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                                                      PRINTER'S NO. 4063

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2728 Session of 2002


        INTRODUCED BY SAYLOR, MARSICO, COY, LEH, ROHRER, METCALFE,
           ARMSTRONG, M. BAKER, BASTIAN, BENNINGHOFF, BIRMELIN,
           CAPPELLI, CLYMER, L. I. COHEN, CREIGHTON, DAILEY, EGOLF,
           FAIRCHILD, FLEAGLE, FORCIER, GABIG, GEIST, HERMAN, HERSHEY,
           HESS, KREBS, LEWIS, MACKERETH, MAHER, MAITLAND, McGILL,
           McNAUGHTON, R. MILLER, NAILOR, PHILLIPS, ROSS, RUBLEY,
           SATHER, SCHULER, SEMMEL, B. SMITH, STABACK, STEIL, STERN,
           R. STEVENSON, E. Z. TAYLOR, TULLI, TURZAI, WILT AND ZUG,
           JUNE 19, 2002

        REFERRED TO COMMITTEE ON LABOR RELATIONS, JUNE 19, 2002

                                     AN ACT

     1  Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
     2     P.L.2897, No.1), entitled "An act establishing a system of
     3     unemployment compensation to be administered by the
     4     Department of Labor and Industry and its existing and newly
     5     created agencies with personnel (with certain exceptions)
     6     selected on a civil service basis; requiring employers to
     7     keep records and make reports, and certain employers to pay
     8     contributions based on payrolls to provide moneys for the
     9     payment of compensation to certain unemployed persons;
    10     providing procedure and administrative details for the
    11     determination, payment and collection of such contributions
    12     and the payment of such compensation; providing for
    13     cooperation with the Federal Government and its agencies;
    14     creating certain special funds in the custody of the State
    15     Treasurer; and prescribing penalties," further providing for
    16     definitions; providing for referral for suitable work; and
    17     further providing for determination of contribution rate and
    18     experience rating, for establishment and maintenance of
    19     employer's reserve accounts, for qualifications required to
    20     secure compensation, for ineligibility for compensation, for
    21     eligibility of officers of a corporation deemed to be self-
    22     employed persons, for rate and amount of compensation, for
    23     determination of compensatory appeals, for decision of
    24     referee and further appeals and reviews, for rules of
    25     procedure and for finality of decisions.

    26     The General Assembly of the Commonwealth of Pennsylvania

     1  hereby enacts as follows:
     2     Section 1.  Section 4(a), (t) and (w)(2) of the act of
     3  December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as
     4  the Unemployment Compensation Law, amended May 23, 1949
     5  (P.L.1738, No.530), September 27, 1971 (P.L.460, No.108) and
     6  July 10, 1980 (P.L.521, No.108), is amended and the section is
     7  amended by adding a definition to read:
     8     Section 4.  Definitions.--The following words and phrases, as
     9  used in this act, shall have the following meanings, unless the
    10  context clearly requires otherwise.
    11     (a)  "Average working wage" means the qualifying total base
    12  year wages of an employe divided by the total number of credit
    13  weeks in the base year, regardless of any limit on the number of
    14  credit weeks used to qualify for or calculate benefits.
    15     [(a)] (a.1)  "Base year" means the first four of the last
    16  five completed calendar quarters immediately preceding the first
    17  day of an individual's benefit year.
    18     * * *
    19     (t)  "Suitable Work" means all work which the employe is
    20  capable of performing. In determining whether or not any work is
    21  suitable for an individual, the department shall consider the
    22  degree of risk involved to his health, safety and morals, his
    23  physical fitness, prior training and experience, and the
    24  distance of the available work from his residence. The
    25  department shall also consider among other factors the length of
    26  time he has been unemployed and the reasons therefor, the
    27  prospect of obtaining local work in his customary occupation,
    28  his previous earnings, the prevailing condition of the labor
    29  market generally and particularly in his usual trade or
    30  occupation, prevailing wage rates in his usual trade or
    20020H2728B4063                  - 2 -

     1  occupation, and the permanency of his residence. However, after
     2  ten weeks of collecting unemployment compensation, the term
     3  "suitable work" shall mean any work which is within the
     4  individual's capabilities and pays wages not less than the
     5  higher of the minimum wage under section 6(a)(1) of the Fair
     6  Labor Standards Act of 1938 (52 Stat. 1060, 29 U.S.C. §
     7  601(a)(1)) or the minimum wage under section 4 of the act of
     8  January 17, 1968 (P.L.11, No.5), known as "The Minimum Wage Act
     9  of 1968": Provided, however, That the gross average weekly
    10  remuneration payable for the work must exceed the sum of the
    11  individual's weekly benefit amount and the amount, if any, of
    12  supplemental unemployment benefits, as defined in section
    13  501(c)(17)(D) of the Internal Revenue Code of 1954 (68A Stat. 3,
    14  26 U.S.C. § 501(c)(17)(D)), payable to the individual for the
    15  week; Provided further, That, notwithstanding any other
    16  provisions of this subsection no work shall be deemed suitable
    17  in which (1) the position offered is vacant, due directly to a
    18  strike, lockout, or other labor dispute, or (2) the
    19  remuneration, hours or other conditions of the work offered are
    20  substantially less favorable to the employe than those
    21  prevailing for similar work in the locality, or (3) as a
    22  condition of being employed, the employe would be required to
    23  join a company union, or to resign from, or refrain from
    24  joining, any bona fide labor organization.
    25     * * *
    26     (w)  * * *
    27     (2)  An application for benefits filed after the termination
    28  of a preceding benefit year by an individual shall not be
    29  considered a Valid Application for Benefits within the meaning
    30  of this subsection, unless such individual has, subsequent to
    20020H2728B4063                  - 3 -

     1  the beginning of such preceding benefit year and prior to the
     2  filing of such application, worked and earned wages, [whether or
     3  not such work is] in "employment" as defined in this act in an
     4  amount equal to or in excess of [six (6)] ten (10) times his
     5  weekly benefit rate in effect during such preceding benefit
     6  year[.] and worked and earned wages, in "employment" as defined
     7  in this act, in ten (10) separate weeks.
     8     * * *
     9     Section 2.  The act is amended by adding a section to read:
    10     Section 212.  Referral for Suitable Work.--The employment
    11  offices, job centers and the telephone service centers shall
    12  automatically refer all claimants entitled to regular benefits
    13  or extended benefits to suitable work via the job centers and
    14  the career link offices in the county in which the claimant
    15  resides.
    16     Section 3.  Section 301.1(c)(1) and (e) of the act, amended
    17  July 21, 1983 (P.L.68, No.30), are amended to read:
    18     Section 301.1.  Determination of Contribution Rate;
    19  Experience Rating.--
    20     * * *
    21     (c)  (1)  When, as of the computation date, there is a
    22  credit, zero or debit balance in such employer's reserve
    23  account, which balance shall include (i) contributions with
    24  respect to the period ending on the computation date and paid on
    25  or before September fifteenth immediately following such
    26  computation date, (ii) benefits paid on or before computation
    27  date, and shall also include any voluntary payments made in
    28  accordance with subsection (b) of section 302 of this act, his
    29  Reserve Ratio Factor for the respective calendar year thereafter
    30  shall be as set forth in the table below.
    20020H2728B4063                  - 4 -

     1                               [Table
     2                 Reserve Ratio Factor - 1984 Rates
     3     Employers Reserve Account as a                      Reserve
     4         Percentage of Taxable Wages                  Ratio Factor
     5  Greater than 25%                                           0.0
     6  Greater than or equal to 22% but less than 25%             0.1
     7  Greater than or equal to 19% but less than 22%             0.2
     8  Greater than or equal to 16% but less than 19%             0.3
     9  Greater than or equal to 13% but less than 16%             0.4
    10  Greater than or equal to 10% but less than 13%             0.5
    11  Greater than or equal to  7% but less than 10%             0.6
    12  Greater than or equal to  4% but less than  7%             0.7
    13  Greater than or equal to  3% but less than  4%             0.8
    14  Greater than or equal to  2% but less than  3%             0.9
    15  Greater than or equal to  0% but less than  2%             1.0
    16  Less than 0% but greater than -2%                          1.1
    17  Less than or equal to  -2% but greater than  -4%           1.2
    18  Less than or equal to  -4% but greater than  -6%           1.3
    19  Less than or equal to  -6% but greater than  -8%           1.4
    20  Less than or equal to  -8% but greater than -10%           1.5
    21  Less than or equal to -10% but greater than -12%           1.6
    22  Less than or equal to -12% but greater than -14%           1.7
    23  Less than or equal to -14% but greater than -16%           1.8
    24  Less than or equal to -16% but greater than -18%           1.9
    25  Less than or equal to -18% or lower                        2.0
    26                               Table
    27                 Reserve Ratio Factor - 1985 Rates
    28     Employers Reserve Account as a                      Reserve
    29         Percentage of Taxable Wages                  Ratio Factor
    30  Greater than 25%                                           0.0
    20020H2728B4063                  - 5 -

     1  Greater than or equal to 21% but less than 25%             0.1
     2  Greater than or equal to 18% but less than 21%             0.2
     3  Greater than or equal to 15% but less than 18%             0.3
     4  Greater than or equal to 12% but less than 15%             0.4
     5  Greater than or equal to  9% but less than 12%             0.5
     6  Greater than or equal to  7% but less than  9%             0.6
     7  Greater than or equal to  5% but less than  7%             0.7
     8  Greater than or equal to  3% but less than  5%             0.8
     9  Greater than or equal to  1% but less than  3%             0.9
    10  Greater than or equal to  0% but less than  1%             1.0
    11  Less than 0% but greater than -1%                          1.1
    12  Less than or equal to  -1% but greater than  -2%           1.2
    13  Less than or equal to  -2% but greater than  -3%           1.3
    14  Less than or equal to  -3% but greater than  -4%           1.4
    15  Less than or equal to  -4% but greater than  -5%           1.5
    16  Less than or equal to  -5% but greater than  -6%           1.6
    17  Less than or equal to  -6% but greater than  -7%           1.7
    18  Less than or equal to  -7% but greater than  -8%           1.8
    19  Less than or equal to  -8% but greater than  -9%           1.9
    20  Less than or equal to  -9% but greater than -10%           2.0
    21  Less than or equal to -10% but greater than -15%           2.1
    22  Less than or equal to -15% but greater than -20%           2.2
    23  Less than or equal to -20% or lower                        2.3]
    24                               Table
    25  Reserve Ratio Factor - 1986 [and thereafter] through 2001 Rates
    26     Employers Reserve Account as a                      Reserve
    27         Percentage of Taxable Wages                  Ratio Factor
    28  Greater than 25%                                           0.0
    29  Greater than or equal to 21% but less than 25%             0.3
    30  Greater than or equal to 18% but less than 21%             0.4
    20020H2728B4063                  - 6 -

     1  Greater than or equal to 15% but less than 18%             0.5
     2  Greater than or equal to 12% but less than 15%             0.6
     3  Greater than or equal to  9% but less than 12%             0.7
     4  Greater than or equal to  7% but less than  9%             0.8
     5  Greater than or equal to  5% but less than  7%             0.9
     6  Greater than or equal to  3% but less than  5%             1.0
     7  Greater than or equal to  1% but less than  3%             1.1
     8  Greater than or equal to  0% but less than  1%             1.2
     9  Less than 0% but greater than -1%                          1.3
    10  Less than or equal to  -1% but greater than  -2%           1.4
    11  Less than or equal to  -2% but greater than  -3%           1.5
    12  Less than or equal to  -3% but greater than  -4%           1.6
    13  Less than or equal to  -4% but greater than  -5%           1.7
    14  Less than or equal to  -5% but greater than  -6%           1.8
    15  Less than or equal to  -6% but greater than  -7%           1.9
    16  Less than or equal to  -7% but greater than  -8%           2.0
    17  Less than or equal to  -8% but greater than  -9%           2.1
    18  Less than or equal to  -9% but greater than -10%           2.2
    19  Less than or equal to -10% but greater than -11%           2.3
    20  Less than or equal to -11% but greater than -12%           2.4
    21  Less than or equal to -12% but greater than -16%           2.5
    22  Less than or equal to -16% but greater than -20%           2.6
    23  Less than or equal to -20% or lower                        2.7
    24                               Table
    25          Reserve Ratio Factor - 2002 and thereafter Rates
    26     Employers Reserve Account as a                      Reserve
    27         Percentage of Taxable Wages                  Ratio Factor
    28  Greater than 100%                                         -0.4
    29  Greater than or equal to 75% but less than 100%           -0.3
    30  Greater than or equal to 50% but less than 75%            -0.2
    20020H2728B4063                  - 7 -

     1  Greater than or equal to 25% but less than 50%             0.0
     2  Greater than or equal to 21% but less than 25%             0.3
     3  Greater than or equal to 18% but less than 21%             0.4
     4  Greater than or equal to 15% but less than 18%             0.5
     5  Greater than or equal to 12% but less than 15%             0.6
     6  Greater than or equal to  9% but less than 12%             0.7
     7  Greater than or equal to  7% but less than  9%             0.8
     8  Greater than or equal to  5% but less than  7%             0.9
     9  Greater than or equal to  3% but less than  5%             1.0
    10  Greater than or equal to  1% but less than  3%             1.1
    11  Greater than or equal to  0% but less than  1%             1.2
    12  Less than 0% but greater than -1%                          1.3
    13  Less than or equal to  -1% but greater than  -2%           1.4
    14  Less than or equal to  -2% but greater than  -3%           1.5
    15  Less than or equal to  -3% but greater than  -4%           1.6
    16  Less than or equal to  -4% but greater than  -5%           1.7
    17  Less than or equal to  -5% but greater than  -6%           1.8
    18  Less than or equal to  -6% but greater than  -7%           1.9
    19  Less than or equal to  -7% but greater than  -8%           2.0
    20  Less than or equal to  -8% but greater than  -9%           2.1
    21  Less than or equal to  -9% but greater than -10%           2.2
    22  Less than or equal to -10% but greater than -11%           2.3
    23  Less than or equal to -11% but greater than -12%           2.4
    24  Less than or equal to -12% but greater than -16%           2.5
    25  Less than or equal to -16% but greater than -20%           2.6
    26  Less than or equal to -20% or lower                        2.7
    27     * * *
    28     (e)  The State Adjustment Factor for the calendar year
    29  beginning January 1, 1984, shall be one and five-tenths per
    30  centum (1.5%) and thereafter shall be computed as of the
    20020H2728B4063                  - 8 -

     1  computation date for such year to a tenth of a per centum,
     2  rounding all fractional parts of a tenth of a per centum to the
     3  nearest tenth of a per centum, but in no event less than zero
     4  nor in excess of one and five-tenths per centum (1.5%),
     5  according to the following formula:
     6     Bdr - Dcr
     7  ----------------------  X 100 = State Adjustment Factor
     8         Wt
     9  in which factor "Bdr" equals the aggregate of (1) all benefits
    10  paid but not charged to employers' accounts, plus, (2) all
    11  benefits paid and charged to inactive and terminated employers'
    12  accounts, plus, (3) all benefits paid and charged to accounts of
    13  active employers for the preceding year to the extent such
    14  benefits exceed the combined amount of contributions payable by
    15  such employers on the basis of the Benefit Ratio Factor and the
    16  Reserve Ratio Factor. Factor "Dcr" equals the aggregate of (1)
    17  interest credited to the Unemployment Compensation Fund, plus,
    18  (2) amounts transferred from the Special Administration Fund and
    19  the Interest Fund to the Unemployment Compensation Fund, plus,
    20  (3) refunds of benefits unlawfully paid, plus, (4) amounts
    21  credited to the Unemployment Compensation Fund by the Federal
    22  Government other than by loan, except that any amount credited
    23  to this Commonwealth's account under section 903 of the Federal
    24  Social Security Act which has been appropriated for expenses of
    25  administration shall be excluded from the amount in the
    26  Unemployment Compensation Fund in the computation of the "Dcr"
    27  factor. Factor "Wt" equals all wages subject to the law up to
    28  the limitation described in section 4(x)(1) paid by all
    29  employers. Each item in each factor shall be computed with
    30  respect to the twelve-month period ending on the computation
    20020H2728B4063                  - 9 -

     1  date: Provided, That should the computed State Adjustment Factor
     2  for calendar year 1984, and any year thereafter exceed one and
     3  five-tenths per centum (1.5%), such excess over one and five-
     4  tenths per centum (1.5%) shall be added to the computed State
     5  Adjustment Factor for the following year or years. Any account
     6  carryover prior to 2002 shall not be included in the
     7  calculations for 2002 or thereafter.
     8     * * *
     9     Section 4.  Section 302(a)(1) of the act, amended July 21,
    10  1983 (P.L.68, No.30), is amended to read:
    11     Section 302.  Establishment and Maintenance of Employer's
    12  Reserve Accounts.--The department shall establish and maintain
    13  for each employer a separate employer's reserve account in the
    14  following manner:
    15     (a)  (1)  Such account shall be credited with all
    16  contributions paid by such employer for periods subsequent to
    17  June thirtieth, one thousand nine hundred forty-eight. Such
    18  account shall be charged with an amount determined by
    19  multiplying the wages of compensated employes of such employer
    20  for the twelve month period ended June thirtieth, one thousand
    21  nine hundred forty-nine, by the state experience heretofore used
    22  in determining rates of contributions for the year one thousand
    23  nine hundred forty-nine. Subsequent to January 1, 1984, such
    24  account shall be charged with all compensation, including
    25  dependents' allowances, paid to each individual who received
    26  from such employer wage credits constituting the base of such
    27  compensation, in the proportion that such wage credits with such
    28  employer bears to the total wage credits received by such
    29  individual from all employers: Provided, That if the department
    30  finds that such individual was separated from his most recent
    20020H2728B4063                 - 10 -

     1  work for such employer due to being discharged for willful
     2  misconduct connected with such work, or due to his leaving such
     3  work without good cause attributable to his employment, or due
     4  to his being separated from such work under conditions which
     5  would be disqualifying for benefits under the provisions of
     6  section 3, thereafter no compensation paid to such individual
     7  with respect to any week of unemployment occurring subsequent to
     8  such separation, which is based upon wages paid by such employer
     9  with respect to employment prior to such separation, shall be
    10  charged to such employer's account under the provisions of this
    11  subsection (a); provided, such employer has filed a notice with
    12  the department in accordance with its rules and regulations and
    13  within the time limits prescribed therein; and provided if the
    14  department finds that such individual's unemployment is directly
    15  caused by a major natural disaster declared by the President
    16  pursuant to section 102(1) of the Disaster Relief Act of 1970
    17  (P.L.91-606) and such individual would have been eligible for
    18  disaster unemployment assistance as provided in section 240 of
    19  that act with respect to such unemployment but for the receipt
    20  of unemployment compensation, no compensation paid to such
    21  individual with respect to any week of unemployment occurring
    22  due to such natural disaster, to a maximum of the eight weeks
    23  immediately following the President's declaration of emergency,
    24  shall be charged to the employer's account under the provisions
    25  of this subsection.
    26     * * *
    27     Section 5.  Section 401(f) of the act, amended September 27,
    28  1971 (P.L.460, No.108), is amended to read:
    29     Section 401.  Qualifications Required to Secure
    30  Compensation.--Compensation shall be payable to any employe who
    20020H2728B4063                 - 11 -

     1  is or becomes unemployed, and who--
     2     * * *
     3     (f)  Has earned, subsequent to his separation from work under
     4  circumstances which are disqualifying under the provisions of
     5  subsections 402(b), 402(e) and 402(h) of this act, remuneration
     6  for services in an amount equal to or in excess of [six (6)] ten
     7  (10) times his weekly benefit rate [irrespective of whether or
     8  not such services were] in "employment" as defined in this
     9  act[.] and earned wages for "employment" as defined in this act,
    10  in ten (10) separate "weeks." The provisions of this subsection
    11  shall not apply to a suspension of work by an individual
    12  pursuant to a leave of absence granted by his last employer,
    13  provided such individual has made a reasonable effort to return
    14  to work with such employer upon the expiration of his leave of
    15  absence.
    16     * * *
    17     Section 6.  Section 402(b) of the act, amended October 22,
    18  1981 (P.L.301, No. 106), is amended and the section is amended
    19  by adding a subsection to read:
    20     Section 402.  Ineligibility for Compensation.--An employe
    21  shall be ineligible for compensation for any week--
    22     * * *
    23     (b)  In which his unemployment is due to voluntarily leaving
    24  work without cause of a necessitous and compelling nature
    25  attributable to his employment, irrespective of whether or not
    26  such work is in "employment" as defined in this act: Provided,
    27  That a voluntary leaving work because of a work-related
    28  disability if the employer is able to provide other suitable
    29  work, shall be deemed not a cause of a necessitous and
    30  compelling nature attributable to his employment: And provided
    20020H2728B4063                 - 12 -

     1  further, That no employe shall be deemed to be ineligible under
     2  this subsection where as a condition of continuing in employment
     3  such employe would be required to join or remain a member of a
     4  company union or to resign from or refrain from joining any bona
     5  fide labor organization, or to accept wages, hours or conditions
     6  of employment not desired by a majority of the employes in the
     7  establishment or the occupation, or would be denied the right of
     8  collective bargaining under generally prevailing conditions, and
     9  that in determining whether or not an employe has left his work
    10  voluntarily without cause of a necessitous and compelling nature
    11  attributable to his employment, the department shall give
    12  consideration to the same factors, insofar as they are
    13  applicable, provided, with respect to the determination of
    14  suitable work under section four (t): And provided further, That
    15  the provisions of this subsection shall not apply in the event
    16  of a stoppage of work which exists because of a labor dispute
    17  within the meaning of subsection (d). Provided further, That no
    18  otherwise eligible claimant shall be denied benefits for any
    19  week in which his unemployment is due to exercising the option
    20  of accepting a layoff, from an available position pursuant to a
    21  labor-management contract agreement, or pursuant to an
    22  established employer plan, program or policy: Provided further,
    23  That a claimant shall not be disqualified for voluntarily
    24  leaving work, which is not suitable employment to enter training
    25  approved under section 236(a)(1) of the Trade Act of 1974. For
    26  purposes of this subsection the term "suitable employment" means
    27  with respect to a claimant, work of a substantially equal or
    28  higher skill level than the claimant's past "adversely affected
    29  employment" (as defined in section 247 of the Trade Act of
    30  1974), and wages for such work at not less than eighty per
    20020H2728B4063                 - 13 -

     1  centum of the worker's "average weekly wage" (as defined in
     2  section 247 of the Trade Act of 1974).
     3     * * *
     4     (e.1)  In which his unemployment is due to his discharge or
     5  temporary suspension from work due to his failure to pass a drug
     6  or alcohol test administered by an independent laboratory.
     7  Furthermore, the laboratory report indicating, reporting,
     8  showing or demonstrating the existence or nonexistence of any
     9  drug or alcohol shall be deemed as admissible evidence in and of
    10  itself; and therefore, the laboratory report shall be considered
    11  medical fact. No one shall have the burden of producing
    12  witnesses to establish the fact of the laboratory results.
    13     * * *
    14     Section 7.  Section 402.4(a) of the act, added July 21, 1983
    15  (P.L.68, No.30), is amended to read:
    16     Section 402.4.  Eligibility of Officers of a Corporation
    17  Deemed to be Self-Employed Persons.--(a)  Notwithstanding any
    18  other provision of this act, an officer of a corporation deemed
    19  to be a self-employed person because he exercised a substantial
    20  degree of control over the corporation and who becomes
    21  unemployed due to the fact that the corporation has a cessation
    22  of business through no fault of its own, such as, but not
    23  limited to, a disaster or enters into involuntary bankruptcy
    24  proceedings under the provisions of Chapter 7, Title 11 of the
    25  United States Code shall be entitled to receive unemployment
    26  compensation under this act: Provided, That the wages paid to
    27  the officer of a corporation deemed to be a self-employed person
    28  were mandatorily subject to this act.
    29     * * *
    30     Section 8.  Section 404(a), (b), (c), (d)(1) and (e)(1) and
    20020H2728B4063                 - 14 -

     1  (2) of the act, amended March 24, 1964 (Sp.Sess., P.L.53, No.1),
     2  July 17, 1968 (P.L.21, No.6), July 10, 1980 (P.L.521, No.108),
     3  July 21, 1983 (P.L.68, No.30) and October 19, 1988 (P.L.818,
     4  No.109), is amended to read:
     5     Section 404.  Rate and Amount of Compensation.--Compensation
     6  shall be paid to each eligible employe in accordance with the
     7  following provisions of this section except that compensation
     8  payable with respect to weeks ending in benefit years which
     9  begin prior to the first day of January [1989] 2002 shall be
    10  paid on the basis of the provisions of this section in effect at
    11  the beginning of such benefit years.
    12     (a)  [(1)]  The employe's weekly benefit rate shall be
    13  computed as [(1) the amount appearing in Part B of the Table
    14  Specified for the Determination of Rate and Amount of Benefits
    15  on the line on which in Part A there appears his "highest
    16  quarterly wage," or (2)] fifty per centum (50%) of his [full-
    17  time weekly] average working wage[, whichever is greater.] in
    18  the employe's base year: Provided the employe's base year wages
    19  are sufficient to qualify for the minimum weekly benefit of
    20  thirty-five dollars ($35) or more. 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
    20020H2728B4063                 - 15 -

     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     (b)  The "highest quarterly wages" of an employe shall be the
     8  total wages (computed to the nearest dollar) which were paid to
     9  such employe in that calendar quarter in which such total wages
    10  were highest during the base year.]
    11     (c)  [Any] The total amount of benefits to which an otherwise
    12  eligible employe [who has base year wages in an amount equal to,
    13  or in excess, of the amount of qualifying wages appearing in
    14  Part C of the Table Specified for the Determination of Rate and
    15  Amount of Benefits on the line on which in Part B there appears]
    16  is entitled is his weekly benefit rate, as determined under
    17  subsection (a) of this section, [shall be entitled during his
    18  benefit year to the amount appearing in Part D on said line]
    19  multiplied by the number of qualifying credit weeks during his
    20  base year, up to a maximum of twenty-six (26): Provided he had
    21  eighteen (18) or more "credit weeks" during his base year [or
    22  Part E provided he had sixteen (16) or seventeen (17) "credit
    23  weeks" during his base year]. Notwithstanding any other
    24  provision of this act, any employe with less than [sixteen (16)]
    25  eighteen (18) "credit weeks" during the employe's base year
    26  shall be ineligible to receive any amount of compensation.
    27     (d)  (1)  Notwithstanding any other provisions of this
    28  section each eligible employe who is unemployed with respect to
    29  any week ending subsequent to [July 1, 1980] January 1, 2002,
    30  shall be paid, with respect to such week, compensation in an
    20020H2728B4063                 - 16 -

     1  amount equal to his weekly benefit rate less the total of (i)
     2  the remuneration, if any, paid or payable to him with respect to
     3  such week for services performed which is in excess of his
     4  partial benefit credit and (ii) vacation pay, if any, which is
     5  in excess of his partial benefit credit, [except when paid to an
     6  employe who is permanently or indefinitely separated from his
     7  employment.] and (iii) any other payment, if any, which is in
     8  excess of his partial benefit credit, that the employer would be
     9  required to report to the department on the quarterly report for
    10  unemployment compensation, irrespective of the limit on the
    11  amount of wages subject to contributions. These payments shall
    12  include, but are not limited to, severance, separation or
    13  termination pay paid or payable to him.
    14     * * *
    15          (e)  [(1)  Table Specified for the Determination of
    16                    Rate and Amount of Benefits

    17  Part A
    18  Highest        Part B      Part C      Part D      Part E
    19  Quarterly      Rate of   Qualifying  Amount of Compensation
    20    Wage      Compensation   Wages
    21  $ 800-812       $35       $1320       $ 910       $ 560
    22    813-837        36        1360         936         576
    23    838-862        37        1400         962         592
    24    863-887        38        1440         988         608
    25    888-912        39        1480        1014         624
    26    913-937        40        1520        1040         640
    27    938-962        41        1560        1066         656
    28    963-987        42        1600        1092         672
    29    988-1012       43        1640        1118         688
    20020H2728B4063                 - 17 -

     1   1013-1037       44        1680        1144         704
     2   1038-1062       45        1720        1170         720
     3   1063-1087       46        1760        1196         736
     4   1088-1112       47        1800        1222         752
     5   1113-1162       48        1840        1248         768
     6   1163-1187       49        1880        1274         784
     7   1188-1212       50        1920        1300         800
     8   1213-1237       51        1960        1326         816
     9   1238-1262       52        2000        1352         832
    10   1263-1287       53        2040        1378         848
    11   1288-1312       54        2080        1404         864
    12   1313-1337       55        2120        1430         880
    13   1338-1362       56        2160        1456         896
    14   1363-1387       57        2200        1482         912
    15   1388-1412       58        2240        1508         928
    16   1413-1437       59        2280        1534         944
    17   1438-1462       60        2320        1560         960
    18   1463-1487       61        2360        1586         976
    19   1488-1512       62        2400        1612         992
    20   1513-1537       63        2440        1638        1008
    21   1538-1562       64        2480        1664        1024
    22   1563-1587       65        2520        1690        1040
    23   1588-1612       66        2560        1716        1056
    24   1613-1637       67        2600        1742        1072
    25   1638-1662       68        2640        1768        1088
    26   1663-1687       69        2680        1794        1104
    27   1688-1712       70        2720        1820        1120
    28   1713-1737       71        2760        1846        1136
    29   1738-1762       72        2800        1872        1152
    30   1763-1787       73        2840        1898        1168
    20020H2728B4063                 - 18 -

     1   1788-1812       74        2880        1924        1184
     2   1813-1837       75        2920        1950        1200
     3   1838-1862       76        2960        1976        1216
     4   1863-1887       77        3000        2002        1232
     5   1888-1912       78        3040        2028        1248
     6   1913-1937       79        3080        2054        1264
     7   1938-1962       80        3120        2080        1280
     8   1963-1987       81        3160        2106        1296
     9   1988-2012       82        3200        2132        1312
    10   2013-2037       83        3240        2158        1328
    11   2038-2062       84        3280        2184        1344
    12   2063-2087       85        3320        2210        1360
    13   2088-2112       86        3360        2236        1376
    14   2113-2137       87        3400        2262        1392
    15   2138-2162       88        3440        2288        1408
    16   2163-2187       89        3480        2314        1424
    17   2188-2212       90        3520        2340        1440
    18   2213-2237       91        3560        2366        1456
    19   2238-2262       92        3600        2392        1472
    20   2263-2287       93        3640        2418        1488
    21   2288-2312       94        3680        2444        1504
    22   2313-2337       95        3720        2470        1520
    23   2338-2362       96        3760        2496        1536
    24   2363-2387       97        3800        2522        1552
    25   2388-2412       98        3840        2558        1568
    26   2413-2437       99        3880        2574        1584
    27   2438-2462      100        3920        2600        1600
    28   2463-2487      101        3960        2626        1616
    29   2488-2512      102        4000        2652        1632
    30   2513-2537      103        4040        2678        1648
    20020H2728B4063                 - 19 -

     1   2538-2562      104        4080        2704        1664
     2   2563-2587      105        4120        2730        1680
     3   2588-2612      106        4160        2756        1696
     4   2613-2637      107        4200        2782        1712
     5   2638-2662      108        4240        2808        1728
     6   2663-2687      109        4280        2834        1744
     7   2688-2712      110        4320        2860        1760
     8   2713-2737      111        4360        2886        1776
     9   2738-2762      112        4400        2912        1792
    10   2763-2787      113        4440        2938        1808
    11   2788-2812      114        4480        2964        1824
    12   2813-2837      115        4520        2990        1840
    13   2838-2862      116        4560        3016        1856
    14   2863-2887      117        4600        3042        1872
    15   2888-2912      118        4640        3068        1888
    16   2913-2937      119        4680        3094        1904
    17   2938-2962      120        4720        3120        1920
    18   2963-2987      121        4760        3146        1936
    19   2988-3012      122        4800        3172        1952
    20   3013-3037      123        4840        3198        1968
    21   3038-3062      124        4880        3224        1984
    22   3063-3087      125        4920        3250        2000
    23   3088-3112      126        4960        3276        2016
    24   3113-3137      127        5000        3302        2032
    25   3138-3162      128        5040        3328        2048
    26   3163-3187      129        5080        3354        2064
    27   3188-3212      130        5120        3380        2080
    28   3213-3237      131        5160        3406        2096
    29   3238-3262      132        5200        3432        2112
    30   3263-3287      133        5240        3458        2128
    20020H2728B4063                 - 20 -

     1   3288-3312      134        5280        3484        2144
     2   3313-3337      135        5320        3510        2160
     3   3338-3362      136        5360        3536        2176
     4   3363-3387      137        5400        3562        2192
     5   3388-3412      138        5440        3588        2208
     6   3413-3437      139        5480        3614        2224
     7   3438-3462      140        5520        3640        2240
     8   3463-3487      141        5560        3666        2256
     9   3488-3512      142        5600        3692        2272
    10   3513-3537      143        5640        3718        2288
    11   3538-3562      144        5680        3744        2304
    12   3563-3587      145        5720        3770        2320
    13   3588-3612      146        5760        3796        2336
    14   3613-3637      147        5800        3822        2352
    15   3638-3662      148        5840        3848        2368
    16   3663-3687      149        5880        3874        2384
    17   3688-3712      150        5920        3900        2400
    18   3713-3737      151        5960        3926        2416
    19   3738-3762      152        6000        3952        2432
    20   3763-3787      153        6040        3978        2448
    21   3788-3812      154        6080        4004        2464
    22   3813-3837      155        6120        4030        2480
    23   3838-3862      156        6160        4056        2496
    24   3863-3887      157        6200        4082        2512
    25   3888-3912      158        6240        4108        2528
    26   3913-3937      159        6280        4134        2544
    27   3938-3962      160        6320        4170        2560
    28   3963-3987      161        6360        4196        2576
    29   3988-4012      162        6400        4212        2592
    30   4013-4037      163        6440        4238        2608
    20020H2728B4063                 - 21 -

     1   4038-4062      164        6480        4264        2624
     2   4063-4087      165        6520        4290        2640
     3   4088-4112      166        6560        4316        2656
     4   4113-4137      167        6600        4342        2672
     5   4138-4162      168        6640        4368        2688
     6   4163-4187      169        6680        4394        2704
     7   4188-4212      170        6720        4420        2720
     8   4213-4237      171        6760        4446        2736
     9   4238-4262      172        6800        4472        2752
    10   4263-4287      173        6840        4498        2768
    11   4288-4312      174        6880        4524        2784
    12   4313-4337      175        6920        4550        2800
    13   4338-4362      176        6960        4576        2816
    14   4363-4387      177        7000        4602        2832
    15   4388-4412      178        7040        4628        2848
    16   4413-4437      179        7080        4654        2864
    17   4438-4462      180        7120        4680        2880
    18   4463-4487      181        7160        4706        2896
    19   4488-4512      182        7200        4732        2912
    20   4513-4537      183        7240        4758        2928
    21   4538-4562      184        7280        4784        2944
    22   4563-4587      185        7320        4810        2960
    23   4588-4612      186        7360        4836        2976
    24   4613-4637      187        7400        4862        2992
    25   4638-4662      188        7440        4888        3008
    26   4663-4687      189        7480        4914        3024
    27   4688-4712      190        7520        4940        3040
    28   4713-4737      191        7560        4966        3056
    29   4738-4762      192        7600        4992        3072
    30   4763-4787      193        7640        5018        3088
    20020H2728B4063                 - 22 -

     1   4788-4812      194        7680        5044        3104
     2   4813-4837      195        7720        5070        3120
     3   4838-4862      196        7760        5096        3136
     4   4863-4887      197        7800        5122        3152
     5   4888-4912      198        7840        5148        3168
     6   4913-4937      199        7880        5174        3184
     7   4938-4962      200        7920        5200        3200
     8   4963-4987      201        7960        5226        3216
     9   4988-5012      202        8000        5252        3232
    10   5013-5037      203        8040        5278        3248
    11   5038-5062      204        8080        5304        3264
    12   5063 or more   205       *8120        5330        3280
    13  *(this figure subject to section 401(a)).]
    14     (2)  (i)  The [Table Specified for the Determination of Rate
    15  and Amount of Benefits shall be extended or contracted annually,
    16  automatically by regulations promulgated by the secretary in
    17  accordance with the following procedure: for calendar year one
    18  thousand nine hundred seventy-two and for all subsequent
    19  calendar years, to a point where the] maximum weekly benefit
    20  rate [equals] shall equal sixty-six and two-thirds per centum of
    21  the average weekly wage for the [twelve-month] thirty-six-month
    22  period ending June 30 preceding each calendar year. If the
    23  maximum weekly benefit rate is not a multiple of one dollar
    24  ($1), it shall be [increased by one dollar ($1) and then]
    25  rounded to the next lower multiple of one dollar ($1)[:
    26  Provided, however, That effective with benefit years beginning
    27  the first Sunday at least thirty days after the effective date
    28  of this amendatory act, the per centum stated in this paragraph
    29  for establishing the maximum weekly benefit rate shall be sixty-
    30  two and two-thirds per centum for the remainder of calendar year
    20020H2728B4063                 - 23 -

     1  one thousand nine hundred seventy-four, sixty-four and two-
     2  thirds per centum for the calendar year one thousand nine
     3  hundred seventy-five, and sixty-six and two-thirds per centum
     4  for the calendar year one thousand nine hundred seventy-six and
     5  for all subsequent calendar years.
     6     The Table Specified for the Determination of Rate and Amount
     7  of Benefits as so extended or contracted shall be effective only
     8  for those claimants whose benefit years begin on or after the
     9  first day of January of such calendar year.]
    10     (ii)  For the purpose of determining the maximum weekly
    11  benefit rate, the Pennsylvania average weekly wage in covered
    12  employment shall be computed on the basis of the total wages
    13  reported (irrespective of the limit on the amount of wages
    14  subject to contributions) for the [twelve-month] thirty-six-
    15  month period ending June 30 and this amount shall be divided by
    16  the average monthly number of covered workers (determined by
    17  dividing the total covered employment reported for the same
    18  [fiscal year by twelve] thirty-six-month period by thirty-six)
    19  to determine the average annual wage. The average annual wage
    20  thus obtained shall be divided by fifty-two and the average
    21  weekly wage thus determined rounded to the nearest cent. If the
    22  maximum weekly benefit rate as determined under paragraph (i) of
    23  this subsection is less than the maximum weekly benefit rate
    24  established for calendar year two thousand one, the maximum
    25  weekly benefit rate will be frozen until the calendar year in
    26  which the new maximum weekly benefit rate as determined under
    27  paragraph (i) of this subsection exceeds the maximum weekly
    28  benefit rate for calendar year two thousand one.
    29     * * *
    30     Section 9.  Section 501(b) of the act, amended May 29, 1945
    20020H2728B4063                 - 24 -

     1  (P.L.1145, No.408), is amended to read:
     2     Section 501.  Determination of Compensation Appeals.--* * *
     3     (b)  Notice shall be given in writing to the last employer of
     4  the claimant stating that an application has been filed by the
     5  designated employe. Furthermore, the last employer and the
     6  separating employer shall be furnished a copy of any written
     7  statement provided by the claimant or on the claimant's behalf,
     8  relating to that individual employer's employment or separation
     9  from employment of the claimant, if the employer makes such a
    10  request in writing. The claimant has the same right to receive a
    11  copy of any written statement provided by his last or separating
    12  employer, provided he makes such written request.
    13     * * *
    14     Section 10.  Section 502 of the act, amended July 10, 1980
    15  (P.L.521, No.108), is amended to read:
    16     Section 502.  Decision of Referee; Further Appeals and
    17  Reviews.--Where an appeal from the determination or revised
    18  determination, as the case may be, of the department is taken, a
    19  referee shall, after affording the parties and the department
    20  reasonable opportunity for a fair hearing, affirm, modify, or
    21  reverse such findings of fact and the determination or revised
    22  determination, as the case may be, of the department as to him
    23  shall appear just and proper. The parties and their attorneys or
    24  other representatives of record and the department shall be duly
    25  notified of the time and place of the referee's hearing and of
    26  the referee's decision, and the reasons therefor, which shall be
    27  deemed the final decision of the board, unless an appeal is
    28  filed therefrom, within fifteen days after the date of such
    29  decision the board acts on its own motion, to review the
    30  decision of the referee. A memorandum of testimony of any
    20020H2728B4063                 - 25 -

     1  hearing before any referee shall be made and be preserved for a
     2  period of ninety days following expiration of the period for
     3  filing an appeal from the final decision rendered in the case.
     4     Section 11.  Section 505 of the act, amended April 23, 1942
     5  (Sp.Sess., P.L.60, No.23), is amended to read:
     6     Section 505.  Rules of Procedure.--(a) (1)  The manner in
     7  which appeals shall be taken, the reports thereon required from
     8  the department, the claimant and employers, and the conduct of
     9  hearings and appeals, shall be in accordance with rules of
    10  procedure prescribed by the board whether or not such rules
    11  conform to common law or statutory rules of evidence and other
    12  technical rules of procedure.
    13     (2)  When the same or substantially similar evidence is
    14  relevant and material to the matter in issue in applications and
    15  claims filed by more than one individual or in multiple
    16  applications and claims filed by a single individual the same
    17  time and place for considering each such application and claim
    18  may be fixed, hearings thereon jointly conducted, a single
    19  record of the proceedings made and evidence introduced with
    20  respect to any application or claim considered as introduced
    21  with respect to all of such applications or claims: Provided,
    22  That in the judgment of the board or referee having jurisdiction
    23  of the proceeding such consideration will not be prejudicial to
    24  any party.
    25     (b)  The board and its referees shall conduct their hearings
    26  de novo and may rule on any issue presented by the evidence. In
    27  their decisions they shall not be limited to ruling only on
    28  those matters specifically ruled upon in the department's
    29  initial determination.
    30     (c)  Where the appellant, after having been duly notified
    20020H2728B4063                 - 26 -

     1  according to law as to the time and place of the hearing, fails
     2  to appear for the hearing on time, the referee shall dismiss the
     3  appeal with prejudice and need not receive testimony or evidence
     4  as to the merits of the case or issue any decision with regard
     5  to the merits of the case.
     6     Section 12.  Section 509 of the act, amended April 14, 1976
     7  (P.L.113, No.50) and repealed in part April 28, 1978 (P.L.202,
     8  No.53), is amended to read:
     9     Section 509.  Finality of Decisions.--(a)  Any decision made
    10  by the department or any referee or the board shall not be
    11  subject to collateral attack as to any application claim or
    12  claims covered thereby or otherwise be disturbed, unless
    13  appealed from.
    14     (b)  Subject to appeal proceedings and judicial review, any
    15  right, fact or matter in issue which was directly passed upon or
    16  necessarily involved in any decision of a referee or the board
    17  or the Court and which has become final shall be conclusive for
    18  all purposes of this act and shall not be subject to collateral
    19  attack as among all affected parties who had notice of such
    20  decision: Provided, however, That whenever an appeal involves a
    21  question as to whether services were performed by a claimant in
    22  employment or for an employer or whether remuneration paid
    23  constituted wages, a decision thereon shall not be conclusive as
    24  to an employing entity's liability for contributions unless the
    25  employing entity was given special notice of such issue and of
    26  the pendency of the appeal and was afforded a reasonable
    27  opportunity by the referee or the board to adduce evidence
    28  bearing on such question.
    29     (c)  No finding of fact or law, judgment, conclusion or final
    30  order made with respect to a claim for unemployment compensation
    20020H2728B4063                 - 27 -

     1  under this act may be conclusive or binding or used as evidence
     2  in any separate or subsequent action or proceeding in another
     3  forum, except proceedings under this act, regardless of whether
     4  the prior action was between the same or related parties or
     5  involved the same facts and issues.
     6     Section 13.  The provisions of this act are severable. If any
     7  provision of this act or its application to any person or
     8  circumstance is held invalid, the invalidity shall not affect
     9  other provisions or applications of this act which can be given
    10  effect without the invalid provision or application.
    11     Section 14.  This act shall take effect immediately.













    J15L43DMS/20020H2728B4063       - 28 -