HOUSE AMENDED

 

PRIOR PRINTER'S NOS. 1133, 1189, 1239

PRINTER'S NO.  1293

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

1030

Session of

2011

  

  

INTRODUCED BY GORDNER, APRIL 28, 2011

  

  

AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 7, 2011   

  

  

  

AN ACT

  

1

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

2

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

3

unemployment compensation to be administered by the

4

Department of Labor and Industry and its existing and newly

5

created agencies with personnel (with certain exceptions)

6

selected on a civil service basis; requiring employers to

7

keep records and make reports, and certain employers to pay

8

contributions based on payrolls to provide moneys for the

9

payment of compensation to certain unemployed persons;

10

providing procedure and administrative details for the

11

determination, payment and collection of such contributions

12

and the payment of such compensation; providing for

13

cooperation with the Federal Government and its agencies;

14

creating certain special funds in the custody of the State

15

Treasurer; and prescribing penalties," further providing for 

16

definitions and for relief from charges and for establishment

<--

17

and maintenance of employer's reserve accounts; providing for

18

automatic relief from charges; further providing for

19

qualifications required to secure compensation, for

<--

20

ineligibility for compensation, for rate and amount of

21

compensation, for definitions and for rules of procedure; and

22

providing for shared-work program and for applicability.

23

The General Assembly of the Commonwealth of Pennsylvania

24

hereby enacts as follows:

25

Section 1.  Section 213 of the act of December 5, 1936 (2nd

<--

26

Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment

27

Compensation Law, added December 9, 2002 (P.L.1330, No.156), is

 


1

amended to read:

2

Section 1.  Section 4(g.1) of the act of December 5, 1936

<--

3

(2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment

4

Compensation Law, added July 10, 1980 (P.L.521, No.108), is

5

amended to read:

6

Section 4.  Definitions.--The following words and phrases, as

7

used in this act, shall have the following meanings, unless the

8

context clearly requires otherwise.

9

* * *

10

(g.1)  "Credit week" means any calendar week in an

11

individual's base year with respect to which he was paid in

12

employment as defined in this act, remuneration of not less than

13

[fifty dollars ($50)] sixteen (16) times the minimum hourly wage

14

required by the act of January 17, 1968 (P.L.11, No.5), known as

15

The Minimum Wage Act of 1968. Only one credit week can be

16

established with respect to any one calendar week.

17

* * *

18

Section 1.1.  Section 213 of the act, added December 9, 2002

19

(P.L.1330, No.156), is amended to read:

20

Section 213.  Relief from Charges for Certain Employers.--(a)

21

An employer that makes payments in lieu of contributions

22

pursuant to Article X, XI or XII shall be relieved of charges in

23

accordance with section [302(a)] 302.1 and regulations of the

24

department, for compensation paid on applications for benefits

25

effective during a calendar year, if the employer satisfies the

26

following requirements:

27

(1)  The employer pays a nonrefundable solvency fee under

28

subsection (b) for the calendar year within thirty (30) days

29

after notice of the fee is sent to the employer's last known

30

address. The department may for good cause extend the period

- 2 -

 


1

within which the fee must be paid.

2

(2)  All reports required by this act and regulations of the

3

department for calendar quarters through the second calendar

4

quarter of the preceding calendar year are filed.

5

(b)  An employer's solvency fee for a calendar year shall be

6

the monetary amount determined by multiplying the solvency fee

7

rate for the year by the amount of wages paid, without regard to

8

the exclusion in section 4(x)(1), by the employer in the four

9

consecutive calendar quarters ending on June 30 of the preceding

10

calendar year, provided that an employer's solvency fee for a

11

year shall not be less than twenty-five dollars ($25).

12

(1)  For calendar years 2003, 2004 and 2005, the solvency fee

13

rate shall be three ten thousandths (.0003).

14

(2)  In 2005 the secretary shall redetermine the solvency fee

15

rate. The secretary shall redetermine the rate so that the

16

unrounded rate yields solvency fees approximately equal to the

17

amount of compensation for which charges are relieved under this

18

section. For purposes of redetermining the rate, the secretary

19

shall use the amount of compensation for which charges are

20

relieved under this section paid during 2003 and 2004 and the

21

amount of wages paid, without regard to the exclusion in section

22

4(x)(1), during the same time period by employers who paid a

23

solvency fee under this section. The rate as redetermined shall

24

take effect for the next calendar year and shall remain in

25

effect for three years.

26

(3)  Beginning in 2008 and each fifth year thereafter, the

27

secretary shall redetermine the solvency fee rate. The secretary

28

shall redetermine the rate so that the unrounded rate yields

29

solvency fees approximately equal to the amount of compensation

30

for which charges are relieved under this section. For purposes

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1

of redetermining the rate, the secretary shall use the amount of

2

compensation for which charges are relieved under this section

3

paid during the five calendar years immediately preceding the

4

year in which the redetermination occurs and the amount of wages

5

paid, without regard to the exclusion in section 4(x)(1), during

6

the same time period by employers who paid a solvency fee under

7

this section. The rate as redetermined shall take effect for the

8

next calendar year and shall remain in effect for five years.

9

(4)  If the solvency fee rate redetermined under paragraphs

10

(2) and (3) is not a multiple of one-hundredth of one per cent,

11

it shall be rounded to the next higher multiple of one-hundredth

12

of one per cent.

13

(c)  Solvency fees paid by employers under this section shall

14

be deposited in the Unemployment Compensation Fund. Compensation

15

for which charges are relieved under this section shall not be

16

used in the calculation of the State adjustment factor under

17

section 301.1(e).

18

(d)  The provisions of this section shall constitute the

19

exclusive means by which an employer who makes payments in lieu

20

of contributions pursuant to Article X, XI or XII may be excused

21

from reimbursing the Unemployment Compensation Fund for

22

compensation paid to an individual that is based on wages paid

23

by the employer or that portion of the individual's compensation

24

determined in accordance with section 1108.

25

(e)  A group account under section 1109 shall constitute an

26

employer for purposes of this section.

27

Section 2.  Section 302 of the act, amended March 24, 1964

28

(Sp.Sess., P.L.53, No.1), July 6, 1977 (P.L.41, No.22), July 21,

29

1983 (P.L.68, No.30), December 19, 1996 (P.L.1476, No.189) and

30

December 9, 2002 (P.L.1330, No.156), is amended to read:

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1

Section 302.  Establishment and Maintenance of Employer's

2

Reserve Accounts.--The department shall establish and maintain

3

for each employer a separate employer's reserve account in the

4

following manner:

5

(a)  [(1)  Such account shall be credited with all

6

contributions paid by such employer for periods subsequent to

7

June thirtieth, one thousand nine hundred forty-eight. Such

8

account shall be charged with an amount determined by

9

multiplying the wages of compensated employes of such employer

10

for the twelve month period ended June thirtieth, one thousand

11

nine hundred forty-nine, by the state experience heretofore used

12

in determining rates of contributions for the year one thousand

13

nine hundred forty-nine. Subsequent to January 1, 1984, such] An

14

employer's account shall be charged with all compensation,

15

including dependents' allowances, paid to each individual who

16

received from such employer wage credits constituting the base

17

of such compensation, in the proportion that such wage credits

18

with such employer bears to the total wage credits received by

19

such individual from all employers[: Provided, That if the

20

department finds that such individual was separated from his

21

most recent work for such employer due to being discharged for

22

willful misconduct connected with such work, or due to his

23

leaving such work without good cause attributable to his

24

employment, or due to his being separated from such work under

25

conditions which would result in disqualification for benefits

26

under the provisions of section 3 or section 402(e.1),

27

thereafter no compensation paid to such individual with respect

28

to any week of unemployment occurring subsequent to such

29

separation, which is based upon wages paid by such employer with

30

respect to employment prior to such separation, shall be charged

- 5 -

 


1

to such employer's account under the provisions of this

2

subsection (a); provided, such employer has filed a notice with

3

the department in accordance with its rules and regulations and

4

within the time limits prescribed therein; and provided if the

5

department finds that such individual's unemployment is directly

6

caused by a major natural disaster declared by the President

7

pursuant to section 102(1) of the Disaster Relief Act of 1970

8

(P.L.91-606) and such individual would have been eligible for

9

disaster unemployment assistance as provided in section 240 of

10

that act with respect to such unemployment but for the receipt

11

of unemployment compensation, no compensation paid to such

12

individual with respect to any week of unemployment occurring

13

due to such natural disaster, to a maximum of the eight weeks

14

immediately following the President's declaration of emergency,

15

shall be charged to the employer's account under the provisions

16

of this subsection.

17

(2)  Notwithstanding the provisions of paragraph (1) of this

18

subsection, if the department finds that an individual

19

subsequent to separation from his work is engaged in part-time

20

work for a base year employer, other than a base year employer

21

from whom he has separated, compensation paid to such individual

22

with respect to any week of unemployment occurring subsequent to

23

such separation and while such part-time work continues without

24

material change, shall not be charged to the account of such

25

part-time employer; provided, such part-time employer has filed

26

a notice with the department in accordance with its rules and

27

regulations and within the time limits prescribed therein.

28

(2.1)  Notwithstanding the provisions of paragraph (1) of

29

this subsection, if the department finds that an individual was

30

separated from his most recent work for such employer due to a

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1

cessation of business of eighteen months or less caused by a

2

disaster, compensation paid to such individual with respect to

3

any week of unemployment occurring subsequent to such separation

4

shall not be charged to the account of such employer; provided,

5

such employer has filed a notice with the department in

6

accordance with its rules and regulations and within the time

7

limits prescribed therein.

8

(3)  The findings and determinations of the department under

9

this subsection (a) shall be subject to appeal in the manner

10

provided in this act for appeals from determinations of

11

compensation: Provided, That where the individual's eligibility

12

for compensation has been finally determined under the

13

provisions of Article V of this act, such determination shall

14

not be subject to attack in proceedings under this section.

15

(4)  The reserve account of any employer who pays

16

contributions under this section shall not be charged with

17

respect to benefits paid to any individual whose base period

18

wages include wages for previously uncovered services as defined

19

in section 401(g) to the extent that the unemployment insurance

20

fund is reimbursed for such benefits pursuant to section 121 of

21

Public Law 94-566].

22

(b)  Any employer, at any time, may voluntarily pay into the

23

Unemployment Compensation Fund an amount in excess of the

24

contributions required to be paid under the provisions of this

25

act, and such amount shall be forthwith credited to his reserve

26

account. His rate of contribution shall be computed or

27

recomputed, as the case may be, with such amount included in the

28

calculation. To affect such employer's rate of contribution for

29

any year, such amount shall be paid not later than thirty days

30

following the mailing of notice of his rate of contribution for

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1

such year: Provided, That for good cause, such time may be

2

extended by the department: And provided further, That such

3

amount, when paid as aforesaid, shall not be refunded or used as

4

a credit in the payment of contributions in whole or in part. In

5

no event shall any such amount be included in the computation or

6

recomputation for any year unless it is paid within one hundred

7

twenty days after the beginning of such year.

8

(c)  (1)  For the purpose of determining any employer's rate

9

of contribution for any year, the phrase "balance in an

10

employer's reserve account" as used in sections 301, 301.1 and

11

301.2 of this act shall mean the amount ascertained as of the

12

computation date by subtracting the amounts charged to his

13

reserve account from the amounts credited thereto including

14

voluntary contributions. If, as of the computation date, the

15

amounts charged to his reserve account exceed the amounts

16

credited by an amount equivalent to more than twenty per centum

17

(20%) of his average annual payroll, the employer may elect,

18

subject to the provisions of section 301.1(f) of this act to

19

have his reserve account balance adjusted to a negative balance

20

equal to twenty per centum (20%) of his average annual payroll.

21

This subsection as amended shall apply to elections made after

22

December 31, 1986.

23

(2)  Notwithstanding the provisions of section 301.1(f) and

24

paragraph (1) of this subsection, for elections made on or after

25

January 1, 1984 and before May 1, 1986, if the amounts charged

26

to the employer's reserve account exceed the amounts credited by

27

an amount equivalent to more than ten per centum (10%) of his

28

average annual payroll, the department, after determining his

29

Reserve Ratio Factor shall, upon the election of the employer,

30

adjust his reserve account balance to a negative balance equal

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1

to ten per centum (10%) of his average annual payroll. With

2

respect to future adjustments of negative balance accounts, the

3

secretary shall, upon the election of the employer, make

4

adjustments as follows:

5

(i)  In relation to adjustments made for the second time

6

after January 1, 1984 and before May 1, 1986, if the amounts

7

charged to his reserve account exceed the amounts credited by an

8

amount equivalent to more than fifteen per centum (15%) of his

9

average annual payroll, the department shall, upon the election

10

of the employer, adjust the reserve account balance to a

11

negative balance equal to fifteen per centum (15%) of his

12

average annual payroll.

13

(ii)  In relation to adjustments made for the third time

14

after January 1, 1984 and before May 1, 1986, if the amounts

15

charged to his reserve account exceed the amounts credited by an

16

amount equivalent to more than twenty per centum (20%) of his

17

average annual payroll, the department shall, upon the election

18

of the employer, adjust his reserve account balance to a

19

negative balance equal to twenty per centum (20%) of his average

20

annual payroll.

21

(d)  The department shall terminate the reserve account of

22

any employer who has not paid contributions for a period of four

23

consecutive twelve month periods, ending June thirtieth in any

24

year.

25

(e)  Nothing contained in this act shall be construed to

26

grant to any employer any claim or right of withdrawal with

27

respect to any amount allocated to him from, or paid by him

28

into, the Unemployment Compensation Fund, except as provided in

29

section three hundred eleven hereof.

30

Section 3.  The act is amended by adding a section to read:

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1

Section 302.1.  Relief from Charges.--Notwithstanding any

2

other provisions of this act assigning charges for compensation

3

paid to employes, the department shall relieve an employer of

4

charges for compensation in accordance with this section and

5

section 213 of this act.

6

(a)  Circumstances allowing relief:

7

(1)  If an individual was separated from his most recent work

8

for an employer due to being discharged for willful misconduct

9

connected with that work, or due to his leaving that work

10

without good cause attributable to his employment, or due to his

11

being separated from such work under conditions which would

12

result in disqualification for benefits under the provisions of

13

section 3 or section 402(e.1), the employer shall be relieved of

14

charges for compensation paid to the individual with respect to

15

any week of unemployment occurring subsequent to such

16

separation. Relief from charges under this paragraph terminates

17

if the employe returns to work for the employer.

18

(2)  If an individual's unemployment is directly caused by a

19

major natural disaster declared by the President of the United

20

States pursuant to section 102(1) of the Disaster Relief Act of

21

1970 (Public Law 91-606, 42 U.S.C. § 4401 et seq.) and the

22

individual would have been eligible for disaster unemployment

23

assistance as provided in section 240 of the Disaster Relief Act

24

of 1970 with respect to that unemployment but for the receipt of

25

unemployment compensation, an employer shall be relieved of

26

charges for compensation paid to such individual with respect to

27

any week of unemployment occurring due to the natural disaster,

28

to a maximum of the eight weeks immediately following the

29

declaration of emergency by the President of the United States.

30

(3)  If an individual subsequent to separation from his work

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1

is engaged in part-time work for a base year employer, other

2

than a base year employer from whom he has separated, the part-

3

time employer shall be relieved of charges for compensation paid

4

to the individual with respect to any week of unemployment

5

occurring subsequent to the separation and while such part-time

6

work continues without material change.

7

(4)  If the department finds that an individual was separated

8

from his most recent work for an employer due to a cessation of

9

business of eighteen months or less caused by a disaster, the

10

employer may be relieved of charges for compensation paid to

11

such individual with respect to any week of unemployment

12

occurring subsequent to that separation. Relief from charges

13

under this paragraph terminates if the employe returns to work

14

for the employer.

15

(b)  Requests for relief from charges:

16

(1)  Except as provided in subsection (c), in order to be

17

granted relief from charges for compensation an employer must

18

file a request with the department in the manner provided, and

19

containing all information required, by the department's

20

regulations.

21

(2)  If an employer is requesting relief from charges on the

22

basis of a separation that occurs on or before the date the

23

claimant files an application for benefits or on the basis of

24

continuing part-time work, the following shall apply:

25

(i)  If the request is filed within fifteen (15) days after

26

the date of the earliest notice issued by the department under

27

section 501(a) indicating that the claimant is eligible under

28

section 401(a) and relief is granted, relief shall begin with

29

the earliest week for which the claimant is eligible for

30

benefits pursuant to the claimant's application for benefits.

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1

(ii)  If the request is not filed within the time period

2

provided in subparagraph (i), relief, if granted by the

3

department, shall begin with the earliest week ending fifteen

4

(15) or more days subsequent to the date the request is filed.

5

(3)  If an employer is requesting relief from charges on the

6

basis of a separation that occurs after the claimant files an

7

application for benefits, the following shall apply:

8

(i)  If the request is filed within fifteen (15) days after

9

the date of the earliest notice issued by the department

10

indicating that the claimant is claiming benefits subsequent to

11

the separation and relief is granted, relief shall begin with

12

the earliest week for which the claimant is eligible for

13

benefits following the last day worked.

14

(ii)  If the request is not filed within the time period

15

provided in subparagraph (i), relief, if granted by the

16

department, shall begin with the earliest week ending fifteen

17

(15) or more days subsequent to the date the request is filed.

18

(c)  Relief from charges without a request:

19

(1)  If a claimant is determined ineligible for benefits

20

under section 3 or section 402(b), (e) or (e.1) pursuant to a

21

notice of determination that has become final, the department

22

shall grant relief from charges in accordance with subsection

23

(a)(1) to the employer from whom the claimant was separated,

24

beginning with the earliest week for which the claimant is

25

eligible for benefits following the week or weeks governed by

26

the notice of determination.

27

(2)  If a claimant is determined eligible for benefits under

28

section 402(b) pursuant to a notice of determination that has

29

become final, the department shall grant or deny relief from

30

charges in accordance with subsection (a)(1) to the employer

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1

from whom the claimant was separated, beginning with the

2

earliest week governed by the notice of determination, in

3

accordance with the following:

4

(i)  The department shall grant relief from charges if the

5

claimant left work for the employer without good cause

6

attributable to the claimant's employment.

7

(ii)  The department shall deny relief from charges if the

8

claimant left work for the employer with good cause attributable

9

to the claimant's employment.

10

(3)  Relief from charges granted to an employer remains in

11

effect for the purpose of benefits paid to the claimant pursuant

12

to a subsequent application for benefits if the relief has not

13

terminated in accordance with the provisions of this section.

14

(d)  Employer information:

15

(1)  An employer that is granted relief from charges on the

16

basis of a claimant's separation from employment shall notify

17

the department within fifteen (15) days if the claimant returns

18

to work for the employer. The employer shall include with the

19

notification the claimant's name and Social Security number, the

20

employer's name and account number and the date when

21

reemployment commenced.

22

(2)  An employer that is granted relief from charges on the

23

basis of continuing part-time work shall notify the department

24

within fifteen (15) days if the employment situation of the

25

claimant changes. The employer shall include with the

26

notification the claimant's name and Social Security number and

27

the employer's name and account number.

28

(e)  General provisions:

29

(1)  Where the individual's eligibility for compensation has

30

been finally determined under the provisions of Article V, such

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1

determination shall not be subject to attack in proceedings

2

under this section.

3

(2)  The findings and determinations of the department under

4

this section shall be subject to appeal in the manner provided

5

in this act for appeals from determinations of compensation.

6

Section 4.  Section 401(b) of the act, amended July 9, 1976

7

(P.L.842, No.147), is amended to read:

8

Section 401.  Qualifications Required to Secure

9

Compensation.--Compensation shall be payable to any employe who

10

is or becomes unemployed, and who--

11

* * *

12

(b)  [Has registered for work at, and thereafter continued to

13

report to an employment office in accordance with such

14

regulations as the secretary may prescribe, except that the

15

secretary may by regulation waive or alter either or both of the

16

requirements of this clause as to individuals attached to

17

regular jobs and as to such other types of cases or situations

18

with respect to which he finds that compliance with such

19

requirements would be oppressive or would be inconsistent with

20

the purposes of the act: Provided, however, That no such

21

regulation shall conflict with section four hundred and one (c)

22

of this act;]

23

(1)  Is making an active search for suitable employment. The

24

requirements for "active search" shall be established by the

25

department and shall include, at a minimum, all of the

26

following:

27

(i)  Registration by a claimant for employment search

28

services offered by the Pennsylvania CareerLink system or its

29

successor agency within thirty (30) days after initial

30

application for benefits.

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1

(ii)  Posting a resume on the system's database, unless the

2

claimant is seeking work in an employment sector in which

3

resumes are not commonly used.

4

(iii)  Applying for positions that offer employment and wages

5

similar to those the claimant had prior to his unemployment and

6

which are within a forty-five (45) minute commuting distance.

7

(2)  The Pennsylvania CareerLink system or its successor

8

agency shall provide documentation, on a quarterly basis or more

9

frequently, as the secretary deems appropriate, to the

10

Pennsylvania Unemployment Compensation Service Center system so

11

the system can conduct the necessary cross reference checks.

12

(3)  For the purposes of paragraph (1), the department may

13

determine that a claimant has made an active search for suitable

14

work if the claimant's efforts include actions comparable to

15

those traditional actions in their trade or occupation by which

16

jobs have been found by others in the community and labor market

17

in which the claimant is seeking employment.

18

(4)  The requirements of this subsection do not apply to any

19

week in which the claimant is in training approved under section

20

236(a)(1) of the Trade Act of 1974 (Public Law 93-618, 19 U.S.C.

21

§ 2101 et seq.) or any week in which the claimant is required to

22

participate in reemployment services under section 402(j).

23

(5)  The requirements of this subsection shall not apply to a

24

claimant who is laid off for lack of work and advised by the

25

employer of the date on which the claimant will return to work.

26

(6)  The department may waive or alter the requirements of

27

this subsection in cases or situations with respect to which the

28

secretary finds that compliance with such requirements would be

29

oppressive or which would be inconsistent with the purposes of

30

this act.

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1

* * *

2

Section 4.1.  Section 402(b) and (e) of the act, amended

<--

3

August 24, 1953 (P.L.1397, No.396) and October 22, 1981

4

(P.L.301, No.106), are amended to read:

5

Section 402.  Ineligibility for Compensation.--An employe

6

shall be ineligible for compensation for any week--

7

* * *

8

(b)  In which his unemployment is due to voluntarily leaving

9

work without cause of a necessitous and compelling nature

10

attributable to his employment, irrespective of whether or not

11

such work is in "employment" as defined in this act: Provided,

12

That a voluntary leaving work because of a work-related 

13

disability if the employer is able to provide other suitable

14

work, shall be deemed not a cause of a necessitous and

15

compelling nature attributable to his employment: And provided

16

further, That no employe shall be deemed to be ineligible under

17

this subsection where the Federal Unemployment Tax Act requires

18

eligibility, and provided that no employe shall be deemed

19

ineligible under this subsection if the employe is a spouse of a

20

full-time member of the United States Armed Forces or a full-

21

time member of any of its reserve components, including the

22

Pennsylvania National Guard, and the employe is leaving

23

employment due to the reassignment of the military member to a

24

different geographical location: And provided further, That no

25

employe shall be deemed to be ineligible under this subsection

26

where as a condition of continuing in employment such employe

27

would be required to join or remain a member of a company union

28

or to resign from or refrain from joining any bona fide labor

29

organization, or to accept wages, hours or conditions of

30

employment not desired by a majority of the employes in the

- 16 -

 


1

establishment or the occupation, or would be denied the right of

2

collective bargaining under generally prevailing conditions, and

3

that in determining whether or not an employe has left his work

4

voluntarily without cause of a necessitous and compelling nature

5

attributable to his employment, the department shall give

6

consideration to the same factors, insofar as they are

7

applicable, provided, with respect to the determination of

8

suitable work under section four (t): And provided further, That

9

the provisions of this subsection shall not apply in the event

10

of a stoppage of work which exists because of a labor dispute

11

within the meaning of subsection (d). Provided further, That no

12

otherwise eligible claimant shall be denied benefits for any

13

week in which his unemployment is due to exercising the option

14

of accepting a layoff, from an available position pursuant to a

15

labor-management contract agreement, or pursuant to an

16

established employer plan, program or policy: Provided further,

17

That a claimant shall not be disqualified for voluntarily

18

leaving work, which is not suitable employment to enter training

19

approved under section 236(a)(1) of the Trade Act of 1974. For

20

purposes of this subsection the term "suitable employment" means

21

with respect to a claimant, work of a substantially equal or

22

higher skill level than the claimant's past "adversely affected

23

employment" (as defined in section 247 of the Trade Act of

24

1974), and wages for such work at not less than eighty per

25

centum of the worker's "average weekly wage" (as defined in

26

section 247 of the Trade Act of 1974).

27

* * *

28

(e)  In which his unemployment is due to his discharge or

29

temporary suspension from work for willful misconduct connected

30

with his work, irrespective of whether or not such work is

- 17 -

 


1

"employment" as defined in this act[; and]. For purposes of this

2

subsection, the term "willful misconduct" shall include, but is

3

not limited to, the violation of any reasonable workplace rule

4

or work-related government regulation or law of which the

5

employe was aware; failure to maintain a valid license or

6

certificate that has been issued by a Federal or Commonwealth

7

agency or political subdivision and which is a requirement of

8

employment; the deliberate damage to property of the employer or

9

another employe or the theft of an employer's or another

10

employe's property; reporting to work under the influence of 

11

illegal drugs or alcohol; threatening a coworker or supervisor

12

with physical harm or threatening to harm the interests of the

13

employer; disregard of supervisor's reasonable directives or

14

orders and acts of negligence or an act of negligence which

15

indicates substantial disregard for employer's interests.

16

* * *

17

Section 5.  Section 404 introductory paragraph, (a), (c), (d)

<--

18

and (e)(2) of the act, amended March 24, 1964 (1st Sp. Sess.

<--

19

P.L.53, No.1), January 17, 1968 (P.L.21, No.6), July 10, 1980

20

(P.L.521, No.108), July 21, 1983 (P.L.68, No.30), October 19,

21

1988 (P.L.818, No.109) and December 16, 2005 (P.L.437, No.80),

22

are amended to read:

23

Section 404.  Rate and Amount of Compensation.--Compensation

24

shall be paid to each eligible employe in accordance with the

25

following provisions of this section except that compensation

26

payable with respect to weeks ending in benefit years which

27

begin prior to the first day of January [1989] 2013 shall be

28

paid on the basis of the provisions of this section in effect at

29

the beginning of such benefit years.

30

* * *

<--

- 18 -

 


1

(a)  (1)  The employe's weekly benefit rate shall be computed

<--

2

as (1) the amount appearing in Part B of the Table Specified for

3

the Determination of Rate and Amount of Benefits on the line on

4

which in Part A there appears his "highest quarterly wage," or

5

(2) fifty per centum (50%) of his full-time weekly wage,

6

whichever is greater. Notwithstanding any other provision of

7

this act, if an employe's weekly benefit rate, as calculated

8

under this paragraph, is less than $70, he shall be ineligible

9

to receive any amount of compensation. If the employe's weekly

10

benefit rate is not a multiple of one dollar ($1), it shall be

11

rounded to the next lower multiple of one dollar ($1).

12

(2)  If the base year wages of an employe whose weekly

13

benefit rate has been determined under clause (2) of paragraph

14

(1) of this subsection are insufficient to qualify him under

15

subsection (c) of this section, his weekly benefit rate shall be

16

redetermined under clause (1) of paragraph (1) of this

17

subsection.

18

(3)  If the base year wages of an employe whose weekly

19

benefit rate has been determined under clause (1) of paragraph

20

(1) of this subsection, or redetermined under paragraph (2) of

21

this subsection, as the case may be, are insufficient to qualify

22

him under subsection (c) of this section but are sufficient to

23

qualify him for any one of the next three lower weekly benefit

24

rates, his weekly benefit rate shall be redetermined at the

25

highest of such next lower rates.

26

* * *

27

(c)  [Any] The total amount of benefits to which an otherwise

28

eligible employe who has base year wages in an amount equal to,

29

or in excess, of the amount of qualifying wages appearing in

30

Part C of the Table Specified for the Determination of Rate and

- 19 -

 


1

Amount of Benefits on the line on which in Part B there appears

2

his weekly benefit rate, as determined under subsection (a) of

3

this section, shall be entitled during his benefit year to the

4

amount appearing in Part [D] B on said line multiplied by the

5

number of qualifying credit weeks during his base year, up to a

6

maximum of twenty-six (26): Provided he had eighteen (18) or

7

more "credit weeks" during his base year [or Part E provided he

8

had sixteen (16) or seventeen (17) "credit weeks" during his

9

base year]. Notwithstanding any other provision of this act, any

10

employe with less than [sixteen (16)] eighteen (18) "credit

11

weeks" during the employe's base year shall be ineligible to

12

receive any amount of compensation.

13

(d)  (1)  Notwithstanding any other provisions of this

14

section each eligible employe who is unemployed with respect to

15

any week ending subsequent to July 1, 1980 shall be paid, with

16

respect to such week, compensation in an amount equal to his

17

weekly benefit rate less the total of (i) the remuneration, if

18

any, paid or payable to him with respect to such week for

19

services performed which is in excess of his partial benefit

20

credit [and], (ii) vacation pay, if any, which is in excess of

21

his partial benefit credit, except when paid to an employe who

22

is permanently or indefinitely separated from his employment[.] 

23

and (iii) the amount of severance pay that is attributed to the

24

week.

25

(1.1)  For purposes of clause (1)(iii), all of the following

26

apply:

27

(i)  "Severance pay" means one or more payments made by an

28

employer to an employe on account of separation from the service

29

of the employer, regardless of whether the employer is legally

30

bound by contract, statute or otherwise to make such payments.

- 20 -

 


1

The term does not include payments for pension, retirement or

2

accrued leave or payments of supplemental unemployment benefits.

3

(ii)  The amount of severance pay attributed pursuant to

4

subclause (iii) shall be an amount not less than zero determined

5

by subtracting one-half one-fourth of the average annual wage as

<--

6

calculated under subsection (e) as of June 30 immediately

7

preceding the calendar year in which the claimant's benefit year

8

begins from the total amount of severance pay paid or payable to

9

the claimant by the employer.

10

(iii)  Severance pay is attributed as follows:

11

(A)  Severance pay is attributed to the day, days, week or

12

weeks immediately following the employe's separation.

13

(B)  The number of days or weeks to which severance pay is

14

attributed is determined by dividing the total amount of

15

severance pay by the regular full-time daily or weekly wage of

16

the claimant.

17

(C)  The amount of severance pay attributed to each day or

18

week equals the regular full-time daily or weekly wage of the

19

claimant.

20

(D)  When the attribution of severance pay is made on the

21

basis of the number of days, the pay shall be attributed to the

22

customary working days in the calendar week.

23

(2)  (i)  In addition to the deductions provided for in

24

clause (1), for any week with respect to which an individual is

25

receiving a pension, including a governmental or other pension,

26

retirement or retired pay, annuity or any other similar periodic

27

payment, under a plan maintained or contributed to by a base

28

period or chargeable employer, the weekly benefit amount payable

29

to such individual for such week shall be reduced, but not below

30

zero, by the pro-rated weekly amount of the pension as

- 21 -

 


1

determined under subclause (ii).

2

(ii)  If the pension is entirely contributed to by the

3

employer, then one hundred per centum (100%) of the pro-rated

4

weekly amount of the pension shall be deducted. Except as set

5

forth in clause (4), if the pension is contributed to by the

6

individual, in any amount, then fifty per centum (50%) of the

7

pro-rated weekly amount of the pension shall be deducted.

8

(iii)  No deduction shall be made under this clause by reason

9

of the receipt of a pension if the services performed by the

10

individual during the base period or remuneration received for

11

such services for such employer did not affect the individual's

12

eligibility for, or increase the amount of, such pension,

13

retirement or retired pay, annuity or similar payment.

14

(3)  The provisions of this subsection shall be applicable

15

whether or not such vacation pay, retirement pension or

16

annuities or wages are legally required to be paid. If such

17

retirement pension or annuity payments deductible under the

18

provisions of this subsection are received on other than a

19

weekly basis, the amount thereof shall be allocated and pro-

20

rated in accordance with the rules and regulations of the

21

department. Vacation pay or other remuneration deductible under

22

the provisions of this subsection shall be pro-rated on the

23

basis of the employe's normal full-time weekly wage and as so

24

pro-rated shall be allocated to such period or periods of

25

unemployment as shall be determined by rules and regulations of

26

the department. Such compensation, if not a multiple of one

27

dollar ($1), shall be computed to the next lower multiple of one

28

dollar ($1).

29

(4)  No deductions shall be made under this subsection for

30

pensions paid under the Social Security Act (Public Law 74-271,

- 22 -

 


1

42 U.S.C. § 301 et seq.), or the Railroad Retirement Act of 1974

2

(Public Law 93-445, 88 Stat. 1305), if the pension is

3

contributed to by the individual in any amount.

4

(e)  * * *

5

(2)  (i)  The Table Specified for the Determination of Rate

6

and Amount of Benefits shall be extended or contracted annually,

7

automatically by regulations promulgated by the secretary in

8

accordance with the following procedure: for calendar year one

9

thousand nine hundred seventy-two and for all subsequent

10

calendar years, to a point where the maximum weekly benefit rate

11

[equals] shall equal sixty-six and two-thirds per centum of the

12

average weekly wage for the [twelve-month] thirty-six-month 

13

period ending June 30 preceding each calendar year. If the

14

maximum weekly benefit rate is not a multiple of one dollar

15

($1), it shall be [increased by one dollar ($1) and then] 

16

rounded to the next lower multiple of one dollar ($1): Provided,

17

however, That effective with benefit years beginning the first

18

Sunday at least thirty days after the effective date of this

19

amendatory act, the per centum stated in this paragraph for

20

establishing the maximum weekly benefit rate shall be sixty-two

21

and two-thirds per centum for the remainder of calendar year one

22

thousand nine hundred seventy-four, sixty-four and two-thirds

23

per centum for the calendar year one thousand nine hundred

24

seventy-five, and sixty-six and two-thirds per centum for the

25

calendar year one thousand nine hundred seventy-six and for all

26

subsequent calendar years.

27

The Table Specified for the Determination of Rate and Amount

28

of Benefits as so extended or contracted shall be effective only

29

for those claimants whose benefit years begin on or after the

30

first day of January of such calendar year.

- 23 -

 


1

(ii)  For the purpose of determining the maximum weekly

2

benefit rate, the Pennsylvania average weekly wage in covered

3

employment shall be computed on the basis of the average annual 

4

total wages reported (irrespective of the limit on the amount of

5

wages subject to contributions) for the [twelve-month] thirty-

6

six-month period ending June 30 (determined by dividing the

7

total wages reported for the thirty-six-month period by three) 

8

and this amount shall be divided by the average monthly number

9

of covered workers (determined by dividing the total covered

10

employment reported for the same [fiscal year by twelve] thirty-

11

six-month period by thirty-six) to determine the average annual

12

wage. The average annual wage thus obtained shall be divided by

13

fifty-two and the average weekly wage thus determined rounded to

14

the nearest cent. If the maximum weekly benefit rate as

15

determined under subclause (i) is less than the maximum weekly

16

benefit rate established for calendar year 2012, the maximum

17

weekly benefit rate will be frozen until the calendar year in

18

which the new maximum weekly benefit rate as determined under

19

subclause (i) exceeds the maximum weekly benefit rate for

20

calendar year 2012.

21

* * *

22

Section 6.  Section 401-A(b) and (c) of the act, amended

23

August 4, 2009 (P.L.114, No.30), are amended to read:

24

Section 401-A.  Definitions.--As used in this article:

25

* * *

26

(b)  (1)  There is a "State 'on' indicator" for this State

27

for a week if the Secretary of Labor and Industry determines in

28

accordance with the regulations of the United States Secretary

29

of Labor, that for the period consisting of such week and the

30

immediately preceding twelve weeks, the rate of insured

- 24 -

 


1

unemployment (not seasonally adjusted) under this act:

2

(i)  (A)  equaled or exceeded one hundred twenty per centum

3

of the average of such rates for the corresponding thirteen-week

4

period ending in each of the preceding two calendar years, or

5

(B)  with respect to compensation for weeks of unemployment

6

beginning after December 17, 2010, and ending on or before

7

December 31, 2011, equaled or exceeded one hundred twenty per

8

centum of the average of such rates for the corresponding

9

thirteen-week period ending in each of the preceding three

10

calendar years, and

11

(ii)  equaled or exceeded five per centum: Provided, That

12

with respect to benefits for weeks of unemployment beginning

13

with the passage of this amendment but no earlier than April 3,

14

1977, the determination of whether there has been a State "on"

15

or "off" indicator beginning or ending any extended benefit

16

period shall be made under this paragraph as if (A) this

17

paragraph did not contain subparagraph (i) thereof, and (B) the

18

per centum rate indicated in this paragraph were six, except

19

that, notwithstanding any such provision of this paragraph, any

20

week for which there would otherwise be a State "on" indicator

21

shall continue to be such a week and shall not be determined to

22

be a week for which there is a State "off" indicator.

23

(2)  There is a "State 'off' indicator" for this State for a

24

week if the Secretary of Labor and Industry determines in

25

accordance with the regulations of the United States Secretary

26

of Labor, that for the period consisting of such week and the

27

immediately preceding twelve weeks, the rate of insured

28

unemployment (not seasonally adjusted) under this act:

29

(i)  was less than one hundred twenty per centum of the

30

average of such rates for the corresponding thirteen-week period

- 25 -

 


1

ending in each of the preceding two calendar years, if paragraph

2

(1)(i)(A) applies or, the preceding three calendar years, if

3

paragraph (1)(i)(B) applies, or

4

(ii)  was less than five per centum.

5

(3)  Notwithstanding the provisions of this subsection, any

6

week for which there would otherwise be a State "on" indicator

7

shall continue to be such a week and shall not be determined to

8

be a week for which there is a State "off" indicator.

9

(c)  (1)  There is a "State 'on' indicator" for this State

10

for a week if:

11

(i)  the average rate of total unemployment in this State,

12

seasonally adjusted, for the period consisting of the most

13

recent three months for which data for all states are published

14

before the close of such week equals or exceeds six and one-half

15

per centum; and

16

(ii)  (A)  the average rate of total unemployment in this

17

State, seasonally adjusted, for the three-month period referred

18

to in subparagraph (i) equals or exceeds one hundred ten per

19

centum of such average rate for either, or both, of the

20

corresponding three-month periods ending in the two preceding

21

calendar years, or

22

(B)  with respect to compensation for weeks of unemployment

23

beginning after December 17, 2010, and ending on or before

24

December 31, 2011, the average rate of total unemployment in

25

this State, seasonally adjusted, for the three-month period

26

referred to in subparagraph (i) equals or exceeds one hundred

27

ten per centum of such average rate for any, or all, of the

28

corresponding three-month periods ending in the three preceding

29

calendar years.

30

(2)  There is a State "off" indicator for this State for a

- 26 -

 


1

week if the requirements of paragraph (1)(i) or (ii) are not

2

satisfied.

3

(3)  This subsection shall be applicable only with respect to

4

weeks of unemployment for which one hundred per centum Federal

5

sharing of extended benefits is available under section 2005(a)

6

of the American Recovery and Reinvestment Act of 2009 (Public

7

Law 111-5, 123 Stat. 115), without regard to the extension of

8

Federal sharing for certain claims as provided under section

9

2005(c) of the American Recovery and Reinvestment Act of 2009,

10

or under a subsequently enacted provision of Federal law.

11

(4)  Notwithstanding the provisions of this subsection, any

12

week for which there would otherwise be a State "on" indicator

13

shall continue to be such a week and shall not be determined to

14

be a week for which there is a State "off" indicator.

15

(5)  For purposes of this subsection, determinations of the

16

rate of total unemployment for any period, and of any seasonal

17

adjustment, shall be made by the United States Secretary of

18

Labor.

19

* * *

20

Section 7.  Section 505 of the act, amended April 23, 1942

21

(Sp.Sess., P.L.60, No.23), is amended to read:

22

Section 505.  Rules of Procedure.--The manner in which

23

appeals shall be taken, the reports thereon required from the

24

department, the claimant and employers, and the conduct of

25

hearings and appeals, shall be in accordance with rules of

26

procedure prescribed by the board whether or not such rules

27

conform to common law or statutory rules of evidence and other

28

technical rules of procedure. Rules established by the board

29

shall permit either party to a hearing to testify via telephone,

30

without regard to distance of hearing location from either

- 27 -

 


1

party.

2

When the same or substantially similar evidence is relevant

3

and material to the matter in issue in applications and claims

4

filed by more than one individual or in multiple applications

5

and claims filed by a single individual the same time and place

6

for considering each such application and claim may be fixed,

7

hearings thereon jointly conducted, a single record of the

8

proceedings made and evidence introduced with respect to any

9

application or claim considered as introduced with respect to

10

all of such applications or claims: Provided, That in the

11

judgment of the board or referee having jurisdiction of the

12

proceeding such consideration will not be prejudicial to any

13

party.

14

Section 8.  The act is amended by adding an article to read:

15

ARTICLE XIII

16

SHARED-WORK PROGRAM

17

Section 1301.  Definitions.

18

The following words and phrases when used in this act shall

19

have the meanings given to them in this section unless the

20

context clearly indicates otherwise:

21

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

22

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

23

to participate in a shared-work plan.

24

"Approved shared-work plan."  An employer's shared-work plan

25

which meets the requirements of section 1303 and which the

26

department approves in writing.

27

"Fringe benefit."  Health insurance, a retirement benefit

28

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

29

holiday, sick leave and any other similar employee benefit

30

provided by an employer.

- 28 -

 


1

"Participating employee."  An employee in the affected unit

2

whose hours of work are reduced by the reduction percentage

3

under the shared-work plan.

4

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

5

plan in effect.

6

"Reduction percentage."  The percentage by which each

7

participating employee's normal weekly hours of work are reduced

8

under a shared-work plan in accordance with section 1303(b).

9

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

10

which participating employees of an affected unit share the work

11

remaining after reduction in their normal weekly hours of work.

12

Section 1302.  Application to approve a shared-work plan.

13

(a)  Requirements.--An employer that meets all of the

14

following requirements may apply to the department for approval

15

of a shared-work plan:

16

(1)  The employer has filed all quarterly reports and

17

other reports required under this act and has paid all

18

contribution, reimbursement, interest and penalty due through

19

the date of the employer's application.

20

(2)  If the employer is contributory, the employer's

21

reserve account balance as of the most recent computation

22

date preceding the date of the employer's application is a

23

positive number.

24

(3)  The employer has paid wages for the 12 consecutive

25

calendar quarters preceding the date of the employer's

26

application.

27

(b)  Application.--An application under this section shall be

28

made in the manner prescribed by the department and contain all

29

information required by the department, including the following:

30

(1)  The employer's assurance that it will provide

- 29 -

 


1

reports to the department relating to the operation of its

2

shared-work plan at the times and in the manner prescribed by

3

the department and containing all information required by the

4

department, including the number of hours worked each week by

5

participating employees.

6

(2)  The employer's assurance that it will not hire new

7

employees in, or transfer employees to, the affected unit

8

during the effective period of the shared-work plan.

9

(3)  The employer's assurance that it will not lay off

10

participating employees during the effective period of the

11

shared-work plan, or reduce participating employees' hours of

12

work by more than the reduction percentage during the

13

effective period of the shared-work plan, except in cases of

14

holidays, designated vacation periods, equipment maintenance 

15

or similar circumstances.

16

(4)  A list of the week or weeks within the requested

17

effective period of the shared-work plan during which

18

participating employees are anticipated to work fewer hours

19

than the number of hours determined under section 1303(a)(5)

20

due to circumstances included in paragraph (3).

21

(5)  The employer's certification that the implementation

22

of a shared-work plan is in lieu of temporary layoffs that

23

would affect at least 10% of the employees in the affected

24

unit and would result in an equivalent reduction in work

25

hours.

26

(6)  The employer's assurance that it will abide by all

27

terms and conditions of this article.

28

(c)  Multiple shared-work plans.--An employer may apply to

29

the department for approval of more than one shared-work plan.

30

Section 1303.  Shared-work plan requirements.

- 30 -

 


1

(a)  General rule.--The department may approve a shared-work

2

plan only if the plan meets all of the following requirements:

3

(1)  The shared-work plan applies to one affected unit.

4

(2)  All employees in the affected unit are participating

5

employees, except that the following employees may not be

6

participating employees:

7

(i)  An employee who has been employed in the

8

affected unit for less than three months prior to the

9

date the employer applies for approval of the shared-work

10

plan.

11

(ii)  An employee whose hours of work per week

12

determined under paragraph (5) is 40 or more hours.

13

(3)  There are no fewer than two participating employees,

14

determined without regard to corporate officers.

15

(4)  The participating employees are identified by name

16

and Social Security number.

17

(5)  The number of hours a participating employee will

18

work each week during the effective period of the shared-work

19

plan is determined by the following formula:

20

employee's normal weekly hours of 

21

work x (100% - reduction percentage)

22

(6)  As a result of a decrease in the number of hours

23

worked by each participating employee, there is a

24

corresponding reduction in wages.

25

(7)  If any participating employee is covered by a

26

collective bargaining agreement, the shared-work plan is

27

approved in writing by the collective bargaining

28

representative.

29

(8)  The shared-work plan does not affect the fringe

30

benefits of any participating employee not covered by a

- 31 -

 


1

collective bargaining agreement.

2

(9)  The effective period of the shared-work plan is not

3

more than 52 consecutive weeks.

4

(10)  The effective period of the shared-work plan

5

combined with effective periods of the participating

6

employer's prior shared-work plans does not equal more than

7

104 weeks out of a 156-week period.

8

(11)  The reduction percentage satisfies the requirements

9

of subsection (b).

10

(b)  Reduction percentage.--The reduction percentage under an

11

approved shared-work plan shall meet all of the following

12

requirements:

13

(1)  The reduction percentage shall be no less than 20%

14

and no more than 40%.

15

(2)  The reduction percentage shall be the same for all

16

participating employees.

17

(3)  The reduction percentage shall not change during the

18

period of the shared-work plan unless the plan is modified in

19

accordance with section 1308.

20

Section 1304.  Approval or disapproval of shared-work plan.

21

The department shall approve or disapprove a shared-work plan

22

no later than 15 days after the date the employer's shared-work

23

plan application that meets the requirements of section 1302(b)

24

is received by the department. The department's decision shall

25

be made in writing and, if the shared-work plan is disapproved,

26

shall include the reasons for the disapproval.

27

Section 1305.  Effective period of shared-work plan.

28

(a)  Number of weeks.--A shared-work plan is effective for

29

the number of consecutive weeks indicated in the employer's

30

application, or a lesser number of weeks as approved by the

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1

department, unless sooner terminated in accordance with section

2

1309.

3

(b)  Start date.--The effective period of the shared-work

4

plan shall begin with the first calendar week following the date

5

on which the department approves the plan.

6

Section 1306.  Criteria for compensation.

7

(a)  General rule.--Compensation shall be payable to a

8

participating employee for a week within the effective period of

9

an approved shared-work plan during which the employee works the

10

number of hours determined under section 1303(a)(5) for the

11

participating employer on the same terms, in the same amount and

12

subject to the same conditions that would apply to the

13

participating employee without regard to this article, except as

14

follows:

15

(1)  A participating employee shall not be required to be

16

unemployed within the meaning of section 4(u) or file claims

17

for compensation under section 401(c).

18

(2)  Notwithstanding section 404(d)(1), a participating

19

employee shall be paid compensation in an amount equal to the

20

product of his weekly benefit rate and the reduction

21

percentage, rounded to the next lower whole dollar amount.

22

(3)  The department shall not deny compensation to a

23

participating employee for any week during the effective

24

period of the shared-work plan by reason of the application

25

of any provision of this act relating to active search for

26

work or refusal to apply for or accept work other than work

27

offered by the participating employer.

28

(4)  A participating employee satisfies the requirements

29

of section 401(d)(1) if the employee is able to work and is

30

available for the employee's normal weekly hours of work with

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1

the participating employer.

2

(b)  Equivalent remuneration.--For purposes of subsection

3

(a), if a participating employee works fewer hours than the

4

number of hours determined under section 1303(a)(5) for the

5

participating employer during a week within the effective period

6

of the approved shared-work plan, but receives remuneration

7

equal to remuneration the employee would have received if the

8

employee had worked the number of hours determined under section

9

1303(a)(5), the employee will be deemed to have worked the

10

number of hours determined under section 1303(a)(5) during that

11

week.

12

(c)  Inapplicability of article.--A participating employee's

13

eligibility for compensation for a week within the effective

14

period of an approved shared-work plan shall be determined

15

without regard to this article under any of the following

16

circumstances:

17

(1)  The employee works fewer hours than the number of

18

hours determined under section 1303(a)(5) for the

19

participating employer during the week and subsection (b)

20

does not apply.

21

(2)  The employee works more hours than the number of

22

hours determined under section 1303(a)(5) for the

23

participating employer during the week.

24

(3)  The employee receives remuneration for the week from

25

the participating employer for hours in excess of the number

26

of hours determined under section 1303(a)(5).

27

Section 1307.  Participating employer responsibilities.

28

(a)  Filing claims.--The department shall establish a

29

schedule of consecutive two-week periods within the effective

30

period of the shared-work plan. The department may, as

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1

necessary, include one-week periods in the schedule and revise

2

the schedule. At the end of each scheduled period, the

3

participating employer shall file claims for compensation for

4

the week or weeks within the period on behalf of the

5

participating employees. The claims shall be filed no later than

6

the last day of the week immediately following the period,

7

unless an extension of time is granted by the department for

8

good cause. The claims shall be filed in the manner prescribed

9

by the department and shall contain all information required by

10

the department to determine the eligibility of the participating

11

employees for compensation.

12

(b)  Benefit charges.--Notwithstanding any other provision of

13

this act, compensation paid to participating employees for weeks

14

within the effective period of an approved shared-work plan will

15

be charged to the participating employer.

16

Section 1308.  Modification of an approved shared-work plan.

17

An employer may apply to the department for approval to

18

modify an approved shared-work plan to meet changed conditions.

19

The department shall reevaluate the plan and may approve the

20

modified plan if it meets the requirements for approval under

21

section 1303. If the modifications cause the shared-work plan to

22

fail to meet the requirements for approval, the department shall

23

disapprove the proposed modifications.

24

Section 1309.  Termination of an approved shared-work plan.

25

(a)  General rule.--The secretary may terminate an approved 

26

shared-work plan for good cause.

27

(b)  Good cause.--For purposes of subsection (a), good cause

28

includes any of the following:

29

(1)  The approved shared-work plan is not being executed

30

according to its approved terms and conditions.

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1

(2)  The participating employer fails to comply with the

2

assurances given in the approved shared-work plan.

3

(3)  The participating employer or a participating

4

employee violates any criteria on which approval of the

5

shared-work plan was based.

6

(c)  Termination by employer.--The employer may terminate an

7

approved shared-work plan by written notice to the department.

8

Section 1310.  Department discretion.

9

The decision to approve or disapprove a shared-work plan, to

10

approve or disapprove a modification of an approved shared-work

11

plan or to terminate an approved shared-work plan will be made

12

within the department's discretion. Such decisions are not

13

subject to the appeal provisions of Article V.

14

Section 1311.  Publication of notice.

15

The department shall transmit to the Legislative Reference

16

Bureau for publication in the Pennsylvania Bulletin notice that

17

the provisions of this article have been approved by the United

18

States Department of Labor as required under section 3304(a)(4)

19

(E) of the Federal Unemployment Tax Act (Public Law 86-778, 26

20

U.S.C. § 3304(a)(4)(E)) and section 303(a)(5) of the Social

21

Security Act (49 Stat. 620, 42 U.S.C. § 503(a)(5)).

22

Section 1312.  Severability.

23

Notwithstanding any other section of this act, if any

24

provision or provisions of this article cause the United States

25

Department of Labor to withhold approval of this article as

26

required under section 3304(a)(4)(E) of the Federal Unemployment

27

Tax Act (Public Law 86-778, 26 U.S.C. § 3304(a)(4)(E)) and

28

section 303(a)(5) of the Social Security Act (49 Stat. 620, 42

29

U.S.C. § 503(a)(5)), the department is authorized to permanently

30

suspend the provision or provisions.

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1

Section 1313.  Expiration.

2

This article shall expire five years from its effective date.

3

Section 9.  This act shall apply as follows:

4

(1)  The amendment or addition of sections 213, 302 and

5

302.1, other than section 302.1(c) of the act, shall apply to 

<--

6

charges for compensation corresponding to benefit years that

7

begin on and after the effective date of sections 213, 302

8

and 302.1 of the act.

9

(2)  The addition of section 302.1(c)(1) and (2) of the

10

act shall apply to notices of determination regarding

11

eligibility for benefits that are issued on or after the date

12

of implementation of the Department of Labor and Industry's

13

system to provide relief from charges without an employer

14

request, as announced by the Secretary of Labor and Industry

15

in a notice published in the Pennsylvania Bulletin. The

16

addition of section 302.1(c)(3) shall apply to relief from

17

charges that is granted on or after such implementation date.

18

(3)  The amendment of section 401(b) of the act shall 

<--

19

apply to benefit years that begin on after January 1, 2012.

20

(4)  The amendment of section 404, other than the

21

amendment of section 404(d)(1) 404(c) and (d)(1) and the

<--

22

addition of section 404(d)(1.1) of the act, shall apply to 

<--

23

the determination of the maximum weekly benefit rate for

24

benefit years that begin on or after January 1, 2013.

25

(5)  The amendment or addition of section 404(d)(1) and

26

(1.1) of the act shall apply to benefit years that begin on 

<--

27

or after the effective date of section 404(d)(1) and (1.1).

28

(6)  The amendment or addition of section 404(d)(1) and

<--

29

(1.1) of the act shall not apply to severance pay agreements

30

that were agreed to by an employer and employee prior to the

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1

effective date of this section.

2

(7)  The amendment of section 4(g.1) and 404(a) of the

3

act shall apply to benefit years that begin on or after July

4

1, 2012.

5

(8)  The amendment of section 404 (c) of the act shall

6

apply to benefit years that begin on or after January 1,

7

2013.

8

(9)  The amendment of section 402(b) and (e) of the act

9

are applicable to initial claims filed on or after January 1,

10

2012.

11

Section 10.  The amendment of section 401-A(b) and (c) of the 

<--

12

act shall apply retroactively to December 18, 2010.

13

Section 11.  This act shall take effect as follows:

14

(1)  The amendment of section 401(b) of the act shall 

<--

15

take effect January 1, 2012.

16

(1.1)  The amendment of sections 4(g.1) and 404(a) of the

<--

17

act shall take effect July 1, 2012.

18

(2)  The amendment of section 404 introductory paragraph

19

and subsection subsections (c) and (e)(2) of the act shall

<--

20

take effect January 1, 2013.

21

(3)  This section shall take effect immediately.

22

(4)  The addition of Article XIII of the act shall take

23

effect upon publication in the Pennsylvania Bulletin of the

24

notice required under section 1311 of the act or July 1,

25

2011, whichever occurs later.

26

(5)  The remainder of this act shall take effect in 60

27

days.

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