| HOUSE AMENDED |
| PRIOR PRINTER'S NOS. 1133, 1189, 1239, 1293, 1363 | PRINTER'S NO. 1365 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY GORDNER, APRIL 28, 2011 |
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| AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 16, 2011 |
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| AN ACT |
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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 |
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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.] "Credit | <-- |
17 | week" means any calendar week in an individual's base year with |
18 | respect to which he was paid in employment as defined in this |
19 | act, remuneration of not less than: |
20 | (1) One hundred dollars ($100). This paragraph shall expire |
21 | December 31, 2014. |
22 | (2) Sixteen (16) times the minimum hourly wage required by |
23 | the act of January 17, 1968 (P.L.11, No.5), known as "The |
24 | Minimum Wage Act of 1968." This paragraph shall take effect |
25 | January 1, 2015. |
26 | Only one credit week can be established with respect to any one |
27 | calendar week. |
28 | * * * |
29 | Section 1.1. Section 213 of the act, added December 9, 2002 |
30 | (P.L.1330, No.156), is amended to read: |
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1 | Section 213. Relief from Charges for Certain Employers.--(a) |
2 | An employer that makes payments in lieu of contributions |
3 | pursuant to Article X, XI or XII shall be relieved of charges in |
4 | accordance with section [302(a)] 302.1 and regulations of the |
5 | department, for compensation paid on applications for benefits |
6 | effective during a calendar year, if the employer satisfies the |
7 | following requirements: |
8 | (1) The employer pays a nonrefundable solvency fee under |
9 | subsection (b) for the calendar year within thirty (30) days |
10 | after notice of the fee is sent to the employer's last known |
11 | address. The department may for good cause extend the period |
12 | within which the fee must be paid. |
13 | (2) All reports required by this act and regulations of the |
14 | department for calendar quarters through the second calendar |
15 | quarter of the preceding calendar year are filed. |
16 | (b) An employer's solvency fee for a calendar year shall be |
17 | the monetary amount determined by multiplying the solvency fee |
18 | rate for the year by the amount of wages paid, without regard to |
19 | the exclusion in section 4(x)(1), by the employer in the four |
20 | consecutive calendar quarters ending on June 30 of the preceding |
21 | calendar year, provided that an employer's solvency fee for a |
22 | year shall not be less than twenty-five dollars ($25). |
23 | (1) For calendar years 2003, 2004 and 2005, the solvency fee |
24 | rate shall be three ten thousandths (.0003). |
25 | (2) In 2005 the secretary shall redetermine the solvency fee |
26 | rate. The secretary shall redetermine the rate so that the |
27 | unrounded rate yields solvency fees approximately equal to the |
28 | amount of compensation for which charges are relieved under this |
29 | section. For purposes of redetermining the rate, the secretary |
30 | shall use the amount of compensation for which charges are |
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1 | relieved under this section paid during 2003 and 2004 and the |
2 | amount of wages paid, without regard to the exclusion in section |
3 | 4(x)(1), during the same time period by employers who paid a |
4 | solvency fee under this section. The rate as redetermined shall |
5 | take effect for the next calendar year and shall remain in |
6 | effect for three years. |
7 | (3) Beginning in 2008 and each fifth year thereafter, the |
8 | secretary shall redetermine the solvency fee rate. The secretary |
9 | shall redetermine the rate so that the unrounded rate yields |
10 | solvency fees approximately equal to the amount of compensation |
11 | for which charges are relieved under this section. For purposes |
12 | of redetermining the rate, the secretary shall use the amount of |
13 | compensation for which charges are relieved under this section |
14 | paid during the five calendar years immediately preceding the |
15 | year in which the redetermination occurs and the amount of wages |
16 | paid, without regard to the exclusion in section 4(x)(1), during |
17 | the same time period by employers who paid a solvency fee under |
18 | this section. The rate as redetermined shall take effect for the |
19 | next calendar year and shall remain in effect for five years. |
20 | (4) If the solvency fee rate redetermined under paragraphs |
21 | (2) and (3) is not a multiple of one-hundredth of one per cent, |
22 | it shall be rounded to the next higher multiple of one-hundredth |
23 | of one per cent. |
24 | (c) Solvency fees paid by employers under this section shall |
25 | be deposited in the Unemployment Compensation Fund. Compensation |
26 | for which charges are relieved under this section shall not be |
27 | used in the calculation of the State adjustment factor under |
28 | section 301.1(e). |
29 | (d) The provisions of this section shall constitute the |
30 | exclusive means by which an employer who makes payments in lieu |
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1 | of contributions pursuant to Article X, XI or XII may be excused |
2 | from reimbursing the Unemployment Compensation Fund for |
3 | compensation paid to an individual that is based on wages paid |
4 | by the employer or that portion of the individual's compensation |
5 | determined in accordance with section 1108. |
6 | (e) A group account under section 1109 shall constitute an |
7 | employer for purposes of this section. |
8 | Section 2. Section 302 of the act, amended March 24, 1964 |
9 | (Sp.Sess., P.L.53, No.1), July 6, 1977 (P.L.41, No.22), July 21, |
10 | 1983 (P.L.68, No.30), December 19, 1996 (P.L.1476, No.189) and |
11 | December 9, 2002 (P.L.1330, No.156), is amended to read: |
12 | Section 302. Establishment and Maintenance of Employer's |
13 | Reserve Accounts.--The department shall establish and maintain |
14 | for each employer a separate employer's reserve account in the |
15 | following manner: |
16 | (a) [(1) Such account shall be credited with all |
17 | contributions paid by such employer for periods subsequent to |
18 | June thirtieth, one thousand nine hundred forty-eight. Such |
19 | account shall be charged with an amount determined by |
20 | multiplying the wages of compensated employes of such employer |
21 | for the twelve month period ended June thirtieth, one thousand |
22 | nine hundred forty-nine, by the state experience heretofore used |
23 | in determining rates of contributions for the year one thousand |
24 | nine hundred forty-nine. Subsequent to January 1, 1984, such] An |
25 | employer's account shall be charged with all compensation, |
26 | including dependents' allowances, paid to each individual who |
27 | received from such employer wage credits constituting the base |
28 | of such compensation, in the proportion that such wage credits |
29 | with such employer bears to the total wage credits received by |
30 | such individual from all employers[: Provided, That if the |
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1 | department finds that such individual was separated from his |
2 | most recent work for such employer due to being discharged for |
3 | willful misconduct connected with such work, or due to his |
4 | leaving such work without good cause attributable to his |
5 | employment, or due to his being separated from such work under |
6 | conditions which would result in disqualification for benefits |
7 | under the provisions of section 3 or section 402(e.1), |
8 | thereafter no compensation paid to such individual with respect |
9 | to any week of unemployment occurring subsequent to such |
10 | separation, which is based upon wages paid by such employer with |
11 | respect to employment prior to such separation, shall be charged |
12 | to such employer's account under the provisions of this |
13 | subsection (a); provided, such employer has filed a notice with |
14 | the department in accordance with its rules and regulations and |
15 | within the time limits prescribed therein; and provided if the |
16 | department finds that such individual's unemployment is directly |
17 | caused by a major natural disaster declared by the President |
18 | pursuant to section 102(1) of the Disaster Relief Act of 1970 |
19 | (P.L.91-606) and such individual would have been eligible for |
20 | disaster unemployment assistance as provided in section 240 of |
21 | that act with respect to such unemployment but for the receipt |
22 | of unemployment compensation, no compensation paid to such |
23 | individual with respect to any week of unemployment occurring |
24 | due to such natural disaster, to a maximum of the eight weeks |
25 | immediately following the President's declaration of emergency, |
26 | shall be charged to the employer's account under the provisions |
27 | of this subsection. |
28 | (2) Notwithstanding the provisions of paragraph (1) of this |
29 | subsection, if the department finds that an individual |
30 | subsequent to separation from his work is engaged in part-time |
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1 | work for a base year employer, other than a base year employer |
2 | from whom he has separated, compensation paid to such individual |
3 | with respect to any week of unemployment occurring subsequent to |
4 | such separation and while such part-time work continues without |
5 | material change, shall not be charged to the account of such |
6 | part-time employer; provided, such part-time employer has filed |
7 | a notice with the department in accordance with its rules and |
8 | regulations and within the time limits prescribed therein. |
9 | (2.1) Notwithstanding the provisions of paragraph (1) of |
10 | this subsection, if the department finds that an individual was |
11 | separated from his most recent work for such employer due to a |
12 | cessation of business of eighteen months or less caused by a |
13 | disaster, compensation paid to such individual with respect to |
14 | any week of unemployment occurring subsequent to such separation |
15 | shall not be charged to the account of such employer; provided, |
16 | such employer has filed a notice with the department in |
17 | accordance with its rules and regulations and within the time |
18 | limits prescribed therein. |
19 | (3) The findings and determinations of the department under |
20 | this subsection (a) shall be subject to appeal in the manner |
21 | provided in this act for appeals from determinations of |
22 | compensation: Provided, That where the individual's eligibility |
23 | for compensation has been finally determined under the |
24 | provisions of Article V of this act, such determination shall |
25 | not be subject to attack in proceedings under this section. |
26 | (4) The reserve account of any employer who pays |
27 | contributions under this section shall not be charged with |
28 | respect to benefits paid to any individual whose base period |
29 | wages include wages for previously uncovered services as defined |
30 | in section 401(g) to the extent that the unemployment insurance |
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1 | fund is reimbursed for such benefits pursuant to section 121 of |
2 | Public Law 94-566]. |
3 | (b) Any employer, at any time, may voluntarily pay into the |
4 | Unemployment Compensation Fund an amount in excess of the |
5 | contributions required to be paid under the provisions of this |
6 | act, and such amount shall be forthwith credited to his reserve |
7 | account. His rate of contribution shall be computed or |
8 | recomputed, as the case may be, with such amount included in the |
9 | calculation. To affect such employer's rate of contribution for |
10 | any year, such amount shall be paid not later than thirty days |
11 | following the mailing of notice of his rate of contribution for |
12 | such year: Provided, That for good cause, such time may be |
13 | extended by the department: And provided further, That such |
14 | amount, when paid as aforesaid, shall not be refunded or used as |
15 | a credit in the payment of contributions in whole or in part. In |
16 | no event shall any such amount be included in the computation or |
17 | recomputation for any year unless it is paid within one hundred |
18 | twenty days after the beginning of such year. |
19 | (c) (1) For the purpose of determining any employer's rate |
20 | of contribution for any year, the phrase "balance in an |
21 | employer's reserve account" as used in sections 301, 301.1 and |
22 | 301.2 of this act shall mean the amount ascertained as of the |
23 | computation date by subtracting the amounts charged to his |
24 | reserve account from the amounts credited thereto including |
25 | voluntary contributions. If, as of the computation date, the |
26 | amounts charged to his reserve account exceed the amounts |
27 | credited by an amount equivalent to more than twenty per centum |
28 | (20%) of his average annual payroll, the employer may elect, |
29 | subject to the provisions of section 301.1(f) of this act to |
30 | have his reserve account balance adjusted to a negative balance |
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1 | equal to twenty per centum (20%) of his average annual payroll. |
2 | This subsection as amended shall apply to elections made after |
3 | December 31, 1986. |
4 | (2) Notwithstanding the provisions of section 301.1(f) and |
5 | paragraph (1) of this subsection, for elections made on or after |
6 | January 1, 1984 and before May 1, 1986, if the amounts charged |
7 | to the employer's reserve account exceed the amounts credited by |
8 | an amount equivalent to more than ten per centum (10%) of his |
9 | average annual payroll, the department, after determining his |
10 | Reserve Ratio Factor shall, upon the election of the employer, |
11 | adjust his reserve account balance to a negative balance equal |
12 | to ten per centum (10%) of his average annual payroll. With |
13 | respect to future adjustments of negative balance accounts, the |
14 | secretary shall, upon the election of the employer, make |
15 | adjustments as follows: |
16 | (i) In relation to adjustments made for the second time |
17 | after January 1, 1984 and before May 1, 1986, if the amounts |
18 | charged to his reserve account exceed the amounts credited by an |
19 | amount equivalent to more than fifteen per centum (15%) of his |
20 | average annual payroll, the department shall, upon the election |
21 | of the employer, adjust the reserve account balance to a |
22 | negative balance equal to fifteen per centum (15%) of his |
23 | average annual payroll. |
24 | (ii) In relation to adjustments made for the third time |
25 | after January 1, 1984 and before May 1, 1986, if the amounts |
26 | charged to his reserve account exceed the amounts credited by an |
27 | amount equivalent to more than twenty per centum (20%) of his |
28 | average annual payroll, the department shall, upon the election |
29 | of the employer, adjust his reserve account balance to a |
30 | negative balance equal to twenty per centum (20%) of his average |
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1 | annual payroll. |
2 | (d) The department shall terminate the reserve account of |
3 | any employer who has not paid contributions for a period of four |
4 | consecutive twelve month periods, ending June thirtieth in any |
5 | year. |
6 | (e) Nothing contained in this act shall be construed to |
7 | grant to any employer any claim or right of withdrawal with |
8 | respect to any amount allocated to him from, or paid by him |
9 | into, the Unemployment Compensation Fund, except as provided in |
10 | section three hundred eleven hereof. |
11 | Section 3. The act is amended by adding a section to read: |
12 | Section 302.1. Relief from Charges.--Notwithstanding any |
13 | other provisions of this act assigning charges for compensation |
14 | paid to employes, the department shall relieve an employer of |
15 | charges for compensation in accordance with this section and |
16 | section 213 of this act. |
17 | (a) Circumstances allowing relief: |
18 | (1) If an individual was separated from his most recent work |
19 | for an employer due to being discharged for willful misconduct |
20 | connected with that work, or due to his leaving that work |
21 | without good cause attributable to his employment, or due to his |
22 | being separated from such work under conditions which would |
23 | result in disqualification for benefits under the provisions of |
24 | section 3 or section 402(e.1), the employer shall be relieved of |
25 | charges for compensation paid to the individual with respect to |
26 | any week of unemployment occurring subsequent to such |
27 | separation. Relief from charges under this paragraph terminates |
28 | if the employe returns to work for the employer. |
29 | (2) If an individual's unemployment is directly caused by a |
30 | major natural disaster declared by the President of the United |
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1 | States pursuant to section 102(1) of the Disaster Relief Act of |
2 | 1970 (Public Law 91-606, 42 U.S.C. § 4401 et seq.) and the |
3 | individual would have been eligible for disaster unemployment |
4 | assistance as provided in section 240 of the Disaster Relief Act |
5 | of 1970 with respect to that unemployment but for the receipt of |
6 | unemployment compensation, an employer shall be relieved of |
7 | charges for compensation paid to such individual with respect to |
8 | any week of unemployment occurring due to the natural disaster, |
9 | to a maximum of the eight weeks immediately following the |
10 | declaration of emergency by the President of the United States. |
11 | (3) If an individual subsequent to separation from his work |
12 | is engaged in part-time work for a base year employer, other |
13 | than a base year employer from whom he has separated, the part- |
14 | time employer shall be relieved of charges for compensation paid |
15 | to the individual with respect to any week of unemployment |
16 | occurring subsequent to the separation and while such part-time |
17 | work continues without material change. |
18 | (4) If the department finds that an individual was separated |
19 | from his most recent work for an employer due to a cessation of |
20 | business of eighteen months or less caused by a disaster, the |
21 | employer may be relieved of charges for compensation paid to |
22 | such individual with respect to any week of unemployment |
23 | occurring subsequent to that separation. Relief from charges |
24 | under this paragraph terminates if the employe returns to work |
25 | for the employer. |
26 | (b) Requests for relief from charges: |
27 | (1) Except as provided in subsection (c), in order to be |
28 | granted relief from charges for compensation an employer must |
29 | file a request with the department in the manner provided, and |
30 | containing all information required, by the department's |
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1 | regulations. |
2 | (2) If an employer is requesting relief from charges on the |
3 | basis of a separation that occurs on or before the date the |
4 | claimant files an application for benefits or on the basis of |
5 | continuing part-time work, the following shall apply: |
6 | (i) If the request is filed within fifteen (15) days after |
7 | the date of the earliest notice issued by the department under |
8 | section 501(a) indicating that the claimant is eligible under |
9 | section 401(a) and relief is granted, relief shall begin with |
10 | the earliest week for which the claimant is eligible for |
11 | benefits pursuant to the claimant's application for benefits. |
12 | (ii) If the request is not filed within the time period |
13 | provided in subparagraph (i), relief, if granted by the |
14 | department, shall begin with the earliest week ending fifteen |
15 | (15) or more days subsequent to the date the request is filed. |
16 | (3) If an employer is requesting relief from charges on the |
17 | basis of a separation that occurs after the claimant files an |
18 | application for benefits, the following shall apply: |
19 | (i) If the request is filed within fifteen (15) days after |
20 | the date of the earliest notice issued by the department |
21 | indicating that the claimant is claiming benefits subsequent to |
22 | the separation and relief is granted, relief shall begin with |
23 | the earliest week for which the claimant is eligible for |
24 | benefits following the last day worked. |
25 | (ii) If the request is not filed within the time period |
26 | provided in subparagraph (i), relief, if granted by the |
27 | department, shall begin with the earliest week ending fifteen |
28 | (15) or more days subsequent to the date the request is filed. |
29 | (c) Relief from charges without a request: |
30 | (1) If a claimant is determined ineligible for benefits |
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1 | under section 3 or section 402(b), (e) or (e.1) pursuant to a |
2 | notice of determination that has become final, the department |
3 | shall grant relief from charges in accordance with subsection |
4 | (a)(1) to the employer from whom the claimant was separated, |
5 | beginning with the earliest week for which the claimant is |
6 | eligible for benefits following the week or weeks governed by |
7 | the notice of determination. |
8 | (2) If a claimant is determined eligible for benefits under |
9 | section 402(b) pursuant to a notice of determination that has |
10 | become final, the department shall grant or deny relief from |
11 | charges in accordance with subsection (a)(1) to the employer |
12 | from whom the claimant was separated, beginning with the |
13 | earliest week governed by the notice of determination, in |
14 | accordance with the following: |
15 | (i) The department shall grant relief from charges if the |
16 | claimant left work for the employer without good cause |
17 | attributable to the claimant's employment. |
18 | (ii) The department shall deny relief from charges if the |
19 | claimant left work for the employer with good cause attributable |
20 | to the claimant's employment. |
21 | (3) Relief from charges granted to an employer remains in |
22 | effect for the purpose of benefits paid to the claimant pursuant |
23 | to a subsequent application for benefits if the relief has not |
24 | terminated in accordance with the provisions of this section. |
25 | (d) Employer information: |
26 | (1) An employer that is granted relief from charges on the |
27 | basis of a claimant's separation from employment shall notify |
28 | the department within fifteen (15) days if the claimant returns |
29 | to work for the employer. The employer shall include with the |
30 | notification the claimant's name and Social Security number, the |
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1 | employer's name and account number and the date when |
2 | reemployment commenced. |
3 | (2) An employer that is granted relief from charges on the |
4 | basis of continuing part-time work shall notify the department |
5 | within fifteen (15) days if the employment situation of the |
6 | claimant changes. The employer shall include with the |
7 | notification the claimant's name and Social Security number and |
8 | the employer's name and account number. |
9 | (e) General provisions: |
10 | (1) Where the individual's eligibility for compensation has |
11 | been finally determined under the provisions of Article V, such |
12 | determination shall not be subject to attack in proceedings |
13 | under this section. |
14 | (2) The findings and determinations of the department under |
15 | this section shall be subject to appeal in the manner provided |
16 | in this act for appeals from determinations of compensation. |
17 | Section 4. Section 401(b) of the act, amended July 9, 1976 |
18 | (P.L.842, No.147), is amended to read: |
19 | Section 401. Qualifications Required to Secure |
20 | Compensation.--Compensation shall be payable to any employe who |
21 | is or becomes unemployed, and who-- |
22 | * * * |
23 | (b) [Has registered for work at, and thereafter continued to |
24 | report to an employment office in accordance with such |
25 | regulations as the secretary may prescribe, except that the |
26 | secretary may by regulation waive or alter either or both of the |
27 | requirements of this clause as to individuals attached to |
28 | regular jobs and as to such other types of cases or situations |
29 | with respect to which he finds that compliance with such |
30 | requirements would be oppressive or would be inconsistent with |
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1 | the purposes of the act: Provided, however, That no such |
2 | regulation shall conflict with section four hundred and one (c) |
3 | of this act;] |
4 | (1) Is making an active search for suitable employment. The |
5 | requirements for "active search" shall be established by the |
6 | department and shall include, at a minimum, all of the |
7 | following: |
8 | (i) Registration by a claimant for employment search |
9 | services offered by the Pennsylvania CareerLink system or its |
10 | successor agency within thirty (30) days after initial |
11 | application for benefits. |
12 | (ii) Posting a resume on the system's database, unless the |
13 | claimant is seeking work in an employment sector in which |
14 | resumes are not commonly used. |
15 | (iii) Applying for positions that offer employment and wages |
16 | similar to those the claimant had prior to his unemployment and |
17 | which are within a forty-five (45) minute commuting distance. |
18 | (2) The Pennsylvania CareerLink system or its successor |
19 | agency shall provide documentation, on a quarterly basis or more |
20 | frequently, as the secretary deems appropriate, to the |
21 | Pennsylvania Unemployment Compensation Service Center system so |
22 | the system can conduct the necessary cross reference checks. |
23 | (3) For the purposes of paragraph (1), the department may |
24 | determine that a claimant has made an active search for suitable |
25 | work if the claimant's efforts include actions comparable to |
26 | those traditional actions in their trade or occupation by which |
27 | jobs have been found by others in the community and labor market |
28 | in which the claimant is seeking employment. |
29 | (4) The requirements of this subsection do not apply to any |
30 | week in which the claimant is in training approved under section |
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1 | 236(a)(1) of the Trade Act of 1974 (Public Law 93-618, 19 U.S.C. |
2 | § 2101 et seq.) or any week in which the claimant is required to |
3 | participate in reemployment services under section 402(j). |
4 | (5) The requirements of this subsection shall not apply to a |
5 | claimant who is laid off for lack of work and advised by the |
6 | employer of the date on which the claimant will return to work. |
7 | (6) The department may waive or alter the requirements of |
8 | this subsection in cases or situations with respect to which the |
9 | secretary finds that compliance with such requirements would be |
10 | oppressive or which would be inconsistent with the purposes of |
11 | this act. |
12 | * * * |
13 | Section 4.1. Section 402(b) and (e) of the act, amended | <-- |
14 | August 24, 1953 (P.L.1397, No.396) and October 22, 1981 |
15 | (P.L.301, No.106), are amended to read: |
16 | Section 402. Ineligibility for Compensation.--An employe |
17 | shall be ineligible for compensation for any week-- |
18 | * * * |
19 | (b) In which his unemployment is due to voluntarily leaving |
20 | work without cause of a necessitous and compelling nature |
21 | attributable to his employment, irrespective of whether or not |
22 | such work is in "employment" as defined in this act: Provided, |
23 | That a voluntary leaving work because of a work-related |
24 | disability if the employer is able to provide other suitable |
25 | work, shall be deemed not a cause of a necessitous and |
26 | compelling nature attributable to his employment: And provided |
27 | further, That no employe shall be deemed to be ineligible under |
28 | this subsection where the Federal Unemployment Tax Act requires |
29 | eligibility, and provided that no employe shall be deemed |
30 | ineligible under this subsection if the employe is a spouse of a |
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1 | full-time member of the United States Armed Forces or a full- |
2 | time member of any of its reserve components, including the |
3 | Pennsylvania National Guard, and the employe is leaving |
4 | employment due to the reassignment of the military member to a |
5 | different geographical location: And provided further, That no |
6 | employe shall be deemed to be ineligible under this subsection |
7 | where as a condition of continuing in employment such employe |
8 | would be required to join or remain a member of a company union |
9 | or to resign from or refrain from joining any bona fide labor |
10 | organization, or to accept wages, hours or conditions of |
11 | employment not desired by a majority of the employes in the |
12 | establishment or the occupation, or would be denied the right of |
13 | collective bargaining under generally prevailing conditions, and |
14 | that in determining whether or not an employe has left his work |
15 | voluntarily without cause of a necessitous and compelling nature |
16 | attributable to his employment, the department shall give |
17 | consideration to the same factors, insofar as they are |
18 | applicable, provided, with respect to the determination of |
19 | suitable work under section four (t): And provided further, That |
20 | the provisions of this subsection shall not apply in the event |
21 | of a stoppage of work which exists because of a labor dispute |
22 | within the meaning of subsection (d). Provided further, That no |
23 | otherwise eligible claimant shall be denied benefits for any |
24 | week in which his unemployment is due to exercising the option |
25 | of accepting a layoff, from an available position pursuant to a |
26 | labor-management contract agreement, or pursuant to an |
27 | established employer plan, program or policy: Provided further, |
28 | That a claimant shall not be disqualified for voluntarily |
29 | leaving work, which is not suitable employment to enter training |
30 | approved under section 236(a)(1) of the Trade Act of 1974. For |
|
1 | purposes of this subsection the term "suitable employment" means |
2 | with respect to a claimant, work of a substantially equal or |
3 | higher skill level than the claimant's past "adversely affected |
4 | employment" (as defined in section 247 of the Trade Act of |
5 | 1974), and wages for such work at not less than eighty per |
6 | centum of the worker's "average weekly wage" (as defined in |
7 | section 247 of the Trade Act of 1974). |
8 | * * * |
9 | (e) In which his unemployment is due to his discharge or |
10 | temporary suspension from work for willful misconduct connected |
11 | with his work, irrespective of whether or not such work is |
12 | "employment" as defined in this act[; and]. For purposes of this |
13 | subsection, the term "willful misconduct" shall include, but is |
14 | not limited to, the violation of any reasonable workplace rule |
15 | or work-related government regulation or law of which the |
16 | employe was aware; failure to maintain a valid license or |
17 | certificate that has been issued by a Federal or Commonwealth |
18 | agency or political subdivision and which is a requirement of |
19 | employment; the deliberate damage to property of the employer or |
20 | another employe or the theft of an employer's or another |
21 | employe's property; reporting to work under the influence of |
22 | illegal drugs or alcohol; threatening a coworker or supervisor |
23 | with physical harm or threatening to harm the interests of the |
24 | employer; disregard of supervisor's reasonable directives or |
25 | orders and acts of negligence or an act of negligence which |
26 | indicates substantial disregard for employer's interests. |
27 | * * * |
28 | Section 5. Section 404 introductory paragraph, (a) 404(a), | <-- |
29 | (c), (d) and (e)(2) of the act, amended March 24, 1964 (1st Sp. | <-- |
30 | Sess. P.L.53, No.1), January 17, 1968 (P.L.21, No.6), July 10, |
|
1 | 1980 (P.L.521, No.108), July 21, 1983 (P.L.68, No.30), October |
2 | 19, 1988 (P.L.818, No.109) and December 16, 2005 (P.L.437, |
3 | No.80), are amended to read: |
4 | Section 404. Rate and Amount of Compensation.--Compensation |
5 | shall be paid to each eligible employe in accordance with the |
6 | following provisions of this section except that compensation |
7 | payable with respect to weeks ending in benefit years which |
8 | begin prior to the first day of January [1989] 2013 shall be | <-- |
9 | paid on the basis of the provisions of this section in effect at |
10 | the beginning of such benefit years. |
11 | * * * | <-- |
12 | (a) (1) The employe's weekly benefit rate shall be computed | <-- |
13 | as (1) the amount appearing in Part B of the Table Specified for |
14 | the Determination of Rate and Amount of Benefits on the line on |
15 | which in Part A there appears his "highest quarterly wage," or |
16 | (2) fifty per centum (50%) of his full-time weekly wage, |
17 | whichever is greater. Notwithstanding any other provision of |
18 | this act, if an employe's weekly benefit rate, as calculated |
19 | under this paragraph, is less than $70, he shall be ineligible |
20 | to receive any amount of compensation. If the employe's weekly |
21 | benefit rate is not a multiple of one dollar ($1), it shall be |
22 | rounded to the next lower multiple of one dollar ($1). |
23 | (2) If the base year wages of an employe whose weekly |
24 | benefit rate has been determined under clause (2) of paragraph |
25 | (1) of this subsection are insufficient to qualify him under |
26 | subsection (c) of this section, his weekly benefit rate shall be |
27 | redetermined under clause (1) of paragraph (1) of this |
28 | subsection. |
29 | (3) If the base year wages of an employe whose weekly |
30 | benefit rate has been determined under clause (1) of paragraph |
|
1 | (1) of this subsection, or redetermined under paragraph (2) of |
2 | this subsection, as the case may be, are insufficient to qualify |
3 | him under subsection (c) of this section but are sufficient to |
4 | qualify him for any one of the next three lower weekly benefit |
5 | rates, his weekly benefit rate shall be redetermined at the |
6 | highest of such next lower rates. |
7 | * * * |
8 | (c) [Any] The total amount of benefits to which an otherwise |
9 | eligible employe who has base year wages in an amount equal to, |
10 | or in excess, of the amount of qualifying wages appearing in |
11 | Part C of the Table Specified for the Determination of Rate and |
12 | Amount of Benefits on the line on which in Part B there appears |
13 | his weekly benefit rate, as determined under subsection (a) of |
14 | this section, shall be entitled during his benefit year to the |
15 | amount appearing in Part [D] B on said line multiplied by the |
16 | number of qualifying credit weeks during his base year, up to a |
17 | maximum of twenty-six (26): Provided he had eighteen (18) or |
18 | more "credit weeks" during his base year [or Part E provided he |
19 | had sixteen (16) or seventeen (17) "credit weeks" during his |
20 | base year]. Notwithstanding any other provision of this act, any |
21 | employe with less than [sixteen (16)] eighteen (18) "credit |
22 | weeks" during the employe's base year shall be ineligible to |
23 | receive any amount of compensation. |
24 | (d) (1) Notwithstanding any other provisions of this |
25 | section each eligible employe who is unemployed with respect to |
26 | any week ending subsequent to July 1, 1980 shall be paid, with |
27 | respect to such week, compensation in an amount equal to his |
28 | weekly benefit rate less the total of (i) the remuneration, if |
29 | any, paid or payable to him with respect to such week for |
30 | services performed which is in excess of his partial benefit |
|
1 | credit [and], (ii) vacation pay, if any, which is in excess of |
2 | his partial benefit credit, except when paid to an employe who |
3 | is permanently or indefinitely separated from his employment[.] |
4 | and (iii) the amount of severance pay that is attributed to the |
5 | week. |
6 | (1.1) For purposes of clause (1)(iii), all of the following |
7 | apply: |
8 | (i) "Severance pay" means one or more payments made by an |
9 | employer to an employe on account of separation from the service |
10 | of the employer, regardless of whether the employer is legally |
11 | bound by contract, statute or otherwise to make such payments. |
12 | The term does not include payments for pension, retirement or |
13 | accrued leave or payments of supplemental unemployment benefits. |
14 | (ii) The amount of severance pay attributed pursuant to |
15 | subclause (iii) shall be an amount not less than zero determined |
16 | by subtracting one-half one-fourth forty per centum (40%) of the | <-- |
17 | average annual wage as calculated under subsection (e) as of |
18 | June 30 immediately preceding the calendar year in which the |
19 | claimant's benefit year begins from the total amount of |
20 | severance pay paid or payable to the claimant by the employer. |
21 | (iii) Severance pay is attributed as follows: |
22 | (A) Severance pay is attributed to the day, days, week or |
23 | weeks immediately following the employe's separation. |
24 | (B) The number of days or weeks to which severance pay is |
25 | attributed is determined by dividing the total amount of |
26 | severance pay by the regular full-time daily or weekly wage of |
27 | the claimant. |
28 | (C) The amount of severance pay attributed to each day or |
29 | week equals the regular full-time daily or weekly wage of the |
30 | claimant. |
|
1 | (D) When the attribution of severance pay is made on the |
2 | basis of the number of days, the pay shall be attributed to the |
3 | customary working days in the calendar week. |
4 | (2) (i) In addition to the deductions provided for in |
5 | clause (1), for any week with respect to which an individual is |
6 | receiving a pension, including a governmental or other pension, |
7 | retirement or retired pay, annuity or any other similar periodic |
8 | payment, under a plan maintained or contributed to by a base |
9 | period or chargeable employer, the weekly benefit amount payable |
10 | to such individual for such week shall be reduced, but not below |
11 | zero, by the pro-rated weekly amount of the pension as |
12 | determined under subclause (ii). |
13 | (ii) If the pension is entirely contributed to by the |
14 | employer, then one hundred per centum (100%) of the pro-rated |
15 | weekly amount of the pension shall be deducted. Except as set |
16 | forth in clause (4), if the pension is contributed to by the |
17 | individual, in any amount, then fifty per centum (50%) of the |
18 | pro-rated weekly amount of the pension shall be deducted. |
19 | (iii) No deduction shall be made under this clause by reason |
20 | of the receipt of a pension if the services performed by the |
21 | individual during the base period or remuneration received for |
22 | such services for such employer did not affect the individual's |
23 | eligibility for, or increase the amount of, such pension, |
24 | retirement or retired pay, annuity or similar payment. |
25 | (3) The provisions of this subsection shall be applicable |
26 | whether or not such vacation pay, retirement pension or |
27 | annuities or wages are legally required to be paid. If such |
28 | retirement pension or annuity payments deductible under the |
29 | provisions of this subsection are received on other than a |
30 | weekly basis, the amount thereof shall be allocated and pro- |
|
1 | rated in accordance with the rules and regulations of the |
2 | department. Vacation pay or other remuneration deductible under |
3 | the provisions of this subsection shall be pro-rated on the |
4 | basis of the employe's normal full-time weekly wage and as so |
5 | pro-rated shall be allocated to such period or periods of |
6 | unemployment as shall be determined by rules and regulations of |
7 | the department. Such compensation, if not a multiple of one |
8 | dollar ($1), shall be computed to the next lower multiple of one |
9 | dollar ($1). |
10 | (4) No deductions shall be made under this subsection for |
11 | pensions paid under the Social Security Act (Public Law 74-271, |
12 | 42 U.S.C. § 301 et seq.), or the Railroad Retirement Act of 1974 |
13 | (Public Law 93-445, 88 Stat. 1305), if the pension is |
14 | contributed to by the individual in any amount. |
15 | (e) * * * |
16 | (2) (i) The Table Specified for the Determination of Rate |
17 | and Amount of Benefits shall be extended or contracted annually, |
18 | automatically by regulations promulgated by the secretary in |
19 | accordance with the following procedure: for calendar year one |
20 | thousand nine hundred seventy-two and for all subsequent |
21 | calendar years, to a point where the maximum weekly benefit rate |
22 | [equals] shall equal sixty-six and two-thirds per centum of the |
23 | average weekly wage for the [twelve-month] thirty-six-month |
24 | period ending June 30 preceding each calendar year. If the |
25 | maximum weekly benefit rate is not a multiple of one dollar |
26 | ($1), it shall be [increased by one dollar ($1) and then] |
27 | rounded to the next lower multiple of one dollar ($1): Provided, |
28 | however, That effective with benefit years beginning the first |
29 | Sunday at least thirty days after the effective date of this |
30 | amendatory act, the per centum stated in this paragraph for |
|
1 | establishing the maximum weekly benefit rate shall be sixty-two |
2 | and two-thirds per centum for the remainder of calendar year one |
3 | thousand nine hundred seventy-four, sixty-four and two-thirds |
4 | per centum for the calendar year one thousand nine hundred |
5 | seventy-five, and sixty-six and two-thirds per centum for the |
6 | calendar year one thousand nine hundred seventy-six and for all |
7 | subsequent calendar years. |
8 | The Table Specified for the Determination of Rate and Amount |
9 | of Benefits as so extended or contracted shall be effective only |
10 | for those claimants whose benefit years begin on or after the |
11 | first day of January of such calendar year. |
12 | (ii) For the purpose of determining the maximum weekly |
13 | benefit rate, the Pennsylvania average weekly wage in covered |
14 | employment shall be computed on the basis of the average annual |
15 | total wages reported (irrespective of the limit on the amount of |
16 | wages subject to contributions) for the [twelve-month] thirty- |
17 | six-month period ending June 30 (determined by dividing the |
18 | total wages reported for the thirty-six-month period by three) |
19 | and this amount shall be divided by the average monthly number |
20 | of covered workers (determined by dividing the total covered |
21 | employment reported for the same [fiscal year by twelve] thirty- |
22 | six-month period by thirty-six) to determine the average annual |
23 | wage. The average annual wage thus obtained shall be divided by |
24 | fifty-two and the average weekly wage thus determined rounded to |
25 | the nearest cent. If the maximum weekly benefit rate as | <-- |
26 | determined under subclause (i) is less than the maximum weekly |
27 | benefit rate established for calendar year 2012, the maximum |
28 | weekly benefit rate will be frozen until the calendar year in |
29 | which the new maximum weekly benefit rate as determined under |
30 | subclause (i) exceeds the maximum weekly benefit rate for |
|
1 | calendar year 2012. For the calendar year 2012, the maximum | <-- |
2 | weekly benefit rate shall be frozen at the rate calculated for |
3 | calendar year 2011. |
4 | (iii) Notwithstanding the provisions of subclause (i), the | <-- |
5 | for the calendar year 2012, the maximum weekly benefit rate | <-- |
6 | shall be frozen at the rate calculated for calendar year 2011. |
7 | Thereafter, the maximum weekly benefit rate established: |
8 | (A) For calendar year 2013, shall be no greater than a one |
9 | per centum (1%) increase above the calendar year 2012 rate. |
10 | (B) For calendar year 2014, shall be no greater than a one |
11 | and one-tenth per centum (1.1%) increase above the calendar year |
12 | 2013 rate. |
13 | (C) For calendar year 2015, shall be no greater than a one |
14 | and two-tenths per centum (1.2%) increase above the calendar |
15 | year 2014 rate. |
16 | (D) For calendar year 2016, shall be no greater than a one |
17 | and three-tenths per centum (1.3%) increase above the calendar |
18 | year 2015 rate. |
19 | (E) For calendar year 2017, shall be no greater than one and |
20 | four-tenths per centum (1.4%) increase above the calendar year |
21 | 2016 rate. |
22 | (F) For calendar year 2018, shall be no greater increase |
23 | than one and five-tenths per centum (1.5%) increase above the |
24 | calendar year 2017 rate. |
25 | The limitations instituted for calendar years 2013 through 2018 |
26 | shall expire on the earlier to occur of December 31, 2018 or the |
27 | last day of the calendar year in which the unemployment |
28 | Compensation trust fund does not have an outstanding solvency- | <-- |
29 | based debt to the United States government. |
30 | (iv) If the change implemented by the freeze in calendar | <-- |
|
1 | year 2012 is determined by the department, in an official notice |
2 | to the General Assembly, to result in the loss of funds under |
3 | the American Recovery and Reinvestment Act of 2009 (Public Law |
4 | 111-5, 123 Stat. 115), the schedule under subclause (iii) shall |
5 | occur one year later and the expiration of the limitations set |
6 | forth in subclause (iii) shall occur one year later. |
7 | * * * |
8 | Section 6. Section 401-A(b) and (c) of the act, amended |
9 | August 4, 2009 (P.L.114, No.30), are amended to read: |
10 | Section 401-A. Definitions.--As used in this article: |
11 | * * * |
12 | (b) (1) There is a "State 'on' indicator" for this State |
13 | for a week if the Secretary of Labor and Industry determines in |
14 | accordance with the regulations of the United States Secretary |
15 | of Labor, that for the period consisting of such week and the |
16 | immediately preceding twelve weeks, the rate of insured |
17 | unemployment (not seasonally adjusted) under this act: |
18 | (i) (A) equaled or exceeded one hundred twenty per centum |
19 | of the average of such rates for the corresponding thirteen-week |
20 | period ending in each of the preceding two calendar years, or |
21 | (B) with respect to compensation for weeks of unemployment |
22 | beginning after December 17, 2010, and ending on or before |
23 | December 31, 2011, equaled or exceeded one hundred twenty per |
24 | centum of the average of such rates for the corresponding |
25 | thirteen-week period ending in each of the preceding three |
26 | calendar years, and |
27 | (ii) equaled or exceeded five per centum: Provided, That |
28 | with respect to benefits for weeks of unemployment beginning |
29 | with the passage of this amendment but no earlier than April 3, |
30 | 1977, the determination of whether there has been a State "on" |
|
1 | or "off" indicator beginning or ending any extended benefit |
2 | period shall be made under this paragraph as if (A) this |
3 | paragraph did not contain subparagraph (i) thereof, and (B) the |
4 | per centum rate indicated in this paragraph were six, except |
5 | that, notwithstanding any such provision of this paragraph, 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 | (2) There is a "State 'off' indicator" for this State for a |
10 | week if the Secretary of Labor and Industry determines in |
11 | accordance with the regulations of the United States Secretary |
12 | of Labor, that for the period consisting of such week and the |
13 | immediately preceding twelve weeks, the rate of insured |
14 | unemployment (not seasonally adjusted) under this act: |
15 | (i) was less than one hundred twenty per centum of the |
16 | average of such rates for the corresponding thirteen-week period |
17 | ending in each of the preceding two calendar years, if paragraph |
18 | (1)(i)(A) applies or, the preceding three calendar years, if |
19 | paragraph (1)(i)(B) applies, or |
20 | (ii) was less than five per centum. |
21 | (3) Notwithstanding the provisions of this subsection, any |
22 | week for which there would otherwise be a State "on" indicator |
23 | shall continue to be such a week and shall not be determined to |
24 | be a week for which there is a State "off" indicator. |
25 | (c) (1) There is a "State 'on' indicator" for this State |
26 | for a week if: |
27 | (i) the average rate of total unemployment in this State, |
28 | seasonally adjusted, for the period consisting of the most |
29 | recent three months for which data for all states are published |
30 | before the close of such week equals or exceeds six and one-half |
|
1 | per centum; and |
2 | (ii) (A) the average rate of total unemployment in this |
3 | State, seasonally adjusted, for the three-month period referred |
4 | to in subparagraph (i) equals or exceeds one hundred ten per |
5 | centum of such average rate for either, or both, of the |
6 | corresponding three-month periods ending in the two preceding |
7 | calendar years, or |
8 | (B) with respect to compensation for weeks of unemployment |
9 | beginning after December 17, 2010, and ending on or before |
10 | December 31, 2011, the average rate of total unemployment in |
11 | this State, seasonally adjusted, for the three-month period |
12 | referred to in subparagraph (i) equals or exceeds one hundred |
13 | ten per centum of such average rate for any, or all, of the |
14 | corresponding three-month periods ending in the three preceding |
15 | calendar years. |
16 | (2) There is a State "off" indicator for this State for a |
17 | week if the requirements of paragraph (1)(i) or (ii) are not |
18 | satisfied. |
19 | (3) This subsection shall be applicable only with respect to |
20 | weeks of unemployment for which one hundred per centum Federal |
21 | sharing of extended benefits is available under section 2005(a) |
22 | of the American Recovery and Reinvestment Act of 2009 (Public |
23 | Law 111-5, 123 Stat. 115), without regard to the extension of |
24 | Federal sharing for certain claims as provided under section |
25 | 2005(c) of the American Recovery and Reinvestment Act of 2009, |
26 | or under a subsequently enacted provision of Federal law. |
27 | (4) Notwithstanding the provisions of this subsection, any |
28 | week for which there would otherwise be a State "on" indicator |
29 | shall continue to be such a week and shall not be determined to |
30 | be a week for which there is a State "off" indicator. |
|
1 | (5) For purposes of this subsection, determinations of the |
2 | rate of total unemployment for any period, and of any seasonal |
3 | adjustment, shall be made by the United States Secretary of |
4 | Labor. |
5 | * * * |
6 | Section 7. Section 505 of the act, amended April 23, 1942 |
7 | (Sp.Sess., P.L.60, No.23), is amended to read: |
8 | Section 505. Rules of Procedure.--The manner in which |
9 | appeals shall be taken, the reports thereon required from the |
10 | department, the claimant and employers, and the conduct of |
11 | hearings and appeals, shall be in accordance with rules of |
12 | procedure prescribed by the board whether or not such rules |
13 | conform to common law or statutory rules of evidence and other |
14 | technical rules of procedure. Rules established by the board |
15 | shall permit either party to a hearing to testify via telephone, |
16 | without regard to distance of hearing location from either |
17 | party. |
18 | When the same or substantially similar evidence is relevant |
19 | and material to the matter in issue in applications and claims |
20 | filed by more than one individual or in multiple applications |
21 | and claims filed by a single individual the same time and place |
22 | for considering each such application and claim may be fixed, |
23 | hearings thereon jointly conducted, a single record of the |
24 | proceedings made and evidence introduced with respect to any |
25 | application or claim considered as introduced with respect to |
26 | all of such applications or claims: Provided, That in the |
27 | judgment of the board or referee having jurisdiction of the |
28 | proceeding such consideration will not be prejudicial to any |
29 | party. |
30 | Section 8. The act is amended by adding an article to read: |
|
1 | ARTICLE XIII |
2 | SHARED-WORK PROGRAM |
3 | Section 1301. Definitions. |
4 | The following words and phrases when used in this act shall |
5 | have the meanings given to them in this section unless the |
6 | context clearly indicates otherwise: |
7 | "Affected unit." A department, shift or other organizational |
8 | unit of two or more employees that is designated by an employer |
9 | to participate in a shared-work plan. |
10 | "Approved shared-work plan." An employer's shared-work plan |
11 | which meets the requirements of section 1303 and which the |
12 | department approves in writing. |
13 | "Fringe benefit." Health insurance, a retirement benefit |
14 | received under a pension plan, a paid vacation day, a paid |
15 | holiday, sick leave and any other similar employee benefit |
16 | provided by an employer. |
17 | "Participating employee." An employee in the affected unit |
18 | whose hours of work are reduced by the reduction percentage |
19 | under the shared-work plan. |
20 | "Participating employer." An employer who has a shared-work |
21 | plan in effect. |
22 | "Reduction percentage." The percentage by which each |
23 | participating employee's normal weekly hours of work are reduced |
24 | under a shared-work plan in accordance with section 1303(b). |
25 | "Shared-work plan." A plan for reducing unemployment under |
26 | which participating employees of an affected unit share the work |
27 | remaining after reduction in their normal weekly hours of work. |
28 | Section 1302. Application to approve a shared-work plan. |
29 | (a) Requirements.--An employer that meets all of the |
30 | following requirements may apply to the department for approval |
|
1 | of a shared-work plan: |
2 | (1) The employer has filed all quarterly reports and |
3 | other reports required under this act and has paid all |
4 | contribution, reimbursement, interest and penalty due through |
5 | the date of the employer's application. |
6 | (2) If the employer is contributory, the employer's |
7 | reserve account balance as of the most recent computation |
8 | date preceding the date of the employer's application is a |
9 | positive number. |
10 | (3) The employer has paid wages for the 12 consecutive |
11 | calendar quarters preceding the date of the employer's |
12 | application. |
13 | (b) Application.--An application under this section shall be |
14 | made in the manner prescribed by the department and contain all |
15 | information required by the department, including the following: |
16 | (1) The employer's assurance that it will provide |
17 | reports to the department relating to the operation of its |
18 | shared-work plan at the times and in the manner prescribed by |
19 | the department and containing all information required by the |
20 | department, including the number of hours worked each week by |
21 | participating employees. |
22 | (2) The employer's assurance that it will not hire new |
23 | employees in, or transfer employees to, the affected unit |
24 | during the effective period of the shared-work plan. |
25 | (3) The employer's assurance that it will not lay off |
26 | participating employees during the effective period of the |
27 | shared-work plan, or reduce participating employees' hours of |
28 | work by more than the reduction percentage during the |
29 | effective period of the shared-work plan, except in cases of |
30 | holidays, designated vacation periods, equipment maintenance |
|
1 | or similar circumstances. |
2 | (4) A list of the week or weeks within the requested |
3 | effective period of the shared-work plan during which |
4 | participating employees are anticipated to work fewer hours |
5 | than the number of hours determined under section 1303(a)(5) |
6 | due to circumstances included in paragraph (3). |
7 | (5) The employer's certification that the implementation |
8 | of a shared-work plan is in lieu of temporary layoffs that |
9 | would affect at least 10% of the employees in the affected |
10 | unit and would result in an equivalent reduction in work |
11 | hours. |
12 | (6) The employer's assurance that it will abide by all |
13 | terms and conditions of this article. |
14 | (c) Multiple shared-work plans.--An employer may apply to |
15 | the department for approval of more than one shared-work plan. |
16 | Section 1303. Shared-work plan requirements. |
17 | (a) General rule.--The department may approve a shared-work |
18 | plan only if the plan meets all of the following requirements: |
19 | (1) The shared-work plan applies to one affected unit. |
20 | (2) All employees in the affected unit are participating |
21 | employees, except that the following employees may not be |
22 | participating employees: |
23 | (i) An employee who has been employed in the |
24 | affected unit for less than three months prior to the |
25 | date the employer applies for approval of the shared-work |
26 | plan. |
27 | (ii) An employee whose hours of work per week |
28 | determined under paragraph (5) is 40 or more hours. |
29 | (3) There are no fewer than two participating employees, |
30 | determined without regard to corporate officers. |
|
1 | (4) The participating employees are identified by name |
2 | and Social Security number. |
3 | (5) The number of hours a participating employee will |
4 | work each week during the effective period of the shared-work |
5 | plan is determined by the following formula: |
6 | employee's normal weekly hours of |
7 | work x (100% - reduction percentage) |
8 | (6) As a result of a decrease in the number of hours |
9 | worked by each participating employee, there is a |
10 | corresponding reduction in wages. |
11 | (7) If any participating employee is covered by a |
12 | collective bargaining agreement, the shared-work plan is |
13 | approved in writing by the collective bargaining |
14 | representative. |
15 | (8) The shared-work plan does not affect the fringe |
16 | benefits of any participating employee not covered by a |
17 | collective bargaining agreement. |
18 | (9) The effective period of the shared-work plan is not |
19 | more than 52 consecutive weeks. |
20 | (10) The effective period of the shared-work plan |
21 | combined with effective periods of the participating |
22 | employer's prior shared-work plans does not equal more than |
23 | 104 weeks out of a 156-week period. |
24 | (11) The reduction percentage satisfies the requirements |
25 | of subsection (b). |
26 | (b) Reduction percentage.--The reduction percentage under an |
27 | approved shared-work plan shall meet all of the following |
28 | requirements: |
29 | (1) The reduction percentage shall be no less than 20% |
30 | and no more than 40%. |
|
1 | (2) The reduction percentage shall be the same for all |
2 | participating employees. |
3 | (3) The reduction percentage shall not change during the |
4 | period of the shared-work plan unless the plan is modified in |
5 | accordance with section 1308. |
6 | Section 1304. Approval or disapproval of shared-work plan. |
7 | The department shall approve or disapprove a shared-work plan |
8 | no later than 15 days after the date the employer's shared-work |
9 | plan application that meets the requirements of section 1302(b) |
10 | is received by the department. The department's decision shall |
11 | be made in writing and, if the shared-work plan is disapproved, |
12 | shall include the reasons for the disapproval. |
13 | Section 1305. Effective period of shared-work plan. |
14 | (a) Number of weeks.--A shared-work plan is effective for |
15 | the number of consecutive weeks indicated in the employer's |
16 | application, or a lesser number of weeks as approved by the |
17 | department, unless sooner terminated in accordance with section |
18 | 1309. |
19 | (b) Start date.--The effective period of the shared-work |
20 | plan shall begin with the first calendar week following the date |
21 | on which the department approves the plan. |
22 | Section 1306. Criteria for compensation. |
23 | (a) General rule.--Compensation shall be payable to a |
24 | participating employee for a week within the effective period of |
25 | an approved shared-work plan during which the employee works the |
26 | number of hours determined under section 1303(a)(5) for the |
27 | participating employer on the same terms, in the same amount and |
28 | subject to the same conditions that would apply to the |
29 | participating employee without regard to this article, except as |
30 | follows: |
|
1 | (1) A participating employee shall not be required to be |
2 | unemployed within the meaning of section 4(u) or file claims |
3 | for compensation under section 401(c). |
4 | (2) Notwithstanding section 404(d)(1), a participating |
5 | employee shall be paid compensation in an amount equal to the |
6 | product of his weekly benefit rate and the reduction |
7 | percentage, rounded to the next lower whole dollar amount. |
8 | (3) The department shall not deny compensation to a |
9 | participating employee for any week during the effective |
10 | period of the shared-work plan by reason of the application |
11 | of any provision of this act relating to active search for |
12 | work or refusal to apply for or accept work other than work |
13 | offered by the participating employer. |
14 | (4) A participating employee satisfies the requirements |
15 | of section 401(d)(1) if the employee is able to work and is |
16 | available for the employee's normal weekly hours of work with |
17 | the participating employer. |
18 | (b) Equivalent remuneration.--For purposes of subsection |
19 | (a), if a participating employee works fewer hours than the |
20 | number of hours determined under section 1303(a)(5) for the |
21 | participating employer during a week within the effective period |
22 | of the approved shared-work plan, but receives remuneration |
23 | equal to remuneration the employee would have received if the |
24 | employee had worked the number of hours determined under section |
25 | 1303(a)(5), the employee will be deemed to have worked the |
26 | number of hours determined under section 1303(a)(5) during that |
27 | week. |
28 | (c) Inapplicability of article.--A participating employee's |
29 | eligibility for compensation for a week within the effective |
30 | period of an approved shared-work plan shall be determined |
|
1 | without regard to this article under any of the following |
2 | circumstances: |
3 | (1) The employee works fewer hours than the number of |
4 | hours determined under section 1303(a)(5) for the |
5 | participating employer during the week and subsection (b) |
6 | does not apply. |
7 | (2) The employee works more hours than the number of |
8 | hours determined under section 1303(a)(5) for the |
9 | participating employer during the week. |
10 | (3) The employee receives remuneration for the week from |
11 | the participating employer for hours in excess of the number |
12 | of hours determined under section 1303(a)(5). |
13 | Section 1307. Participating employer responsibilities. |
14 | (a) Filing claims.--The department shall establish a |
15 | schedule of consecutive two-week periods within the effective |
16 | period of the shared-work plan. The department may, as |
17 | necessary, include one-week periods in the schedule and revise |
18 | the schedule. At the end of each scheduled period, the |
19 | participating employer shall file claims for compensation for |
20 | the week or weeks within the period on behalf of the |
21 | participating employees. The claims shall be filed no later than |
22 | the last day of the week immediately following the period, |
23 | unless an extension of time is granted by the department for |
24 | good cause. The claims shall be filed in the manner prescribed |
25 | by the department and shall contain all information required by |
26 | the department to determine the eligibility of the participating |
27 | employees for compensation. |
28 | (b) Benefit charges.--Notwithstanding any other provision of |
29 | this act, compensation paid to participating employees for weeks |
30 | within the effective period of an approved shared-work plan will |
|
1 | be charged to the participating employer. |
2 | Section 1308. Modification of an approved shared-work plan. |
3 | An employer may apply to the department for approval to |
4 | modify an approved shared-work plan to meet changed conditions. |
5 | The department shall reevaluate the plan and may approve the |
6 | modified plan if it meets the requirements for approval under |
7 | section 1303. If the modifications cause the shared-work plan to |
8 | fail to meet the requirements for approval, the department shall |
9 | disapprove the proposed modifications. |
10 | Section 1309. Termination of an approved shared-work plan. |
11 | (a) General rule.--The secretary may terminate an approved |
12 | shared-work plan for good cause. |
13 | (b) Good cause.--For purposes of subsection (a), good cause |
14 | includes any of the following: |
15 | (1) The approved shared-work plan is not being executed |
16 | according to its approved terms and conditions. |
17 | (2) The participating employer fails to comply with the |
18 | assurances given in the approved shared-work plan. |
19 | (3) The participating employer or a participating |
20 | employee violates any criteria on which approval of the |
21 | shared-work plan was based. |
22 | (c) Termination by employer.--The employer may terminate an |
23 | approved shared-work plan by written notice to the department. |
24 | Section 1310. Department discretion. |
25 | The decision to approve or disapprove a shared-work plan, to |
26 | approve or disapprove a modification of an approved shared-work |
27 | plan or to terminate an approved shared-work plan will be made |
28 | within the department's discretion. Such decisions are not |
29 | subject to the appeal provisions of Article V. |
30 | Section 1311. Publication of notice. |
|
1 | The department shall transmit to the Legislative Reference |
2 | Bureau for publication in the Pennsylvania Bulletin notice that |
3 | the provisions of this article have been approved by the United |
4 | States Department of Labor as required under section 3304(a)(4) |
5 | (E) of the Federal Unemployment Tax Act (Public Law 86-778, 26 |
6 | U.S.C. § 3304(a)(4)(E)) and section 303(a)(5) of the Social |
7 | Security Act (49 Stat. 620, 42 U.S.C. § 503(a)(5)). |
8 | Section 1312. Severability. |
9 | Notwithstanding any other section of this act, if any |
10 | provision or provisions of this article cause the United States |
11 | Department of Labor to withhold approval of this article as |
12 | required under section 3304(a)(4)(E) of the Federal Unemployment |
13 | Tax Act (Public Law 86-778, 26 U.S.C. § 3304(a)(4)(E)) and |
14 | section 303(a)(5) of the Social Security Act (49 Stat. 620, 42 |
15 | U.S.C. § 503(a)(5)), the department is authorized to permanently |
16 | suspend the provision or provisions. |
17 | Section 1313. Expiration. |
18 | This article shall expire five years from its effective date. |
19 | Section 9. This act shall apply as follows: |
20 | (1) The amendment or addition of sections 213, 302 and |
21 | 302.1, other than section 302.1(c) of the act, shall apply to | <-- |
22 | charges for compensation corresponding to benefit years that |
23 | begin on and after the effective date of sections 213, 302 |
24 | and 302.1 of the act. |
25 | (2) The addition of section 302.1(c)(1) and (2) of the |
26 | act shall apply to notices of determination regarding |
27 | eligibility for benefits that are issued on or after the date |
28 | of implementation of the Department of Labor and Industry's |
29 | system to provide relief from charges without an employer |
30 | request, as announced by the Secretary of Labor and Industry |
|
1 | in a notice published in the Pennsylvania Bulletin. The |
2 | addition of section 302.1(c)(3) shall apply to relief from |
3 | charges that is granted on or after such implementation date. |
4 | (3) The amendment of section 401(b) of the act shall | <-- |
5 | apply to benefit years that begin on or after January 1, | <-- |
6 | 2012. |
7 | (4) The amendment of section 404, other than the | <-- |
8 | amendment of section 404(d)(1) 404(c) and (d)(1) and the | <-- |
9 | addition of section 404(d)(1.1) of the act, shall apply to | <-- |
10 | the determination of the maximum weekly benefit rate for |
11 | benefit years that begin on or after January 1, 2013. |
12 | (5) (4) The amendment or addition of section 404(d)(1) | <-- |
13 | and (1.1) of the act shall apply to benefit years that begin |
14 | on or after the effective date of section 404(d)(1) and | <-- |
15 | (1.1). |
16 | (6) (5) The amendment or addition of section 404(d)(1) | <-- |
17 | and (1.1) of the act shall not apply to severance pay |
18 | agreements that were agreed to by an employer and employee |
19 | prior to the effective date of this section section 404(d)(1) | <-- |
20 | and (1.1). |
21 | (7) The amendment of section 4(g.1) and 404(a) of the | <-- |
22 | act shall apply to benefit years that begin on or after July |
23 | 1, 2012. |
24 | (8) The amendment of section 404 (c) of the act shall |
25 | apply to benefit years that begin on or after January 1, |
26 | 2013. |
27 | (9) The amendment of section 402(b) and (e) of the act |
28 | are applicable to initial claims filed on or after January 1, |
29 | 2012. |
30 | (6) The amendment of sections 4(g.1) and 404(a) of the | <-- |
|
1 | act shall apply to benefit years that begin on or after |
2 | January 1, 2013. |
3 | (7) The amendment of section 404(c) of the act shall |
4 | apply to benefit years that begin on or after January 1, |
5 | 2015. |
6 | Section 10. The amendment of section 401-A(b) and (c) of the | <-- |
7 | act shall apply retroactively to December 18, 2010. |
8 | Section 11. This act shall take effect as follows: |
9 | (1) The amendment of section 404(e)(2) of the act shall | <-- |
10 | take effect immediately. |
11 | (1.1) The amendment of section 401(b) sections 401(b) | <-- |
12 | and 404(d) of the act shall take effect January 1, 2012. | <-- |
13 | (1.1) The amendment of sections 4(g.1) and 404(a) of the | <-- |
14 | act shall take effect July 1, 2012. |
15 | (2) The amendment of section sections 4(g.1) and 404 | <-- |
16 | introductory paragraph and subsection subsections (c) and (e) | <-- |
17 | (2) subsection (A) 404(a) of the act shall take effect | <-- |
18 | January 1, 2013. |
19 | (2.1) The amendment of section 404(c) of the act shall | <-- |
20 | take effect January 1, 2015. |
21 | (3) This Sections 9 and 10 and this section shall take | <-- |
22 | effect immediately. |
23 | (4) The addition of Article XIII of the act section 1311 | <-- |
24 | of the act shall take effect immediately. The remainder of |
25 | Article XIII of the act being added shall take effect upon |
26 | publication in the Pennsylvania Bulletin of the notice |
27 | required under section 1311 of the act or July 1, 2011, |
28 | whichever occurs later. |
29 | (5) The remainder of this act shall take effect in 60 |
30 | days. |
|