Trial Engrossment of Amendment A05792 to Senate Bill 1083 P.N. 1940, Regular Session 2021-2022

HOUSE AMENDED

A05792

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1083

Session of

2022

INTRODUCED BY BAKER, PHILLIPS-HILL, BARTOLOTTA, FONTANA,

GORDNER, COLLETT, SANTARSIERO, SCHWANK, COSTA, J. WARD,

VOGEL, KANE, ROBINSON, BROOKS AND MUTH, FEBRUARY 17, 2022

AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF

REPRESENTATIVES, AS AMENDED, SEPTEMBER 21, 2022

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," IN PRELIMINARY

PROVISIONS, FURTHER PROVIDING FOR DEFINITIONS; IN

CONTRIBUTIONS BY EMPLOYERS AND EMPLOYEES, FURTHER PROVIDING

FOR CONTRIBUTIONS BY EMPLOYERS AND EMPLOYEES, SUCCESSORS-IN-

INTEREST AND APPEALS; in compensation, further providing for

ineligibility for compensation and for rate and amount of

compensation; and, in shared-work program, further providing

for shared-work plan requirements, for effective period of

shared-work plan and for participating employer

responsibilities.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Sections 402(b), 1303(b), 1305(b) and 1307(b) of

the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1),

known as the Unemployment Compensation Law, are amended to read:

SECTION 1. SECTION 4(L)(4)(10)(A) OF THE ACT OF DECEMBER 5,

1936 (2ND SP.SESS., 1937 P.L.2897, NO.1), KNOWN AS THE

UNEMPLOYMENT COMPENSATION LAW, IS AMENDED TO READ:

SECTION 4. DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES, AS

USED IN THIS ACT, SHALL HAVE THE FOLLOWING MEANINGS, UNLESS THE

CONTEXT CLEARLY REQUIRES OTHERWISE.

* * *

(L) * * *

(4) THE WORD "EMPLOYMENT" SHALL NOT INCLUDE--

* * *

(10) (A) SERVICE PERFORMED IN ANY CALENDAR QUARTER IN THE

EMPLOY OF AN ORGANIZATION EXEMPT FROM INCOME TAX UNDER SECTION

501(A) OF THE FEDERAL INTERNAL REVENUE CODE OF 1954, AS AMENDED,

(OTHER THAN AN ORGANIZATION DESCRIBED IN SECTION 401(A) OF SAID

CODE) OR UNDER SECTION 521 OF SAID CODE, IF THE REMUNERATION FOR

SUCH SERVICE IS LESS THAN FIFTY DOLLARS; OR

* * *

SECTION 2. SECTION 301 OF THE ACT IS AMENDED BY ADDING A

SUBSECTION TO READ:

SECTION 301. CONTRIBUTIONS BY EMPLOYERS AND EMPLOYES;

SUCCESSORS-IN-INTEREST; APPEALS.--

* * *

(I.1) FOR PURPOSES OF DETERMINING WHETHER OR NOT AN EMPLOYER

HAS PAID CONTRIBUTIONS IN ORDER TO BE ELIGIBLE FOR CONSIDERATION

FOR AN ADJUSTED RATE, AN EMPLOYER WHO HAS CEASED PAYING WAGES

DUE TO TEMPORARY CESSATION OF OPERATIONS AS A RESULT OF THE

DECLARATION BY THE GOVERNOR OF DISASTER EMERGENCY UNDER 35

PA.C.S. § 7301(C) (RELATING TO GENERAL AUTHORITY OF GOVERNOR)

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REGARDING COVID-19, AT ANY TIME AFTER THE SIXTH DAY OF MARCH,

TWO THOUSAND AND TWENTY, AND PRIOR TO THE FIRST DAY OF JULY, TWO

THOUSAND AND TWENTY-ONE, SHALL BE DEEMED TO HAVE PAID

CONTRIBUTIONS UNDER THIS ACT DURING FISCAL YEAR TWO THOUSAND AND

TWENTY-ONE: PROVIDED, THAT THE EMPLOYER HAS ACTUALLY PAID

CONTRIBUTIONS UNDER THIS ACT FOR ONE OR MORE QUARTERS IN EITHER

THE FISCAL YEAR ENDING ON THE THIRTIETH DAY OF JUNE, TWO

THOUSAND AND TWENTY-ONE, OR IN THE IMMEDIATELY PRECEDING FISCAL

YEAR ENDING ON THE THIRTIETH DAY OF JUNE, TWO THOUSAND AND

TWENTY.

* * *

SECTION 3. SECTIONS 402(B), 404(d)(1) and (1.1), 1303(B),

1305(B) AND 1307(B) OF THE ACT ARE AMENDED TO READ:

Section 402. Ineligibility for Compensation.--An employe

shall be ineligible for compensation for any week--

* * *

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

work without cause of a necessitous and compelling nature,

irrespective of whether or not such work is in "employment" as

defined in this act: Provided, That a voluntary leaving work

because of a disability if the employer is able to provide other

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

compelling nature: And provided further, That no employe shall

be deemed to be ineligible under this subsection where as a

condition of continuing in employment such employe would be

required to join or remain a member of a company union or to

resign from or refrain from joining any bona fide labor

organization, or to accept wages, hours or conditions of

employment not desired by a majority of the employes in the

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

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collective bargaining under generally prevailing conditions, and

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

voluntarily without cause of a necessitous and compelling

nature, the department shall give consideration to the same

factors, insofar as they are applicable, provided, with respect

to the determination of suitable work under section four (t):

And provided further, That the provisions of this subsection

shall not apply in the event of a stoppage of work which exists

because of a labor dispute within the meaning of subsection (d).

Provided further, That no otherwise eligible claimant shall be

denied benefits for any week in which his unemployment is due to

exercising the option of accepting a layoff, from an available

position pursuant to a labor-management contract agreement, or

pursuant to an established employer plan, program or policy:

Provided further, That a claimant shall not be disqualified for

voluntarily leaving work, which is not suitable employment to

enter training approved under section 236(a)(1) of the Trade Act

of 1974[.]: Provided further, That a claimant shall not be

disqualified for voluntarily leaving work if the claimant left

such work to accompany a spouse who is on active duty with the

United States Armed Forces and is required to relocate due to

permanent change of station orders, activation orders or unit

deployment orders and such relocation would make it impractical

or unreasonably difficult, as determined by the department, for

the claimant to continue employment with the claimant's

employer. For purposes of this subsection the term "suitable

employment" means with respect to a claimant, work of a

substantially equal or higher skill level than the claimant's

past "adversely affected employment" (as defined in section 247

of the Trade Act of 1974), and wages for such work at not less

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than eighty per centum of the worker's "average weekly wage" (as

defined in section 247 of the Trade Act of 1974).

* * *

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

(d) (1) Notwithstanding any other provisions of this

section each eligible employe who is unemployed with respect to

any week ending subsequent to July 1, 1980 shall be paid, with

respect to such week, compensation in an amount equal to his

weekly benefit rate less the total of (i) the remuneration, if

any, paid or payable to him with respect to such week for

services performed which is in excess of his partial benefit

credit[,] and (ii) vacation pay, if any, which is in excess of

his partial benefit credit, except when paid to an employe who

is permanently or indefinitely separated from his employment.

[and (iii) the amount of severance pay that is attributed to the

week.

(1.1) For purposes of clause (1)(iii), all of the following

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 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 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

A05792 - 5 -

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.

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 1303. Shared-work plan requirements.

* * *

(b) Reduction percentage.--The reduction percentage under an

approved shared-work plan shall meet all of the following

requirements:

(1) The reduction percentage shall be no less than 20%

and no more than 40%.

(2) The reduction percentage shall be the same for all

participating employees.

[(3) The reduction percentage shall not change during

the period of the shared-work plan unless the plan is

modified in accordance with section 1308.]

Section 1305. Effective period of shared-work plan.

* * *

(b) Start date.--The effective period of [the] an approved

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shared-work plan shall begin with the first calendar week

following the date on which the [department approves the plan.]

employer submits the plan to the department or on the first

calendar week following the date the employer provided in the

plan, whichever is later.

Section 1307. Participating employer responsibilities.

* * *

[(b) Benefit charges.--Notwithstanding any other provision

of this act, compensation paid to participating employees for

weeks within the effective period of an approved shared-work

plan will be charged to the participating employer.]

Section 2. This act shall take effect in 60 days.

SECTION 4. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.

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