PRINTER'S NO. 2154
No. 1798 Session of 1981
INTRODUCED BY JOHNSON, FARGO, BELFANTI AND SALVATORE,
SEPTEMBER 15, 1981
REFERRED TO COMMITTEE ON LABOR RELATIONS, SEPTEMBER 15, 1981
AN ACT
1 Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
2 P.L.2897, No.1), entitled "An act establishing a system of
3 unemployment compensation to be administered by the
4 Department of Labor and Industry and its existing and newly
5 created agencies with personnel (with certain exceptions)
6 selected on a civil service basis; requiring employers to
7 keep records and make reports, and certain employers to pay
8 contributions based on payrolls to provide moneys for the
9 payment of compensation to certain unemployed persons;
10 providing procedure and administrative details for the
11 determination, payment and collection of such contributions
12 and the payment of such compensation; providing for
13 cooperation with the Federal Government and its agencies;
14 creating certain special funds in the custody of the State
15 Treasurer; and prescribing penalties," further providing for
16 eligibility for compensation for employer's tax, and
17 requiring certain refunds.
18 The General Assembly of the Commonwealth of Pennsylvania
19 hereby enacts as follows:
20 Section 1. Subsection (h) of section 402, act of December 5,
21 1936 (2nd Sp.Sess., 1937 P.L.2897 No.1), known as the
22 "Unemployment Compensation Law," added December 17, 1959
23 (P.L.2897, No.1), is amended to read:
24 Section 402. Ineligibility for Compensation.--An employe
25 shall be ineligible for compensation for any week--
1 * * *
2 (h) In which he is engaged in self-employment: Provided,
3 however, That an employe who is able and available for full-time
4 work shall be deemed not engaged in self-employment by reason of
5 continued participation without substantial change during a
6 period of unemployment in any activity including farming
7 operations undertaken while customarily employed by an employer
8 in full-time work whether or not such work is in "employment" as
9 defined in this act and continued subsequent to separation from
10 such work when such activity is not engaged in as a primary
11 source of livelihood. Net earnings received by the employe with
12 respect to such activity shall be deemed remuneration paid or
13 payable with respect to such period as shall be determined by
14 rules and regulations of the department. Notwithstanding any
15 other provision of this act, a person shall not be deemed to be
16 engaged in self-employment if his wages were subjected to an
17 employer's tax under section 301, any person deemed to be
18 engaged in self-employment shall not be required to make
19 contributions for the employer's tax under section 301 and any
20 such contributions demanded and made, or made under any such
21 circumstances, shall be refunded with interest at ten per cent.
22 * * *
23 Section 2. If any person for whom contributions were
24 heretofore made for the employer's tax was later denied
25 compensation as self-employed, such contributions shall be
26 refunded without interest to each such employer.
27 Section 3. This act shall take effect January 1, 1981.
G17L43JJR/19810H1798B2154 - 2 -