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10/22/2021 08:09 AM
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House of Representatives
Session of 2021 - 2022 Regular Session


Posted: July 22, 2021 03:56 PM
From: Representative Mike Zabel and Rep. Morgan Cephas
To: All House members
Subject: Mandatory Severance Pay for Mass Layoffs
Since January 2020, the Pennsylvania Department of Labor and Industry received roughly 300 Worker Adjustment and Retraining Notification (WARN) Act notifications that resulted in tens of thousands of permanent layoffs in the state. While corporate profits and CEO perks are higher than ever, most workers’ pay has stagnated or has gone down in recent years. By securing severance pay for our workers in Pennsylvania, we can ensure that those who have worked hard are treated fairly.
This proposal would ensure that workers who lose their job in a mass layoff receive a fair deal and are not left behind. This bill would require that workers are provided with severance pay, health insurance coverage, and other necessary protections. These small benefits will help them start the next chapter in their lives. We need to put an end to the days where corporate executives collect large bonuses, while workers and their families suffer. 
In addition, our legislation would require companies with more than 50 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. In 2020, New Jersey was the first state to pass such legislation.
We urge you to co-sponsor this imperative legislation that guarantees a fair deal for workers as they experience one of the most difficult periods of their lives. Together, we can do better for workers and our economy.