1Amending the act of December 5, 1936 (2nd Sp.Sess., 1937 
2P.L.2897, No.1), entitled "An act establishing a system of 
3unemployment compensation to be administered by the 
4Department of Labor and Industry and its existing and newly 
5created agencies with personnel (with certain exceptions) 
6selected on a civil service basis; requiring employers to 
7keep records and make reports, and certain employers to pay 
8contributions based on payrolls to provide moneys for the 
9payment of compensation to certain unemployed persons; 
10providing procedure and administrative details for the 
11determination, payment and collection of such contributions 
12and the payment of such compensation; providing for 
13cooperation with the Federal Government and its agencies; 
14creating certain special funds in the custody of the State 
15Treasurer; and prescribing penalties," <-further providing for 
<-16in preliminary provisions, further providing for definitions; 
17in contributions, further providing for establishment and 
18maintenance of employer's reserve accounts, for relief from 
19charges and for reciprocal agreements; in compensation, 
20further providing for qualifications required to secure 
21compensation and for ineligibility for compensation<-; in 
22penalties, further providing for false statements and 
23representations to obtain or increase compensation <-and for 
24recovery and recoupment of compensation; and, in shared-work 
25program, further providing for definitions, for application 
26to approve shared-work plan, for shared-work plan 
27requirements and for expiration.

28The General Assembly of the Commonwealth of Pennsylvania

1hereby enacts as follows:

2Section 1. Section 401(f) of the act of December 5, 1936<- 
3(2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment 
4Compensation Law, amended June 12, 2012 (P.L.577, No.60), is 
5amended to read:

<-6Section 1. Section 4(l)(4) of the act of December 5, 1936 
7(2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment 
8Compensation Law, is amended by adding a subparagraph to read:

9Section 4. Definitions.--The following words and phrases, as
10used in this act, shall have the following meanings, unless the
11context clearly requires otherwise.

12* * *

13(l) * * *

14(4) The word "employment" shall not include--

15* * *

16(21) Services performed by a full-time student in the employ
17of an organized camp if:

18(A) the camp did not operate for more than seven months in
19the calendar year and did not operate for more than seven months
20in the preceding calendar year; or had average gross receipts
21for any six months in the preceding calendar year which were not
22more than thirty-three and one-third per centum (33 1/3%) of its
23average gross receipts for the other six months in the preceding
24calendar year; and

25(B) the full-time student performs services in the employ of
26the camp for less than thirteen calendar weeks in any such year.

27(C) For purposes of this subparagraph, an individual shall
28be treated as a full-time student for any period during which
29the individual is enrolled as a full-time student at an
30educational institution; or which is between academic years or

1terms if the individual was enrolled as a full-time student at
2an educational institution for the immediately preceding
3academic year or term and there is a reasonable assurance that
4the individual will be so enrolled for the immediately
5succeeding academic year or term.

6(D) For purposes of this subparagraph, the term "educational
7institution" shall mean any educational institution of
8secondary, higher educational, professional or vocational
9educational training.

10(E) For purposes of this subparagraph, the term "camp" shall
11mean a children's overnight camp or a summer day camp of any
12variety.

13* * *

14Section 2. Sections 302(a) and 302.1 introductory paragraph
15of the act, amended or added June 17, 2011 (P.L.16, No.6), are
16amended to read:

17Section 302. Establishment and Maintenance of Employer's
18Reserve Accounts.--The department shall establish and maintain
19for each employer a separate employer's reserve account in the
20following manner:

21(a) An employer's account shall be charged with all
22compensation, including dependents' allowances, paid to each
23individual who received from such employer wage credits
24constituting the base of such compensation, in [the proportion
25that such wage credits with such employer bears to the total
26wage credits received by such individual from all employers]
27accordance with this subsection.

28(1) An employer's account shall be charged with compensation
29paid to an individual for which an overpayment under section 804
30of this act is not established against the individual.

1(2) In addition to charges assigned under paragraph (1), an
2employer's account shall be charged with compensation paid to an
3individual for which an overpayment under section 804 is
4established against the individual if the compensation is paid
5because the employer or an agent of the employer responds
6untimely or inadequately or fails to respond to a request by the
7department for information regarding the individual's
8eligibility for compensation. For the purposes of this
9paragraph, the following shall apply:

10(i) A request by the department for information regarding an
11individual's eligibility shall:

12(A) Indicate the name and social security number of the
13individual.

14(B) Contain specific inquiries, indicate the type of
15information sought, or both.

16(C) Be mailed to the employer's or agent's last known
17address or be transmitted electronically to the employer's or
18agent's electronic mail address if the employer or agent has
19designated an electronic mail address.

20(D) Indicate the date the request is mailed or transmitted
21electronically.

22(E) Indicate a mailing address, an electronic mail address,
23or both, where a response shall be filed.

24(ii) An employer's or agent's response to a request by the
25department for information shall be untimely if the response is
26filed more than <-seven fourteen days after the department's
27request for information is mailed or transmitted electronically
28to the employer or agent. The filing date of a response shall be
29determined in accordance with 34 Pa. Code § 63.25 (relating to
30filing methods).

1(iii) An employer's or agent's response shall be inadequate
2if the response misrepresents or omits facts that, if
3represented accurately or disclosed, would have been a basis for
4the department to disqualify the individual from receiving
5compensation<-, either alone or in conjunction with other facts
6known to the department.

7(iv) A determination by the department assigning charges
8under this paragraph may be appealed as provided in Article V of
9this act for appeals from determinations regarding an
10individual's eligibility for compensation.

11(3) An employer's account shall be charged with compensation
12paid to an individual in the proportion that the individual's
13wage credits with the employer bear to the total wage credits
14received by the individual from all employers.

15* * *

16Section 302.1. Relief from Charges.--Notwithstanding any
17other provisions of this act assigning charges for compensation
18paid to employes, except for section 302(a)(2), the department
19shall relieve an employer of charges for compensation in
20accordance with this section and section 213 of this act.

21* * *

22Section 3. Section 312 of the act is amended by adding a
23subsection to read:

24Section 312. Reciprocal Agreements.--The department is
25hereby authorized to enter into reciprocal arrangements with
26appropriate and duly authorized agencies of other states or of
27the Federal Government, or both, whereby--

28* * *

29(g) Overpayments of compensation under this act shall be
30deducted from compensation payable under an unemployment benefit

1program of the United States or another state and overpayments
2of compensation under an unemployment benefit program of the
3United States or another state shall be deducted from
4compensation payable under this act or compensation paid by the
5Commonwealth pursuant to an unemployment benefit program of the
6United States. A reciprocal agreement under this subsection
7shall be consistent with the requirements of section 303(g) of
8the Social Security Act (49 Stat. 620, 42 U.S.C. § 301 et seq.)
9and the regulations and instructions of the United States
10Department of Labor.

11Section 3.1. Section 401(f) of the act, amended june 12, 
122012 (P.L.577, No.60), is amended to read:

13Section 401. Qualifications Required to Secure
14Compensation.--Compensation shall be payable to any employe who
15is or becomes unemployed, and who--

16* * *

17(f) Has earned, subsequent to his separation from work under
18circumstances which are disqualifying under the provisions of
19subsections 402(b), 402(e), 402(e.1) [and 402(h)], 402(h) and 
20402(k) of this act, remuneration for services in an amount equal
21to or in excess of six (6) times his weekly benefit rate in
22"employment" as defined in this act. The provisions of this
23subsection shall not apply to a suspension of work by an
24individual pursuant to a leave of absence granted by his last
25employer, provided such individual has made a reasonable effort
26to return to work with such employer upon the expiration of his
27leave of absence.

28* * *

<-29Section 2. Section 402 of the act is amended by adding a
30subsection to read:

<-1Section 4. Sections 402 and 801 of the act are amended by
2adding subsections to read:

3Section 402. Ineligibility for Compensation.--An employe
4shall be ineligible for compensation for any week--

5* * *

6(k) In which the employe's unemployment is due to a 
7separation from work initiated by the employe or the employer in 
8order to preserve the employe's existing entitlement to a 
9pension, including a governmental or other pension, retirement 
10or retired pay, annuity or any other similar periodic payments.

<-11Section 801. False Statements and Representations to Obtain
12or Increase Compensation.--* * *

13(c) Whoever makes a false statement knowing it to be false,
14or knowingly fails to disclose a material fact to obtain or
15increase compensation or other payment under this act or under
16an employment security law of the Federal Government and as a
17result receives compensation to which he is not entitled shall
18be liable to pay to the Unemployment Compensation Fund a sum
19equal to fifteen per centum (15%) of the amount of the
20compensation. The sum shall be collectible in the manner
21provided in section 308.1 or 309 for the collection of past due
22contributions and by any other means available under Federal or
23State law. No administrative or legal proceeding for the
24collection of the sum may be instituted after the expiration of
25ten years following the end of the benefit year with respect to
26which the sum was paid.

<-27Section 4.1. Section 804(b) of the act, amended July 10,
281980 (P.L.521, No.108), is amended to read:

29Section 804. Recovery and Recoupment of Compensation.--* * *

30(b) (1) Any person who other than by reason of his fault

1has received with respect to a benefit year any sum as
2compensation under this act to which he was not entitled shall
3not be liable to repay such sum but shall be liable to have such
4sum deducted from any future compensation payable to him with
5respect to such benefit year, or the three-year period
6immediately following such benefit year[: Provided, That with], 
7in accordance with the provisions of this paragraph.

8(i) With respect to overpayments of one hundred dollars or
9more, recoupment from such future compensation shall not exceed
10one-third of the maximum benefit amount to which such person is
11entitled during any such subsequent benefit year nor one-third
12of the weekly benefit amount to which such person may be
13entitled for any particular week.

14(ii) If an overpayment is established under this paragraph,
15an employer shall be assigned charges for the overpayment under
16section 302(a)(2) of this act, the determination assigning
17charges to the employer shall be final and an amount equal to
18the amount charged to the employer shall be applied as a credit
19toward the person's overpayment. The provisions of this
20subparagraph shall not apply to an overpayment to which
21subparagraph (iii) applies.

22(iii) In the absence of misrepresentation or non-disclosure
23of a material fact, no recoupment shall be had if such
24overpayment is created by reason of [(i)]:

25(A) a subsequent reversal of two decisions of eligibility
26under the provisions of section five hundred one (e) of this
27act[, or (ii)];

28(B) the subsequent receipt of holiday pay, vacation pay or
29the like of which the person had no knowledge[, or (iii)]; or

30(C) a subsequent determination that the person's base year

1wages were not earned in employment as defined in this act.

2(iv) No provision of this subsection shall be construed to
3prevent or prohibit the voluntary repayment of compensation by
4such person or the maintenance of records of overpayments by the
5department.

6(2) The claimant and other affected parties shall be
7notified in writing of the department's determination to deduct
8any sum from future compensation under this section, and such
9determination shall be subject to appeal in the manner provided
10in this act for appeals from determinations of compensation.

11(3) Notwithstanding any other provisions of this subsection,
12any person who has received or employer who has made a back wage
13payment pursuant to an award of a labor relations board
14arbitrator or the like without deduction for unemployment
15compensation benefits received during the period to which such
16wages are allocated shall notify the department immediately of
17the receipt or payment of such back wage award. The recipient of
18such back wage award, made without deduction for unemployment
19compensation benefits received during the period, shall be
20liable to pay into the Unemployment Compensation Fund an amount
21equal to the amount of such unemployment compensation benefits
22received.

23* * *

24Section 5. Sections 1301, 1302, 1303 and 1313 of the act, 
25added June 17, 2011 (P.L.16, No.6), are amended to read:

26Section 1301. Definitions.

27The following words and phrases when used in this act shall
28have the meanings given to them in this section unless the
29context clearly indicates otherwise:

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

1unit of two or more employees that is designated by an employer
2to participate in a shared-work plan.

3"Approved shared-work plan." An employer's shared-work plan
4which meets the requirements of section 1303 and which the
5department approves in writing.

6["Fringe benefit." Health insurance, a retirement benefit
7received under a pension plan, a paid vacation day, a paid
8holiday, sick leave and any other similar employee benefit
9provided by an employer.]

10"Participating employee." An employee in the affected unit
11whose hours of work are reduced by the reduction percentage
12under the shared-work plan.

13"Participating employer." An employer who has a shared-work
14plan in effect.

15"Reduction percentage." The percentage by which each
16participating employee's normal weekly hours of work are reduced
17under a shared-work plan in accordance with section 1303(b).

18"Shared-work plan." A plan for reducing unemployment under
19which participating employees of an affected unit share the work
20remaining after reduction in their normal weekly hours of work.

21Section 1302. Application to approve shared-work plan.

22(a) Requirements.--An employer that meets all of the
23following requirements may apply to the department for approval
24of a shared-work plan:

25(1) The employer has filed all quarterly reports and
26other reports required under this act and has paid all
27contribution, reimbursement, interest and penalty due through
28the date of the employer's application.

29(2) If the employer is contributory, the employer's
30reserve account balance as of the most recent computation

1date preceding the date of the employer's application is a
2positive number.

3(3) The employer has paid wages for the 12 consecutive
4calendar quarters preceding the date of the employer's
5application.

6(b) Application.--An application under this section shall be
7made in the manner prescribed by the department and contain all
8information required by the department, including the following:

9(1) The employer's written plan, describing the manner
10in which the requirements of this article will be
11implemented, including a plan for giving advance notice,
12where feasible, to participating employees whose hours of
13work are reduced, an estimate of the number of layoffs that
14would have occurred in the absence of the employer's shared-
15work plan and other information required by the department
16and the United States Department of Labor.

17[(1)] (1.1) The employer's assurance that it will
18provide reports to the department relating to the operation
19of its shared-work plan at the times and in the manner
20prescribed by the department and containing all information
21required by the department, including the number of hours
22worked each week by participating employees.

23(2) The employer's assurance that it will not hire new
24employees in or transfer employees to the affected unit
25during the effective period of the shared-work plan.

26(3) The employer's assurance that it will not lay off
27participating employees during the effective period of the
28shared-work plan, or reduce participating employees' hours of
29work by more than the reduction percentage during the
30effective period of the shared-work plan, except in cases of

1holidays, designated vacation periods, equipment maintenance
2or similar circumstances.

3(4) A list of the week or weeks within the requested
4effective period of the shared-work plan during which
5participating employees are anticipated to work fewer hours
6than the number of hours determined under section 1303(a)(5)
7due to circumstances included in paragraph (3).

8(5) The employer's certification that the implementation 
9of a shared-work plan is in lieu of [temporary] layoffs that 
10would affect at least 10% of the employees in the affected 
11unit and would result in an equivalent reduction in work 
12hours.

13(6) The employer's assurance that it will abide by all
14terms and conditions of this article.

15(7) The employer's attestation that its implementation
16of the shared-work plan is consistent with the employer's
17obligations under Federal and State law.

18(8) If the employer provides health benefits and
19retirement benefits under a defined benefit plan as defined
20in section 414(j) of the Internal Revenue Code of 1986
21(Public Law 99-514, 26 U.S.C. § 414(j)), or contributions
22under a defined contribution plan as defined in section
23414(i) of the Internal Revenue Code of 1986 (Public Law 99-
24514, 26 U.S.C. § 414(i), to a participating employee whose
25hours of work are reduced under the shared-work plan, the
26employer's certification that the benefits will continue to
27be provided to participating employees under the same terms
28and conditions as though the hours of work of the employees
29had not been reduced or to the same extent as other employees
30not participating in the shared-work plan.

1(c) Multiple shared-work plans.--An employer may apply to
2the department for approval of more than one shared-work plan.

3Section 1303. Shared-work plan requirements.

4(a) General rule.--The department may approve a shared-work
5plan only if the plan meets all of the following requirements:

6(1) The shared-work plan applies to one affected unit.

7(2) All employees in the affected unit are participating
8employees, except that the following employees may not be
9participating employees:

10(i) An employee who has been employed in the
11affected unit for less than three months prior to the
12date the employer applies for approval of the shared-work
13plan.

14(i.1) An employee in the affected unit who is
15employed on a seasonal, temporary or intermittent basis.

16(ii) An employee whose hours of work per week
17determined under paragraph (5) is 40 or more hours.

18(3) There are no fewer than two participating employees,
19determined without regard to corporate officers.

20(4) The participating employees are identified by name
21and Social Security number.

22(5) The number of hours a participating employee will
23work each week during the effective period of the shared-work
24plan is determined by the following formula:

25employee's normal weekly hours of

26work x (100% - reduction percentage)

27(6) As a result of a decrease in the number of hours
28worked by each participating employee, there is a
29corresponding reduction in wages.

30(7) If any participating employee is covered by a

1collective bargaining agreement, the shared-work plan is
2approved in writing by the collective bargaining
3representative.

4[(8) The shared-work plan does not affect the fringe
5benefits of any participating employee not covered by a
6collective bargaining agreement.]

7(9) The effective period of the shared-work plan is not 
8more than 52 consecutive weeks.

9(10) The effective period of the shared-work plan 
10combined with effective periods of the participating 
11employer's prior shared-work plans does not equal more than 
12104 weeks out of a 156-week period.

13(11) The reduction percentage satisfies the requirements 
14of subsection (b).

15(b) Reduction percentage.--The reduction percentage under an
16approved shared-work plan shall meet all of the following
17requirements:

18(1) The reduction percentage shall be no less than 20%
19and no more than 40%.

20(2) The reduction percentage shall be the same for all
21participating employees.

22(3) The reduction percentage shall not change during the
23period of the shared-work plan unless the plan is modified in
24accordance with section 1308.

25[Section 1313. Expiration.

26This article shall expire five years from its effective date.]

27Section <-3 6. The provisions of this act shall apply to
<-28initial claims benefit years filed on or after the effective
29date of this section.

<-30Section 4 7. This act shall take effect in 60 days.

<-1Section 7. This act shall apply as follows:

2(1) The addition of section 4(l)(4)(21) of the act shall
3apply to services performed on or after the effective date of
4this section.

5(2) The addition of section 302(a)(2) shall apply to
6overpayments established on or after October 21, 2013.

7(3) The amendment or addition of sections 401(f) and
8402(k) of the act shall apply to benefit years beginning on
9or after the effective date of this section.

10(4) The addition of section 801(c) of the act shall
11apply to overpayments established on or after October 21,
122013.

13Section 8. This act shall take effect as follows:

14(1) The amendment of sections 1301, 1302 and 1303 of the
15act shall take effect in 90 days.

16(2) The remainder of this act shall take effect
17immediately.