| H0916B1848A02357 JKL:JB 05/23/11 #90 A02357 |
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| AMENDMENTS TO HOUSE BILL NO. 916 |
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| Printer's No. 1848 |
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1 | Amend Bill, page 1, line 24, by inserting after "for" |
2 | shared-work program and for |
3 | Amend Bill, page 26, by inserting between lines 3 and 4 |
4 | Section 10. The act is amended by adding an article to read: |
5 | ARTICLE XIII |
6 | SHARED-WORK PROGRAM |
7 | Section 1301. Definitions. |
8 | The following words and phrases when used in this act shall |
9 | have the meanings given to them in this section unless the |
10 | context clearly indicates otherwise: |
11 | "Affected unit." A department, shift or other organizational |
12 | unit of two or more employees that is designated by an employer |
13 | to participate in a shared-work plan. |
14 | "Approved shared-work plan." An employer's shared-work plan |
15 | which meets the requirements of section 1303 and which the |
16 | department approves in writing. |
17 | "Fringe benefit." Health insurance, a retirement benefit |
18 | received under a pension plan, a paid vacation day, a paid |
19 | holiday, sick leave and any other similar employee benefit |
20 | provided by an employer. |
21 | "Participating employee." An employee in the affected unit |
22 | whose hours of work are reduced by the reduction percentage |
23 | under the shared-work plan. |
24 | "Participating employer." An employer who has a shared-work |
25 | plan in effect. |
26 | "Reduction percentage." The percentage by which each |
27 | participating employee's normal weekly hours of work are reduced |
28 | under a shared-work plan in accordance with section 1303(b). |
29 | "Shared-work plan." A plan for reducing unemployment under |
30 | which participating employees of an affected unit share the work |
31 | remaining after reduction in their normal weekly hours of work. |
32 | Section 1302. Application to approve plan. |
33 | (a) Requirements.--An employer that meets all of the |
34 | following requirements may apply to the department for approval |
35 | of a shared-work plan: |
36 | (1) The employer has filed all quarterly reports and |
37 | other reports required under this act and has paid all |
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1 | contribution, reimbursement, interest and penalty due through |
2 | the date of the employer's application. |
3 | (2) If the employer is contributory, the employer's |
4 | reserve account balance as of the most recent computation |
5 | date preceding the date of the employer's application is a |
6 | positive number. |
7 | (3) The employer has paid wages for the 12 consecutive |
8 | calendar quarters preceding the date of the employer's |
9 | application. |
10 | (b) Application.--An application under this section shall be |
11 | made in the manner prescribed by the department and contain all |
12 | information required by the department, including the following: |
13 | (1) The employer's assurance that it will provide |
14 | reports to the department relating to the operation of its |
15 | shared-work plan at the times and in the manner prescribed by |
16 | the department and containing all information required by the |
17 | department, including the number of hours worked each week by |
18 | participating employees. |
19 | (2) The employer's assurance that it will not hire new |
20 | employees in, or transfer employees to, the affected unit |
21 | during the effective period of the shared-work plan. |
22 | (3) The employer's assurance that it will not lay off |
23 | participating employees during the effective period of the |
24 | shared-work plan, or reduce participating employees' hours of |
25 | work by more than the reduction percentage during the |
26 | effective period of the shared-work plan, except in cases of |
27 | holidays, designated vacation periods, equipment maintenance |
28 | or similar circumstances. |
29 | (4) A list of the week or weeks within the requested |
30 | effective period of the plan during which participating |
31 | employees are anticipated to work fewer hours than the number |
32 | of hours determined under section 1303(a)(5) due to |
33 | circumstances included in paragraph (3). |
34 | (5) The employer's certification that the implementation |
35 | of a shared-work plan is in lieu of temporary layoffs that |
36 | would affect at least 10% of the employees in the affected |
37 | unit and would result in an equivalent reduction in work |
38 | hours. |
39 | (6) The employer's assurance that it will abide by all |
40 | terms and conditions of this article. |
41 | (c) Multiple plans.--An employer may apply to the department |
42 | for approval of more than one shared-work plan. |
43 | Section 1303. Plan requirements. |
44 | (a) General rule.--The department may approve a shared-work |
45 | plan only if the plan meets all of the following requirements: |
46 | (1) The shared-work plan applies to one affected unit. |
47 | (2) All employees in the affected unit are participating |
48 | employees, except that the following employees may not be |
49 | participating employees: |
50 | (i) An employee who has been employed in the |
51 | affected unit for less than three months prior to the |
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1 | date the employer applies for approval of the shared-work |
2 | plan. |
3 | (ii) An employee whose hours of work per week |
4 | determined under paragraph (5) is 40 or more hours. |
5 | (3) There are no fewer than two participating employees, |
6 | determined without regard to corporate officers. |
7 | (4) The participating employees are identified by name |
8 | and Social Security number. |
9 | (5) The number of hours a participating employee will |
10 | work each week during the effective period of the plan is |
11 | determined by the following formula: |
12 | employee's normal weekly hours of |
13 | work x (100% - reduction percentage) |
14 | (6) As a result of a decrease in the number of hours |
15 | worked by each participating employee, there is a |
16 | corresponding reduction in wages. |
17 | (7) If any participating employee is covered by a |
18 | collective bargaining agreement, the plan is approved in |
19 | writing by the collective bargaining representative. |
20 | (8) The plan does not affect the fringe benefits of any |
21 | participating employee not covered by a collective bargaining |
22 | agreement. |
23 | (9) The effective period of the plan is not more than 52 |
24 | consecutive weeks. |
25 | (10) The effective period of the plan combined with |
26 | effective periods of the participating employer's prior plans |
27 | does not equal more than 104 weeks out of a 156-week period. |
28 | (11) The reduction percentage satisfies the requirements |
29 | of subsection (b). |
30 | (b) Reduction percentage.--The reduction percentage under an |
31 | approved shared-work plan shall meet all of the following |
32 | requirements: |
33 | (1) The reduction percentage shall be no less than 20% |
34 | and no more than 40%. |
35 | (2) The reduction percentage shall be the same for all |
36 | participating employees. |
37 | (3) The reduction percentage shall not change during the |
38 | period of the shared-work plan unless the plan is modified in |
39 | accordance with section 1308. |
40 | Section 1304. Approval or disapproval of shared-work plan. |
41 | The department shall approve or disapprove a shared-work plan |
42 | no later than 15 days after the date the employer's shared-work |
43 | plan application that meets the requirements of section 1302(b) |
44 | is received by the department. The department's decision shall |
45 | be made in writing and, if the shared-work plan is disapproved, |
46 | shall include the reasons for the disapproval. |
47 | Section 1305. Effective period of plan. |
48 | (a) Number of weeks.--A shared-work plan is effective for |
49 | the number of consecutive weeks indicated in the employer's |
50 | application, or a lesser number of weeks as approved by the |
51 | department, unless sooner terminated in accordance with section |
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1 | 1309. |
2 | (b) Start date.--The effective period of the shared-work |
3 | plan shall begin with the first calendar week following the date |
4 | on which the department approves the plan. |
5 | Section 1306. Criteria for compensation. |
6 | (a) General rule.--Compensation shall be payable to a |
7 | participating employee for a week within the effective period of |
8 | an approved shared-work plan during which the employee works the |
9 | number of hours determined under section 1303(a)(5) for the |
10 | participating employer on the same terms, in the same amount and |
11 | subject to the same conditions that would apply to the |
12 | participating employee without regard to this article, except as |
13 | follows: |
14 | (1) A participating employee shall not be required to be |
15 | unemployed within the meaning of section 4(u) or file claims |
16 | for compensation under section 401(c). |
17 | (2) Notwithstanding section 404(d)(1), a participating |
18 | employee shall be paid compensation in an amount equal to the |
19 | product of his weekly benefit rate and the reduction |
20 | percentage, rounded to the next lower whole dollar amount. |
21 | (3) The department shall not deny compensation to a |
22 | participating employee for any week during the effective |
23 | period of the shared-work plan by reason of the application |
24 | of any provision of this act relating to active search for |
25 | work or refusal to apply for or accept work other than work |
26 | offered by the participating employer. |
27 | (4) A participating employee satisfies the requirements |
28 | of section 401(d)(1) if the employee is able to work and is |
29 | available for the employee's normal weekly hours of work with |
30 | the participating employer. |
31 | (b) Equivalent remuneration.--For purposes of subsection |
32 | (a), if a participating employee works fewer hours than the |
33 | number of hours determined under section 1303(a)(5) for the |
34 | participating employer during a week within the effective period |
35 | of the approved shared-work plan, but receives remuneration |
36 | equal to remuneration the employee would have received if the |
37 | employee had worked the number of hours determined under section |
38 | 1303(a)(5), the employee will be deemed to have worked the |
39 | number of hours determined under section 1303(a)(5) during that |
40 | week. |
41 | (c) Inapplicability of article.--A participating employee's |
42 | eligibility for compensation for a week within the effective |
43 | period of an approved shared-work plan shall be determined |
44 | without regard to this article under any of the following |
45 | circumstances: |
46 | (1) The employee works fewer hours than the number of |
47 | hours determined under section 1303(a)(5) for the |
48 | participating employer during the week and subsection (b) |
49 | does not apply. |
50 | (2) The employee works more hours than the number of |
51 | hours determined under section 1303(a)(5) for the |
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1 | participating employer during the week. |
2 | (3) The employee receives remuneration for the week from |
3 | the participating employer for hours in excess of the number |
4 | of hours determined under section 1303(a)(5). |
5 | Section 1307. Participating employer responsibilities. |
6 | (a) Filing claims.--The department shall establish a |
7 | schedule of consecutive two-week periods within the effective |
8 | period of the shared-work plan. The department may, as |
9 | necessary, include one-week periods in the schedule and revise |
10 | the schedule. At the end of each scheduled period, the |
11 | participating employer shall file claims for compensation for |
12 | the week or weeks within the period on behalf of the |
13 | participating employees. The claims shall be filed no later than |
14 | the last day of the week immediately following the period, |
15 | unless an extension of time is granted by the department for |
16 | good cause. The claims shall be filed in the manner prescribed |
17 | by the department and shall contain all information required by |
18 | the department to determine the eligibility of the participating |
19 | employees for compensation. |
20 | (b) Benefit charges.--Notwithstanding any other provision of |
21 | this act, compensation paid to participating employees for weeks |
22 | within the effective period of an approved shared-work plan will |
23 | be charged to the participating employer. |
24 | Section 1308. Modification of plan. |
25 | An employer may apply to the department for approval to |
26 | modify a shared-work plan to meet changed conditions. The |
27 | department shall reevaluate the plan and may approve the |
28 | modified plan if it meets the requirements for approval under |
29 | section 1304. If the modifications cause the shared-work plan to |
30 | fail to meet the requirements for approval, the department shall |
31 | disapprove the proposed modifications. |
32 | Section 1309. Termination of plan. |
33 | (a) General rule.--The secretary may terminate a shared-work |
34 | plan for good cause. |
35 | (b) Good cause.--For purposes of subsection (a), good cause |
36 | includes any of the following: |
37 | (1) The plan is not being executed according to its |
38 | approved terms and conditions. |
39 | (2) The participating employer fails to comply with the |
40 | assurances given in the plan. |
41 | (3) The participating employer or a participating |
42 | employee violates any criteria on which approval of the plan |
43 | was based. |
44 | (c) Termination by employer.--The employer may terminate a |
45 | shared-work plan by written notice to the department. |
46 | Section 1310. Department discretion. |
47 | The decision to approve or disapprove a shared-work plan, to |
48 | approve or disapprove a modification of a shared-work plan or to |
49 | terminate a shared-work plan will be made within the |
50 | department's discretion. Such decisions are not subject to the |
51 | appeal provisions of Article V. |
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1 | Section 1311. Publication of notice. |
2 | The department shall transmit to the Legislative Reference |
3 | Bureau for publication in the Pennsylvania Bulletin notice that |
4 | the provisions of this article have been approved by the |
5 | department as required under section 3304(a)(4)(E) of the |
6 | Federal Unemployment Tax Act (Public Law 86-778, 26 U.S.C. § |
7 | 3304(a)(4)(E)) and section 303(a)(5) of the Social Security Act |
8 | (49 Stat. 620, 42 U.S.C. § 503(a)(5)). |
9 | Section 1312. Severability. |
10 | Notwithstanding any other section of this act, if any |
11 | provision or provisions of this article cause the department to |
12 | withhold approval of this article as required under section |
13 | 3304(a)(4)(E) of the Federal Unemployment Tax Act (Public Law |
14 | 86-778, 26 U.S.C. § 3304(a)(4)(E)) and section 303(a)(5) of the |
15 | Social Security Act (49 Stat. 620, 42 U.S.C. § 503(a)(5)), the |
16 | department is authorized to permanently suspend the provision or |
17 | provisions. |
18 | Section 1313. Expiration. |
19 | This article shall expire five years from its effective date. |
20 | Amend Bill, page 26, line 4, by striking out "10" and |
21 | inserting |
22 | 11 |
23 | Amend Bill, page 26, line 19, by striking out "11" and |
24 | inserting |
25 | 12 |
26 | Amend Bill, page 26, line 20, by striking out "10(6)" and |
27 | inserting |
28 | 11(6) |
29 | Amend Bill, page 26, by inserting between lines 25 and 26 |
30 | (4) The addition of Article XIII of the act shall take |
31 | effect upon publication in the Pennsylvania Bulletin of the |
32 | notice required under section 1311 of the act or July 1, |
33 | 2011, whichever occurs later. |
34 | Amend Bill, page 26, line 26, by striking out "(4)" and |
35 | inserting |
36 | (5) |
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