PRINTER'S NO.  820

  

THE GENERAL ASSEMBLY OF PENNSYLVANIA

  

SENATE BILL

 

No.

789

Session of

2011

  

  

INTRODUCED BY FOLMER, WAUGH, YAW, ALLOWAY AND MENSCH, MARCH 9, 2011

  

  

REFERRED TO LABOR AND INDUSTRY, MARCH 9, 2011  

  

  

  

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 and for establishment and maintenance of

17

employer's reserve accounts; providing for relief from

18

charges; further providing for qualifications required to

19

secure compensation, for ineligibility for compensation and

20

for rate and amount of compensation; providing for effect of

21

severance pay on benefits; and further providing for rules of

22

procedure.

23

The General Assembly of the Commonwealth of Pennsylvania

24

hereby enacts as follows:

25

Section 1.  Section 4(g.1) of the act of December 5, 1936

26

(2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment

27

Compensation Law, added July 10, 1980 (P.L.521, No.108), is

28

amended to read:

 


1

Section 4.  Definitions.--The following words and phrases, as

2

used in this act, shall have the following meanings, unless the

3

context clearly requires otherwise.

4

* * *

5

(g.1)  "Credit week" means any calendar week in an

6

individual's base year with respect to which he was paid in

7

employment as defined in this act, remuneration of not less than

8

[fifty dollars ($50)] 16 times the minimum hourly wage required

9

by the act of January 17, 1968 (P.L.11, No.5), known as The

10

Minimum Wage Act of 1968. Only one credit week can be

11

established with respect to any one calendar week.

12

* * *

13

Section 2.  Section 302 of the act, amended or added March

14

24, 1964 (Sp.Sess., P.L.53, No.1), July 6, 1977 (P.L.41, No.22),

15

July 21, 1983 (P.L.68, No.30), December 19, 1996 (P.L.1476,

16

No.189) and December 9, 2002 (P.L.1330, No.156), is amended to

17

read:

18

Section 302.  Establishment and Maintenance of Employer's

19

Reserve Accounts.--The department shall establish and maintain

20

for each employer a separate employer's reserve account in the

21

following manner:

22

(a)  [(1)  Such account shall be credited with all

23

contributions paid by such employer for periods subsequent to

24

June thirtieth, one thousand nine hundred forty-eight. Such

25

account shall be charged with an amount determined by

26

multiplying the wages of compensated employes of such employer

27

for the twelve month period ended June thirtieth, one thousand

28

nine hundred forty-nine, by the state experience heretofore used

29

in determining rates of contributions for the year one thousand

30

nine hundred forty-nine. Subsequent to January 1, 1984, such] An

- 2 -

 


1

employer's account shall be charged with all compensation,

2

including dependents' allowances, paid to each individual who

3

received from such employer wage credits constituting the base

4

of such compensation, in the proportion that such wage credits

5

with such employer bears to the total wage credits received by

6

such individual from all employers[: Provided, That if the

7

department finds that such individual was separated from his

8

most recent work for such employer due to being discharged for

9

[willful] misconduct connected with such work, or due to his

10

leaving such work without good cause attributable to his

11

employment, or due to his being separated from such work under

12

conditions which would result in disqualification for benefits

13

under the provisions of section 3 or section 402(e.1),

14

thereafter no compensation paid to such individual with respect

15

to any week of unemployment occurring subsequent to such

16

separation, which is based upon wages paid by such employer with

17

respect to employment prior to such separation, shall be charged

18

to such employer's account under the provisions of this

19

subsection (a); provided, such employer has filed a notice with

20

the department in accordance with its rules and regulations and

21

within the time limits prescribed therein; and provided if the

22

department finds that such individual's unemployment is directly

23

caused by a major natural disaster declared by the President

24

pursuant to section 102(1) of the Disaster Relief Act of 1970

25

(P.L.91-606) and such individual would have been eligible for

26

disaster unemployment assistance as provided in section 240 of

27

that act with respect to such unemployment but for the receipt

28

of unemployment compensation, no compensation paid to such

29

individual with respect to any week of unemployment occurring

30

due to such natural disaster, to a maximum of the eight weeks

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1

immediately following the President's declaration of emergency,

2

shall be charged to the employer's account under the provisions

3

of this subsection.

4

(2)  Notwithstanding the provisions of paragraph (1) of this

5

subsection, if the department finds that an individual

6

subsequent to separation from his work is engaged in part-time

7

work for a base year employer, other than a base year employer

8

from whom he has separated, compensation paid to such individual

9

with respect to any week of unemployment occurring subsequent to

10

such separation and while such part-time work continues without

11

material change, shall not be charged to the account of such

12

part-time employer; provided, such part-time employer has filed

13

a notice with the department in accordance with its rules and

14

regulations and within the time limits prescribed therein.

15

(2.1)  Notwithstanding the provisions of paragraph (1) of

16

this subsection, if the department finds that an individual was

17

separated from his most recent work for such employer due to a

18

cessation of business of eighteen months or less caused by a

19

disaster, compensation paid to such individual with respect to

20

any week of unemployment occurring subsequent to such separation

21

shall not be charged to the account of such employer; provided,

22

such employer has filed a notice with the department in

23

accordance with its rules and regulations and within the time

24

limits prescribed therein.

25

(3)  The findings and determinations of the department under

26

this subsection (a) shall be subject to appeal in the manner

27

provided in this act for appeals from determinations of

28

compensation: Provided, That where the individual's eligibility

29

for compensation has been finally determined under the

30

provisions of Article V of this act, such determination shall

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1

not be subject to attack in proceedings under this section.

2

(4)  The reserve account of any employer who pays

3

contributions under this section shall not be charged with

4

respect to benefits paid to any individual whose base period

5

wages include wages for previously uncovered services as defined

6

in section 401(g) to the extent that the unemployment insurance

7

fund is reimbursed for such benefits pursuant to section 121 of

8

Public Law 94-566].

9

(b)  Any employer, at any time, may voluntarily pay into the

10

Unemployment Compensation Fund an amount in excess of the

11

contributions required to be paid under the provisions of this

12

act, and such amount shall be forthwith credited to his reserve

13

account. His rate of contribution shall be computed or

14

recomputed, as the case may be, with such amount included in the

15

calculation. To affect such employer's rate of contribution for

16

any year, such amount shall be paid not later than thirty days

17

following the mailing of notice of his rate of contribution for

18

such year: Provided, That for good cause, such time may be

19

extended by the department: And provided further, That such

20

amount, when paid as aforesaid, shall not be refunded or used as

21

a credit in the payment of contributions in whole or in part.

22

In no event shall any such amount be included in the computation

23

or recomputation for any year unless it is paid within one

24

hundred twenty days after the beginning of such year.

25

(c)  (1)  For the purpose of determining any employer's rate

26

of contribution for any year, the phrase "balance in an

27

employer's reserve account" as used in sections 301, 301.1 and

28

301.2 of this act shall mean the amount ascertained as of the

29

computation date by subtracting the amounts charged to his

30

reserve account from the amounts credited thereto including

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1

voluntary contributions. If, as of the computation date, the

2

amounts charged to his reserve account exceed the amounts

3

credited by an amount equivalent to more than twenty per centum

4

(20%) of his average annual payroll, the employer may elect,

5

subject to the provisions of section 301.1(f) of this act to

6

have his reserve account balance adjusted to a negative balance

7

equal to twenty per centum (20%) of his average annual payroll.

8

This subsection as amended shall apply to elections made after

9

December 31, 1986.

10

(2)  Notwithstanding the provisions of section 301.1(f) and

11

paragraph (1) of this subsection, for elections made on or after

12

January 1, 1984 and before May 1, 1986, if the amounts charged

13

to the employer's reserve account exceed the amounts credited by

14

an amount equivalent to more than ten per centum (10%) of his

15

average annual payroll, the department, after determining his

16

Reserve Ratio Factor shall, upon the election of the employer,

17

adjust his reserve account balance to a negative balance equal

18

to ten per centum (10%) of his average annual payroll. With

19

respect to future adjustments of negative balance accounts, the

20

secretary shall, upon the election of the employer, make

21

adjustments as follows:

22

(i)  In relation to adjustments made for the second time

23

after January 1, 1984 and before May 1, 1986, if the amounts

24

charged to his reserve account exceed the amounts credited by an

25

amount equivalent to more than fifteen per centum (15%) of his

26

average annual payroll, the department shall, upon the election

27

of the employer, adjust the reserve account balance to a

28

negative balance equal to fifteen per centum (15%) of his

29

average annual payroll.

30

(ii)  In relation to adjustments made for the third time

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1

after January 1, 1984 and before May 1, 1986, if the amounts

2

charged to his reserve account exceed the amounts credited by an

3

amount equivalent to more than twenty per centum (20%) of his

4

average annual payroll, the department shall, upon the election

5

of the employer, adjust his reserve account balance to a

6

negative balance equal to twenty per centum (20%) of his average

7

annual payroll.

8

(d)  The department shall terminate the reserve account of

9

any employer who has not paid contributions for a period of four

10

consecutive twelve month periods, ending June thirtieth in any

11

year.

12

(e)  Nothing contained in this act shall be construed to

13

grant to any employer any claim or right of withdrawal with

14

respect to any amount allocated to him from, or paid by him

15

into, the Unemployment Compensation Fund, except as provided in

16

section three hundred eleven hereof.

17

Section 3.  The act is amended by adding a section to read:

18

Section 302.1.  Relief from Charges.--Notwithstanding any

19

other provisions of this act assigning charges for compensation

20

paid to employes, the department shall relieve an employer of

21

charges for compensation in accordance with this section and

22

section 213 of this act.

23

(a)  Circumstances allowing relief:

24

(1)  If an individual was separated from his most recent work

25

for an employer due to being discharged for misconduct connected

26

with that work, or due to his leaving that work without good

27

cause attributable to his employment, or due to his being

28

separated from such work under conditions which would result in

29

disqualification for benefits under the provisions of section 3

30

or section 402(e.1), the employer shall be relieved of charges

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1

for compensation paid to the individual with respect to any week

2

of unemployment occurring subsequent to such separation. Relief

3

from charges under this paragraph terminates if the employe

4

returns to work for the employer.

5

(2)  If an individual's unemployment is directly caused by a

6

major natural disaster declared by the President of the United

7

States pursuant to section 102(1) of the Disaster Relief Act of

8

1970 (P.L.91-606) and the individual would have been eligible

9

for disaster unemployment assistance as provided in section 240

10

of the Disaster Relief Act of 1970 with respect to that

11

unemployment but for the receipt of unemployment compensation,

12

an employer shall be relieved of charges for compensation paid

13

to such individual with respect to any week of unemployment

14

occurring due to the natural disaster, to a maximum of the eight

15

weeks immediately following the declaration of emergency by the

16

President of the United States.

17

(3)  If an individual subsequent to separation from his work

18

is engaged in part-time work for a base year employer, other

19

than a base year employer from whom he has separated, the part-

20

time employer shall be relieved of charges for compensation paid

21

to the individual with respect to any week of unemployment

22

occurring subsequent to the separation and while such part-time

23

work continues without material change.

24

(4)  If the department finds that an individual was separated

25

from his most recent work for an employer due to a cessation of

26

business of eighteen months or less caused by a disaster, the

27

employer may be relieved of charges for compensation paid to

28

such individual with respect to any week of unemployment

29

occurring subsequent to that separation. Relief from charges

30

under this paragraph terminates if the employe returns to work

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1

for the employer.

2

(b)  Requests for relief from charges:

3

(1)  Except as provided in subsection (c), in order to be

4

granted relief from charges for compensation an employer must

5

file a request with the department in the manner provided, and

6

containing all information required, by the department's

7

regulations.

8

(2)  If an employer is requesting relief from charges on the

9

basis of a separation that occurs on or before the date the

10

claimant files an application for benefits or on the basis of

11

continuing part-time work, the following shall apply:

12

(i)  If the request is filed within thirty (30) days after

13

the date of the earliest notice issued by the department under

14

section 501(a) indicating that the claimant is eligible under

15

section 401(a) and relief is granted, relief will begin with the

16

earliest week for which the claimant is eligible for benefits

17

pursuant to the claimant's application for benefits.

18

(ii)  If the request is not filed within the time period

19

provided in subparagraph (i), relief, if granted by the

20

department, will begin with the earliest week ending fifteen

21

(15) or more days subsequent to the date the request is filed.

22

(3)  If an employer is requesting relief from charges on the

23

basis of a separation that occurs after the claimant files an

24

application for benefits, the following shall apply:

25

(i)  If the request is filed within thirty (30) days after

26

the date of the earliest notice issued by the department

27

indicating that the claimant is claiming benefits subsequent to

28

the separation and relief is granted, relief will begin with the

29

earliest week for which the claimant is eligible for benefits

30

following the last day worked.

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1

(ii)  If the request is not filed within the time period

2

provided in subparagraph (i), relief, if granted by the

3

department, will begin with the earliest week ending fifteen

4

(15) or more days subsequent to the date the request is filed.

5

(c)  Relief from charges without a request:

6

(1)  If a claimant is determined ineligible for benefits

7

under section 3 or section 402(b), (e) or (e.1) pursuant to a

8

notice of determination that has become final, the department

9

will grant relief from charges in accordance with subsection (a)

10

(1) to the employer from whom the claimant was separated,

11

beginning with the earliest week for which the claimant is

12

eligible for benefits following the week or weeks governed by

13

the notice of determination.

14

(2)  If a claimant is determined eligible for benefits under

15

section 402(b) pursuant to a notice of determination that has

16

become final, the department will grant or deny relief from

17

charges in accordance with subsection (a)(1) to the employer

18

from whom the claimant was separated, beginning with the

19

earliest week governed by the notice of determination, in

20

accordance with the following:

21

(i)  The department will grant relief from charges if the

22

claimant left work for the employer without good cause

23

attributable to the claimant's employment.

24

(ii)  The department will deny relief from charges if the

25

claimant left work for the employer with good cause attributable

26

to the claimant's employment.

27

(3)  Relief from charges granted to an employer remains in

28

effect for the purpose of benefits paid to the claimant pursuant

29

to a subsequent application for benefits if the relief has not

30

terminated in accordance with the provisions of this section.

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1

(d)  Employer information:

2

(1)  An employer that is granted relief from charges on the

3

basis of a claimant's separation from employment shall notify

4

the department within fifteen (15) days if the claimant returns

5

to work for the employer. The employer shall include with the

6

notification the claimant's name and Social Security number, the

7

employer's name and account number and the date when

8

reemployment commenced.

9

(2)  An employer that is granted relief from charges on the

10

basis of continuing part-time work shall notify the department

11

within fifteen (15) days if the employment situation of the

12

claimant changes. The employer shall include with the

13

notification the claimant's name and Social Security number and

14

the employer's name and account number.

15

(e)  General provisions:

16

(1)  Where the individual's eligibility for compensation has

17

been finally determined under the provisions of Article V, such

18

determination shall not be subject to attack in proceedings

19

under this section.

20

(2)  The findings and determinations of the department under

21

this section shall be subject to appeal in the manner provided

22

in this act for appeals from determinations of compensation.

23

Section 4.  Section 401(b) and (f) of the act, amended July

24

9, 1976 (P.L.842, No.147) and December 9, 2002 (P.L.1330,

25

No.156), are amended to read:

26

Section 401.  Qualifications Required to Secure

27

Compensation.--Compensation shall be payable to any employe who

28

is or becomes unemployed, and who--

29

* * *

30

(b)  [Has registered for work at, and thereafter continued to

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1

report to an employment office in accordance with such

2

regulations as the secretary may prescribe, except that the

3

secretary may by regulation waive or alter either or both of the

4

requirements of this clause as to individuals attached to

5

regular jobs and as to such other types of cases or situations

6

with respect to which he finds that compliance with such

7

requirements would be oppressive or would be inconsistent with

8

the purposes of the act: Provided, however, That no such

9

regulation shall conflict with section four hundred and one (c)

10

of this act;] Is:

11

(1)  Actively engaged in a systematic and sustained effort to

12

obtain work. An individual shall be treated as actively engaged

13

in a systematic and sustained effort to obtain work only if the

14

individual provides tangible evidence to the secretary that the

15

individual has engaged in such effort in each week for which the

16

individual claimed unemployment compensation. The requirements

17

for active search shall be established by the department and

18

shall include, at a minimum, the following:

19

(i)  Registration by a claimant for employment search

20

services offered by the Pennsylvania CareerLink system within

21

fourteen days after initial application for benefits.

22

(ii)  Posting a resume on the system's database, unless the

23

claimant is seeking work for an occupation determined by the

24

secretary to be one for which resumes are not commonly used.

25

(iii)  Applying for positions similar to positions previously

26

held by the claimant that offer wages that are comparable to

27

wages for such positions in the local labor market and which are

28

within a forty-five minute commuting distance from the

29

individual's place of residence.

30

(2)  Available for suitable work. For purposes of this

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1

paragraph:

2

(i)  Except as provided in subparagraph (ii), "suitable work"

3

means work which is within the individual's capabilities, except

4

that:

5

(A)  If the individual furnishes evidence satisfactory to the

6

secretary that the individual has been notified by an

7

individual's base period or most recent separating employer of a

8

return to work date within forty-five days after the last date

9

worked, the individual may meet the requirement that he or she

10

be available for work by checking in with the employer for work

11

as prescribed by the employer during the forty-five-day period.

12

(B)  If the individual's prospects for obtaining work in the

13

individual's customary occupation within a reasonably short

14

period are good and the individual is obligated under the terms

15

of an agreement with an employer or group of employers to be

16

available for work with that employer or employers, the

17

secretary may permit the individual to meet availability

18

requirements for work by complying with the requirements

19

prescribed under such agreement and submitting supporting

20

documentation to the secretary.

21

(ii)  No individual otherwise qualified to receive

22

unemployment compensation shall lose the right to compensation

23

by reason of a refusal to accept new work if:

24

(A)  as a condition of being so employed the individual would

25

be required to join a company union, or to resign from or

26

refrain from joining any bona fide labor organization;

27

(B)  the position offered is vacant due directly to strike,

28

lockout or other labor dispute; or

29

(C)  the wages, hours or other conditions of the work offered

30

are substantially less favorable to the individual than those

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1

prevailing for similar work in the locality.

2

(iii)  If the secretary determines that an individual has

3

failed to be actively engaged in a systematic and sustained

4

effort to obtain work, failed to be available for suitable work

5

or refused an offer of suitable work under this subsection, the

6

secretary shall determine that the individual shall be

7

ineligible to receive unemployment compensation for any week

8

beginning with the week following the week in which the failure

9

occurred and until such individual has been employed during four

10

weeks which begin after such failure and the total remuneration

11

earned by the individual for being so employed is not less than

12

four times the individual's average weekly benefit amount. The

13

Pennsylvania CareerLink system shall provide documentation, as

14

the secretary deems appropriate, to the Pennsylvania

15

Unemployment Compensation Service Center system so the system

16

can conduct the necessary cross reference checks. The

17

requirements of this paragraph do not apply to any week in which

18

the claimant is in training approved under the Trade Act of 1974

19

(Public Law 93-618, 19 U.S.C. § 2101 et seq.) or any week in

20

which the claimant is required to participate in reemployment

21

services under section 402(j).

22

* * *

23

(f)  Has earned, subsequent to his separation from work under

24

circumstances which are disqualifying under the provisions of

25

subsections 402(b), 402(e), 402(e.1) and 402(h) of this act,

26

remuneration for services in an amount equal to or in excess of

27

[six (6)] ten (10) times his weekly benefit rate [irrespective

28

of whether or not such services were] in "employment" as defined

29

in this act[.] and earned wages for "employment" as defined in

30

this act, in ten (10) separate "weeks." The provisions of this

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1

subsection shall not apply to a suspension of work by an

2

individual pursuant to a leave of absence granted by his last

3

employer, provided such individual has made a reasonable effort

4

to return to work with such employer upon the expiration of his

5

leave of absence. 

6

* * *

7

Section 5.  Section 402(b) and (e) of the act, amended August

8

24, 1953 (P.L.1397, No.396) and October 22, 1981 (P.L.301,

9

No.106), are amended to read:

10

Section 402.  Ineligibility for Compensation.--An employe

11

shall be ineligible for compensation for any week--

12

* * *

13

(b)  In which his unemployment is due to voluntarily leaving

14

work without cause of a necessitous and compelling nature

15

attributable to his employment, irrespective of whether or not

16

such work is in "employment" as defined in this act: Provided,

17

That a voluntary leaving work because of a work-related 

18

disability if the employer is able to provide other suitable

19

work, shall be deemed not a cause of a necessitous and

20

compelling nature attributable to his employment: And provided

21

further, That no employe shall be deemed to be ineligible under

22

this subsection where as a condition of continuing in employment

23

such employe would be required to join or remain a member of a

24

company union or to resign from or refrain from joining any bona

25

fide labor organization, or to accept wages, hours or conditions

26

of employment not desired by a majority of the employes in the

27

establishment or the occupation, or would be denied the right of

28

collective bargaining under generally prevailing conditions, and

29

that in determining whether or not an employe has left his work

30

voluntarily without cause of a necessitous and compelling nature

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1

attributable to his employment, the department shall give

2

consideration to the same factors, insofar as they are

3

applicable, provided, with respect to the determination of

4

suitable work under section four (t): And provided further, That

5

the provisions of this subsection shall not apply in the event

6

of a stoppage of work which exists because of a labor dispute

7

within the meaning of subsection (d). Provided further, That no

8

otherwise eligible claimant shall be denied benefits for any

9

week in which his unemployment is due to exercising the option

10

of accepting a layoff, from an available position pursuant to a

11

labor-management contract agreement, or pursuant to an

12

established employer plan, program or policy: Provided further,

13

That a claimant shall not be disqualified for voluntarily

14

leaving work, which is not suitable employment to enter training

15

approved under section 236(a)(1) of the Trade Act of 1974. For

16

purposes of this subsection the term "suitable employment" means

17

with respect to a claimant, work of a substantially equal or

18

higher skill level than the claimant's past "adversely affected

19

employment" (as defined in section 247 of the Trade Act of

20

1974), and wages for such work at not less than eighty per

21

centum of the worker's "average weekly wage" (as defined in

22

section 247 of the Trade Act of 1974).

23

* * *

24

(e)  In which his unemployment is due to his discharge or

25

temporary suspension from work for [willful] misconduct

26

connected with his work, irrespective of whether or not such

27

work is "employment" as defined in this act[; and]. For purposes

28

of this subsection, the term "misconduct" shall include the

29

violation of any reasonable workplace rule or work-related

30

government regulation or law of which the employe was aware;

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1

failure to maintain a valid license or certificate that has been

2

issued by a Federal or Commonwealth agency or political

3

subdivision and which is a requirement of employment; the

4

deliberate damage to property of the employer or another employe

5

or the theft of an employer's or another employe's property;

6

reporting to work in possession of or under the influence of

7

drugs or alcohol; threatening a coworker or supervisor with

8

physical harm or threatening to harm the interests of the

9

employer; disregard of supervisor's reasonable directives or

10

orders and acts of negligence or an act of negligence which

11

indicates substantial disregard for employer's interests.

12

* * *

13

Section 6.  Section 404 introductory paragraph, (c) and (e)

14

(2), amended July 21, 1983 (P.L.68, No.30) and October 19, 1988

15

(P.L.818, No.109), are amended to read:

16

Section 404.  Rate and Amount of Compensation.--Compensation

17

shall be paid to each eligible employe in accordance with the

18

following provisions of this section except that compensation

19

payable with respect to weeks ending in benefit years which

20

begin prior to the first day of January [1989] 2012 shall be

21

paid on the basis of the provisions of this section in effect at

22

the beginning of such benefit years.

23

* * *

24

(c)  [Any] The total amount of benefits to which an otherwise

25

eligible employe who has base year wages in an amount equal to,

26

or in excess, of the amount of qualifying wages appearing in

27

Part C of the Table Specified for the Determination of Rate and

28

Amount of Benefits on the line on which in Part B there appears

29

his weekly benefit rate, as determined under subsection (a) of

30

this section, shall be entitled during his benefit year to the

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1

amount appearing in Part D on said line multiplied by the number

2

of qualifying credit weeks during his base year, up to a maximum

3

of twenty-six (26): Provided he had eighteen (18) or more

4

"credit weeks" during his base year [or Part E provided he had

5

sixteen (16) or seventeen (17) "credit weeks" during his base

6

year]. Notwithstanding any other provision of this act, any

7

employe with less than [sixteen (16)] eighteen (18) "credit

8

weeks" during the employe's base year shall be ineligible to

9

receive any amount of compensation.

10

* * *

11

(e)  * * *

12

(2)  (i)  The Table Specified for the Determination of Rate

13

and Amount of Benefits shall be extended or contracted annually,

14

automatically by regulations promulgated by the secretary in

15

accordance with the following procedure: for calendar year one

16

thousand nine hundred seventy-two and for all subsequent

17

calendar years, to a point where the maximum weekly benefit rate

18

equals sixty-six and two-thirds per centum of the average weekly

19

wage for the twelve-month period ending June 30 preceding each

20

calendar year. If the maximum weekly benefit rate is not a

21

multiple of one dollar ($1), it shall be [increased by one

22

dollar ($1) and then] rounded to the next lower multiple of one

23

dollar ($1): Provided, however, That effective with benefit

24

years beginning the first Sunday at least thirty days after the

25

effective date of this amendatory act, the per centum stated in

26

this paragraph for establishing the maximum weekly benefit rate

27

shall be sixty-two and two-thirds per centum for the remainder

28

of calendar year one thousand nine hundred seventy-four, sixty-

29

four and two-thirds per centum for the calendar year one

30

thousand nine hundred seventy-five, and sixty-six and two-thirds

- 18 -

 


1

per centum for the calendar year one thousand nine hundred

2

seventy-six and for all subsequent calendar years.

3

The Table Specified for the Determination of Rate and Amount

4

of Benefits as so extended or contracted shall be effective only

5

for those claimants whose benefit years begin on or after the

6

first day of January of such calendar year.

7

(ii)  For the purpose of determining the maximum weekly

8

benefit rate, the Pennsylvania average weekly wage in covered

9

employment shall be computed on the basis of the total wages

10

reported (irrespective of the limit on the amount of wages

11

subject to contributions) for the twelve-month period ending

12

June 30 and this amount shall be divided by the average monthly

13

number of covered workers (determined by dividing the total

14

covered employment reported for the same fiscal year by twelve)

15

to determine the average annual wage. The average annual wage

16

thus obtained shall be divided by fifty-two and the average

17

weekly wage thus determined rounded to the nearest cent.

18

* * *

19

Section 7.  The act is amended by adding a section to read:

20

Section 404.2.  Effect of Severance Pay on Benefits.--(a)  An

21

employe who has been determined to be eligible for benefits and

22

who receives severance pay upon termination from his employer

23

shall have the benefit year adjusted to start of the date of

24

expiration of the period when fifty per centum (50%) of

25

severance pay ends. Severance pay shall be attributed to the

26

day, days, week or weeks immediately following the employe's

27

termination.

28

(b)  The number of days or weeks to which severance pay is

29

attributed is determined by dividing the total amount of

30

severance pay by the regular full-time daily or weekly wage of

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1

the claimant.

2

(c)  The amount of severance pay attributed to each day or

3

week equals the regular full-time daily or weekly wage of the

4

claimant.

5

(d)  When the attribution of severance pay is made on the

6

basis of the number of days, the pay shall be attributed to the

7

customary working days in the calendar week.

8

(e)  An employe shall not be subject to the requirements of

9

section 401(b) and (d)(1) during the period the benefit year

10

starts.

11

(f)  For the purposes of this section, the term "severance

12

pay" shall mean one or more payments made by an employer to an

13

employe on account of separation from the service of the

14

employer, regardless of whether the employer is legally bound by

15

contract, statute or otherwise to make such payments. The term

16

does not include payments for pension, retirement or accrued

17

leave or payments of supplemental unemployment benefits.

18

Section 8.  Section 505 of the act, amended April 23, 1942

19

(Sp. Sess., P.L.60, No.23), is amended to read:

20

Section 505.  Rules of Procedure.--The manner in which

21

appeals shall be taken, the reports thereon required from the

22

department, the claimant and employers, and the conduct of

23

hearings and appeals, shall be in accordance with rules of

24

procedure prescribed by the board whether or not such rules

25

conform to common law or statutory rules of evidence and other

26

technical rules of procedure. Rules established by the board

27

shall permit either party to a hearing to testify via telephone,

28

without regard to distance of hearing location from either

29

party.

30

When the same or substantially similar evidence is relevant

- 20 -

 


1

and material to the matter in issue in applications and claims

2

filed by more than one individual or in multiple applications

3

and claims filed by a single individual the same time and place

4

for considering each such application and claim may be fixed,

5

hearings thereon jointly conducted, a single record of the

6

proceedings made and evidence introduced with respect to any

7

application or claim considered as introduced with respect to

8

all of such applications or claims: Provided, That in the

9

judgment of the board or referee having jurisdiction of the

10

proceeding such consideration will not be prejudicial to any

11

party.

12

Section 9.  This act shall apply as follows:

13

(1)  The amendment of section 401(b) of the act shall

14

apply to initial claims filed on or after July 1, 2011.

15

(2)  The amendment of sections 4(g.1) and 401(f) of the

16

act shall apply to initial claims filed on or after January

17

1, 2012.

18

(3)  The amendment of sections 302 and 402(b) and (e) of

19

the act are applicable to initial claims filed on or after

20

January 1, 2012.

21

(4)  The addition of section 302.1 of the act shall apply

22

to initial claims filed on or after January 1, 2012.

23

(5)  The addition of section 404.2 of the act shall apply

24

to claims filed on or after January 1, 2013.

25

Section 10.  This act shall take effect as follows:

26

(1)  This section shall take effect immediately.

27

(2)  The amendment of section 404 introductory paragraph

28

of the act shall take effect January 1, 2013.

29

(3)  The remainder of this act shall take effect in 60

30

days.

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