PRINTER'S NO. 1311
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1035
Session of
2015
INTRODUCED BY MURT, R. BROWN, FEE, GRELL, A. HARRIS, JAMES,
LAWRENCE, MILLARD, SAYLOR AND TRUITT, APRIL 20, 2015
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, APRIL 20, 2015
AN ACT
Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
P.L.2897, No.1), entitled "An act establishing a system of
unemployment compensation to be administered by the
Department of Labor and Industry and its existing and newly
created agencies with personnel (with certain exceptions)
selected on a civil service basis; requiring employers to
keep records and make reports, and certain employers to pay
contributions based on payrolls to provide moneys for the
payment of compensation to certain unemployed persons;
providing procedure and administrative details for the
determination, payment and collection of such contributions
and the payment of such compensation; providing for
cooperation with the Federal Government and its agencies;
creating certain special funds in the custody of the State
Treasurer; and prescribing penalties," further providing for
rate and amount of compensation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 404(d)(1.1) of the act of December 5,
1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the
Unemployment Compensation Law, amended June 17, 2011 (P.L.16,
No.6), is amended to read:
Section 404. Rate and Amount of Compensation.--* * *
(d) * * *
(1.1) For purposes of clause (1)(iii), all of the following
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apply:
(i) "Severance pay" means one or more payments made by an
employer to an employe on account of separation from the service
of the employer, regardless of whether the employer is legally
bound by contract, statute or otherwise to make such payments.
The term includes an amount received as consideration for or in
settlement or release of claims arising from the early
termination of an employment contract. The term does not include
payments for pension, retirement or accrued leave or payments of
supplemental unemployment benefits.
(ii) The amount of severance pay attributed pursuant to
subclause (iii) shall be:
(A) For an amount received as consideration for or in
settlement or release of claims arising from the early
termination of an employment contract, one hundred per centum
(100%) of the amount.
(B) For other types of severance pay, an amount not less
than zero (0) determined by subtracting forty per centum (40%)
of the average annual wage as calculated under subsection (e) as
of June 30 immediately preceding the calendar year in which the
claimant's benefit year begins from the total amount of
severance pay paid or payable to the claimant by the employer.
(iii) Severance pay is attributed as follows:
(A) Severance pay is attributed to the day, days, week or
weeks immediately following the employe's separation.
(B) The number of days or weeks to which severance pay is
attributed is determined by dividing the total amount of
severance pay by the regular full-time daily or weekly wage of
the claimant.
(C) The amount of severance pay attributed to each day or
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week equals the regular full-time daily or weekly wage of the
claimant.
(D) When the attribution of severance pay is made on the
basis of the number of days, the pay shall be attributed to the
customary working days in the calendar week.
* * *
Section 2. This act applies to initial claims filed on or
after July 1, 2013.
Section 3. This act shall take effect in 60 days.
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