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House Co-Sponsorship Memoranda
House of Representatives
Session of 2019 - 2020
Regular Session
MEMORANDUM
| Posted: | February 11, 2020 10:19 AM |
|---|---|
| From: | Representative Mike Zabel and Rep. Morgan Cephas |
| To: | All House members |
| Subject: | Mandatory Severance Pay |
| In the near future, we will introduce legislation to mandate severance pay for employees of certain companies after mass layoffs. In 2019, several major Philadelphia-area employers were suddenly shuttered, leaving thousands of workers unemployed and scrambling for new work. Philadelphia Energy Solutions, Hahnemann University Hospital and Johnson & Johnson to name just a few. All told, it is estimated that more than 11,000 employees statewide were laid off in 2019. At Philadelphia Energy Solutions, eight executives received more than $4.6 million in retention bonuses. At Hahnemann Hospital, lawyers and consultants earned millions in fees, with Hahnemann’s owners paying some firms nearly $800 per hour. The common thread between these employers: while executives and consultants were lining their pockets, employees were left out to dry and let go with little or no severance pay, health insurance coverage, and other protections. Our legislation would require companies with more than 100 full-time employees to pay one week’s pay for each year of service during a mass layoff or plant closing that impacts more than 50 employees. Last month, New Jersey became the first state to pass such legislation. We must do better for the hard-working citizens of Pennsylvania. This legislation will allow us to become a nationwide leader in worker’s rights. We encourage you to join us in sponsoring this very important bill. |
Introduced as HB2642