)  The employer certifies that the implementation of a

shared work plan is in lieu of temporary layoffs that would

affect at least 10% of the employees in the affected unit and

would result in an equivalent reduction in work hours.

(6)  The employer has filed all reports required to be

filed under this article for all past and current periods and

has paid all contributions or reimbursements due for all past

and current periods.

(7)  The plan is approved in writing by the collective

bargaining agent for each collective bargaining agreement

covering any individual in the affected unit.

(8)  The plan does not serve as a subsidy to seasonal

employers during the off-season or as a subsidy to employers

who traditionally use part-time employees.

(9)  The plan specifies an expiration date which is not

more than six months after the effective date of the shared

work plan.

(10)  The employer is a contributing employer as defined

in Article III or has elected to make reimbursement payments

as defined in Articles X, XI and XII.

(11)  The employer agrees to furnish the department with

reports relating to the operation of its shared work plan as

requested by the department.

Section 1305.  Approval or denial of shared work plan.

The department shall approve or deny a shared work plan no

later than the 15th day after the day the shared work plan

application is received by the department. The department shall

approve or deny a shared work plan in writing and shall, in

instances where an application is denied, include the reasons

for the denial. When the department denies a shared work plan,

the decision is final and may not be appealed. Following a

denial, an employer may submit a new shared work plan

application after a 15-day period following the denial.

Section 1306.  Implementation and expiration dates.

A shared work plan is effective on the date it is approved by

the department. The shared work plan expires six months after

the effective date of the shared work plan.

Section 1307.  Modification of plan.

(a)  General rule.--An employer may modify a shared work plan

to meet changed conditions if the modification conforms to the

basic provisions of the shared work plan as approved by the

department. The employer must report the changes made to the

shared work plan in writing to the department before

implementing the changes.

(b)  Reevaluation by secretary.--If the original shared work

plan is substantially modified, the secretary shall reevaluate

the shared work plan and may approve the modified shared work

plan if it meets requirements for approval under section 1304.

If the modifications cause the shared work plan to fail to meet

the requirements for approval, the secretary shall deny approval

to the modifications.

(c)  Approval of modified plan.--The approval of a modified

shared work plan does not affect the expiration date originally

set for that shared work plan.

Section 1308.  Termination of plan.

The secretary may terminate a shared work plan for good cause

if the secretary determines that the shared work plan is not

being executed according to the terms and intent of the shared

work program. Good cause shall include, failure to comply with

the assurances given in the shared work plan, unreasonable

revision of productivity standards for the affected group,

conduct or occurrences tending to defeat the intent and

effective operation of the shared work plan and violation of any

criteria on which approval of the shared work plan was based.

Section 1309.  Employee criteria for shared work benefits.

(a)  Eligibility criteria.--An individual is considered to be

unemployed for the purpose of the shared work program and is

eligible to receive shared work benefits with respect to any

week in which the department finds that:

(1)  The individual is a participating employee in an

affected unit subject to a shared work plan which was

approved before the week in question and is in effect for

that week.

(2)  The individual is able to work and is available for

additional hours of work or full-time work with the

participating employer.

(3)  The individual's normal weekly hours of work have

been reduced by at least 20% but not more than 60%, with a

corresponding reduction in wages.

(4)  The individual has been continuously on the payroll

of an affected unit for at least three months immediately

before the employer submits a shared work plan for the

affected unit.

(b)  Denial of benefits.--The department shall not deny

benefits under a shared work plan to a participating employee

based on availability for work or work search requirements or

for a refusal to apply for or to accept work with an employer

other than the participating employer as required under Article

IV. An individual eligible for shared work benefits shall not be

subject to the provisions of Article IV relating to partial

unemployment benefits.

(c)  Work in excess of reduced hours.--The department shall

not pay shared work benefits to an individual for any week in

which the individual performs work for the participating

employer in excess of the reduced hours established under the

shared work plan unless there is a corresponding modification to

the plan under section 1307.

(d)  Prior overpayments.--If an individual who is eligible to

receive shared work benefits has a prior overpayment which is

still outstanding, the department shall offset the overpayment

from shared work benefits in accordance with Article VIII.

(e)  Child support obligation.--If an individual who is

eligible to receive shared work benefits has been identified as

having outstanding child support obligations, the department

shall reduce the shared work benefits as provided in Article

VII.

Section 1310.  Payment of shared work benefits.

(a)  General rule.--The department shall pay an individual

who is eligible for shared work benefits under this article a

weekly shared work benefit amount equal to the individual's

regular weekly benefit amount for a period of total unemployment

multiplied by the nearest full percentage of reduction of the

individual's hours as set forth in the employer's shared work

plan.

(b)  Maximum total benefits.--In no event may total benefits

paid in any benefit year, either under Article IV or this

article, or both, exceed the maximum amount for which a claimant

would be eligible under Article IV.

(c)  Period of eligibility.--An individual shall not be

eligible to receive shared work benefits for more than 26

calendar weeks during the 12-month period of the shared work

plan.

(d)  Dependency allowance.--An individual who is eligible for

shared work benefits shall not be eligible to receive a

dependency allowance.

(e)  Extended benefits.--An individual who has received all

of the shared work benefits and regular unemployment

compensation benefits available in a benefit year is an

exhaustee for purposes of Article IV-A and is entitled to

receive extended benefits under Article IV-A if the individual

is otherwise eligible for those benefits.

(f)  Ineligibility for other benefits.--When an affected

employee applies for or receives shared work benefits, the

affected employee is not eligible for:

(1)  extended benefits;

(2)  supplemental Federal unemployment compensation;

(3)  benefits under any other Federal or State program;

or

(4)  partial unemployment benefits as provided under

Article IV.

(g)  Unemployment Compensation Fund.--All shared work

benefits under this article shall be payable from the

Unemployment Compensation Fund under Article VI.

Section 1311.  Allocation of shared work benefit charges.

Shared work unemployment compensation shall be charged to the

employer's experience rated account in the same manner as

unemployment compensation is charged under Article III.

Employers liable for reimbursements in lieu of contributions

shall have shared work unemployment compensation attributed to

service in their employ in the same manner as unemployment

compensation is attributed.

Section 2.  This act shall take effect in 60 days.