PRIOR PRINTER'S NO. 2399 PRINTER'S NO 2650
No. 1973 Session of 1993
INTRODUCED BY BELFANTI, GIGLIOTTI, McGEEHAN, KASUNIC, JAROLIN,
OLASZ, LEDERER, STABACK, DALEY, WILLIAMS, LAUGHLIN, JOSEPHS,
FAJT, VEON, TRELLO AND MICHLOVIC, JUNE 28, 1993
AS REPORTED FROM COMMITTEE ON LABOR RELATIONS, HOUSE OF
REPRESENTATIVES, AS AMENDED, OCTOBER 13, 1993
AN ACT
1 Amending the act of July 14, 1961 (P.L.637, No.329), entitled
2 "An act relating to the payment of wages or compensation for
3 labor or services; providing for regular pay days; conferring
4 powers and duties upon the Department of Labor and Industry,
5 including powers and duties with respect to the civil
6 collection of wages; providing civil and criminal penalties
7 for violations of the act; providing for their collection and
8 disposition and providing for additional civil damages,"
9 providing for duty of successor employer to pay back wages;
10 and further providing for enforcement.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The act of July 14, 1961 (P.L.637, No.329), known
14 as the Wage Payment and Collection Law, is amended by adding a
15 section to read:
16 Section 6.1. Successor Employer's Duty to Pay Back Wages.-- <--
17 (A) A successor employer shall be responsible financially, upon <--
18 the sale HIS PURCHASE of the company, for back wages due to <--
19 employes of the previous employer. These wages may be paid in <--
20 installments. PREDECESSOR EMPLOYER. IF A SUCCESSOR EMPLOYER <--
21 PURCHASES ONLY A PORTION OF THE COMPANY, THE SUCCESSOR EMPLOYER
1 SHALL BE RESPONSIBLE FINANCIALLY ONLY FOR THE BACK WAGES DUE TO
2 THE EMPLOYES OF THAT PORTION WHICH HE PURCHASES.
3 (B) FOR PURPOSES OF THIS SECTION, THE TERM "SUCCESSOR
4 EMPLOYER" SHALL MEAN AN EMPLOYER WHO HAS OBTAINED, BY SALE,
5 CONVEYANCE, ASSIGNMENT OR OTHER TRANSFER, A COMPANY OR A PART OF
6 A COMPANY FROM ANOTHER EMPLOYER.
7 Section 2. Section 8 of the act, amended July 14, 1977
8 (P.L.82, No.30), is amended to read:
9 Section 8. Enforcement.--(a) The Secretary of Labor and
10 Industry shall have the duty, but not the exclusive right, to
11 enforce and administer the provisions of this act, to
12 investigate any alleged violations of this act and to institute
13 prosecutions and actions as provided hereunder. Nothing in this
14 act shall authorize the secretary to initiate a civil action for
15 unpaid wages which are subject to disposition under grievance
16 and arbitration procedures of a collective bargaining agreement.
17 (b) The Department of Labor and Industry shall have the
18 power to make rules and regulations for the administration of
19 this act.
20 (c) Every employer shall keep open to inspection by the
21 secretary or his authorized representative, all payroll records
22 or other records or documents relative to the enforcement of
23 this act. Such inspection may be made by the secretary or his
24 authorized representative at any reasonable time. Every employer
25 shall permit the secretary or any authorized representative to
26 interrogate any employe in the place of employment and during
27 work hours with respect to such records or documents. Where such
28 records are maintained at a central record keeping office
29 outside of the Commonwealth, such records shall be made
30 available for inspection at the place of employment within seven
19930H1973B2650 - 2 -
1 calendar days following verbal or written notice from the
2 secretary or his authorized representative. Where a microfilm or
3 any other method is authorized for record keeping purposes, the
4 employer shall make available to the secretary or his authorized
5 representative, the equipment which is necessary to facilitate
6 review of the records.
7 (d) The department may require a company which has filed IF <--
8 A COMPANY FILES a bankruptcy petition under 11 U.S.C. Ch. 11
9 (relating to reorganization) to, THE DEPARTMENT MAY REQUEST THE <--
10 TRUSTEE IN BANKRUPTCY OR THE BANKRUPTCY JUDGE TO REQUIRE THAT
11 THE COMPANY file a bond or other assurance relating to the
12 payment of wages of salaried and nonsalaried employes of the
13 company. The department shall monitor payments or wages by a
14 company which has filed a petition under 11 U.S.C. Ch. 11.
15 Section 3. This act shall take effect in 60 days.
E21L43DGS/19930H1973B2650 - 3 -