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House of Representatives
Session of 2013 - 2014 Regular Session

MEMORANDUM

Posted:	November 19, 2013 07:48 PM
From:	Representative Marc J. Gergely
To:	All House members
Subject:	Unemployment Compensation “Fix” – Eligibility Based on High Quarter Earnings (the 49.5% change)

In the very near future, I will be introducing legislation to provide a solution to an unintended consequence of Act 60 of 2012, the Unemployment Compensation (UC) solvency bill. Specifically, my bill will ensure that workers – and particularly seasonal construction workers – will not be determined ineligible for benefits because they work overtime or earn too much in their “high quarter.” Please know that Governor Corbett’s office and Department of Labor and Industry are supportive of this proposal. Like many of you, my office has been working closely with construction workers that have been affected by Act 60. Unfortunately, while many of these workers have earned the required number of credit weeks and have earned required wages, they find that they have placed themselves out of qualification for UC because of overtime earnings during their busy season. As you may know, Act 60 requires workers to earn at least 49.5% of their total base year wages outside of their high quarter. While this change sought to reduce eligibility for workers that are not attached to the workforce, this change has in fact had the opposite effect – it penalizes workers who work too much. Accordingly, my legislation will correct this problem for workers who would have otherwise qualified for UC benefits (without excessive earnings in their high quarter) by eliminating the 49.5% requirement if they earn the maximum base year and high quarter wages required to secure benefits. I hope you will join me in sponsoring this important bill.

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