THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PERRY, AUMENT, BAKER, BLOOM, BOYD, CLYMER, COX, CREIGHTON, CUTLER, EVANKOVICH, EVERETT, FLECK, GABLER, GILLEN, GRELL, GROVE, HESS, HICKERNELL, KAUFFMAN, KNOWLES, METCALFE, MILLER, MOUL, PICKETT, ROCK, STERN, QUINN, DENLINGER, FARRY AND BEAR, MARCH 3, 2011

AS REPORTED FROM COMMITTEE ON LABOR AND INDUSTRY, HOUSE OF REPRESENTATIVES, AS AMENDED, MAY 10, 2011   

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

definitions, for relief from charges from certain employers 

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and for establishment and maintenance of employer's reserve

accounts; providing for relief from charges; further

providing for qualifications required to secure compensation,

for ineligibility for compensation and for rate and amount of

compensation; providing for effect of severance pay on

benefits wages; further providing for extended benefits

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program definitions and for rules of procedure; and providing

for applicability.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 4(g.1) of the act of December 5, 1936

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(2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment

Compensation Law, added July 10, 1980 (P.L.521, No.108), is

amended to read:

Section 1.  Section 4(g.1) and (w)(2) of the act of December

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5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the

Unemployment Compensation Law, amended or added September 27,

1971 (P.L.460, No.108) and July 10, 1980 (P.L.521, No.108), are

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.

* * *

(g.1)  "Credit week" means any calendar week in an

individual's base year with respect to which he was paid in

employment as defined in this act, remuneration of not less than

[fifty dollars ($50)] sixteen (16) times the minimum hourly wage

required by the act of January 17, 1968 (P.L.11, No.5), known as

The Minimum Wage Act of 1968. Only one credit week can be

established with respect to any one calendar week.

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(w)  * * *

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(2)  An application for benefits filed after the termination

of a preceding benefit year by an individual shall not be

considered a Valid Application for Benefits within the meaning

of this subsection, unless such individual has, subsequent to

the beginning of such preceding benefit year and prior to the

filing of such application, worked and earned wages[, whether or

not such work is] in "employment" as defined in this act in an

amount equal to or in excess of [six (6)] ten (10) times his

weekly benefit rate in effect during such preceding benefit

year. 

* * *

Section 1.1.  Section 213(a) of the act, added December 9,

2002 (P.L.1330, No.156), is amended to read:

Section 213.  Relief from Charges for Certain Employers.--(a)

An employer that makes payments in lieu of contributions

pursuant to Article X, XI or XII shall be relieved of charges in

accordance with section [302(a)] 302.1 and regulations of the

department, for compensation paid on applications for benefits

effective during a calendar year, if the employer satisfies the

following requirements:

(1)  The employer pays a nonrefundable solvency fee under

subsection (b) for the calendar year within thirty (30) days

after notice of the fee is sent to the employer's last known

address. The department may for good cause extend the period

within which the fee must be paid.

(2)  All reports required by this act and regulations of the

department for calendar quarters through the second calendar

quarter of the preceding calendar year are filed.

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Section 2.  Section 302 of the act, amended or added March

24, 1964 (Sp.Sess., P.L.53, No.1), July 6, 1977 (P.L.41, No.22),

July 21, 1983 (P.L.68, No.30), December 19, 1996 (P.L.1476,

No.189) and December 9, 2002 (P.L.1330, No.156), is amended to

read:

Section 302.  Establishment and Maintenance of Employer's

Reserve Accounts.--The department shall establish and maintain

for each employer a separate employer's reserve account in the

following manner:

(a)  [(1)  Such account shall be credited with all

contributions paid by such employer for periods subsequent to

June thirtieth, one thousand nine hundred forty-eight. Such

account shall be charged with an amount determined by

multiplying the wages of compensated employes of such employer

for the twelve month period ended June thirtieth, one thousand

nine hundred forty-nine, by the state experience heretofore used

in determining rates of contributions for the year one thousand

nine hundred forty-nine. Subsequent to January 1, 1984, such] An

employer's account shall be charged with all compensation,

including dependents' allowances, paid to each individual who

received from such employer wage credits constituting the base

of such compensation, in the proportion that such wage credits

with such employer bears to the total wage credits received by

such individual from all employers[: Provided, That if the

department finds that such individual was separated from his

most recent work for such employer due to being discharged for

[willful] misconduct connected with such work, or due to his

leaving such work without good cause attributable to his

employment, or due to his being separated from such work under

conditions which would result in disqualification for benefits

under the provisions of section 3 or section 402(e.1),

thereafter no compensation paid to such individual with respect

to any week of unemployment occurring subsequent to such

separation, which is based upon wages paid by such employer with

respect to employment prior to such separation, shall be charged

to such employer's account under the provisions of this

subsection (a); provided, such employer has filed a notice with

the department in accordance with its rules and regulations and

within the time limits prescribed therein; and provided if the

department finds that such individual's unemployment is directly

caused by a major natural disaster declared by the President

pursuant to section 102(1) of the Disaster Relief Act of 1970

(P.L.91-606) and such individual would have been eligible for

disaster unemployment assistance as provided in section 240 of

that act with respect to such unemployment but for the receipt

of unemployment compensation, no compensation paid to such

individual with respect to any week of unemployment occurring

due to such natural disaster, to a maximum of the eight weeks

immediately following the President's declaration of emergency,

shall be charged to the employer's account under the provisions

of this subsection.

(2)  Notwithstanding the provisions of paragraph (1) of this

subsection, if the department finds that an individual

subsequent to separation from his work is engaged in part-time

work for a base year employer, other than a base year employer

from whom he has separated, compensation paid to such individual

with respect to any week of unemployment occurring subsequent to

such separation and while such part-time work continues without

material change, shall not be charged to the account of such

part-time employer; provided, such part-time employer has filed

a notice with the department in accordance with its rules and

regulations and within the time limits prescribed therein.

(2.1)  Notwithstanding the provisions of paragraph (1) of

this subsection, if the department finds that an individual was

separated from his most recent work for such employer due to a

cessation of business of eighteen months or less caused by a

disaster, compensation paid to such individual with respect to

any week of unemployment occurring subsequent to such separation

shall not be charged to the account of such employer; provided,

such employer has filed a notice with the department in

accordance with its rules and regulations and within the time

limits prescribed therein.

(3)  The findings and determinations of the department under

this subsection (a) shall be subject to appeal in the manner

provided in this act for appeals from determinations of

compensation: Provided, That where the individual's eligibility

for compensation has been finally determined under the

provisions of Article V of this act, such determination shall

not be subject to attack in proceedings under this section.

(4)  The reserve account of any employer who pays

contributions under this section shall not be charged with

respect to benefits paid to any individual whose base period

wages include wages for previously uncovered services as defined

in section 401(g) to the extent that the unemployment insurance

fund is reimbursed for such benefits pursuant to section 121 of

Public Law 94-566].

(b)  Any employer, at any time, may voluntarily pay into the

Unemployment Compensation Fund an amount in excess of the

contributions required to be paid under the provisions of this

act, and such amount shall be forthwith credited to his reserve

account. His rate of contribution shall be computed or

recomputed, as the case may be, with such amount included in the

calculation. To affect such employer's rate of contribution for

any year, such amount shall be paid not later than thirty days

following the mailing of notice of his rate of contribution for

such year: Provided, That for good cause, such time may be

extended by the department: And provided further, That such

amount, when paid as aforesaid, shall not be refunded or used as

a credit in the payment of contributions in whole or in part.

In no event shall any such amount be included in the computation

or recomputation for any year unless it is paid within one

hundred twenty days after the beginning of such year.

(c)  (1)  For the purpose of determining any employer's rate

of contribution for any year, the phrase "balance in an

employer's reserve account" as used in sections 301, 301.1 and

301.2 of this act shall mean the amount ascertained as of the

computation date by subtracting the amounts charged to his

reserve account from the amounts credited thereto including

voluntary contributions. If, as of the computation date, the

amounts charged to his reserve account exceed the amounts

credited by an amount equivalent to more than twenty per centum

(20%) of his average annual payroll, the employer may elect,

subject to the provisions of section 301.1(f) of this act to

have his reserve account balance adjusted to a negative balance

equal to twenty per centum (20%) of his average annual payroll.

This subsection as amended shall apply to elections made after

December 31, 1986.

(2)  Notwithstanding the provisions of section 301.1(f) and

paragraph (1) of this subsection, for elections made on or after

January 1, 1984 and before May 1, 1986, if the amounts charged

to the employer's reserve account exceed the amounts credited by

an amount equivalent to more than ten per centum (10%) of his

average annual payroll, the department, after determining his

Reserve Ratio Factor shall, upon the election of the employer,

adjust his reserve account balance to a negative balance equal

to ten per centum (10%) of his average annual payroll. With

respect to future adjustments of negative balance accounts, the

secretary shall, upon the election of the employer, make

adjustments as follows:

(i)  In relation to adjustments made for the second time

after January 1, 1984 and before May 1, 1986, if the amounts

charged to his reserve account exceed the amounts credited by an

amount equivalent to more than fifteen per centum (15%) of his

average annual payroll, the department shall, upon the election

of the employer, adjust the reserve account balance to a

negative balance equal to fifteen per centum (15%) of his

average annual payroll.

(ii)  In relation to adjustments made for the third time

after January 1, 1984 and before May 1, 1986, if the amounts

charged to his reserve account exceed the amounts credited by an

amount equivalent to more than twenty per centum (20%) of his

average annual payroll, the department shall, upon the election

of the employer, adjust his reserve account balance to a

negative balance equal to twenty per centum (20%) of his average

annual payroll.

(d)  The department shall terminate the reserve account of

any employer who has not paid contributions for a period of four

consecutive twelve month periods, ending June thirtieth in any

year.

(e)  Nothing contained in this act shall be construed to

grant to any employer any claim or right of withdrawal with

respect to any amount allocated to him from, or paid by him

into, the Unemployment Compensation Fund, except as provided in

section three hundred eleven hereof.

Section 3.  The act is amended by adding a section to read:

Section 302.1.  Relief from Charges.--Notwithstanding any

other provisions of this act assigning charges for compensation

paid to employes, the department shall relieve an employer of

charges for compensation in accordance with this section and

section 213 of this act.

(a)  Circumstances allowing relief:

(1)  If an individual was separated from his most recent work

for an employer due to being discharged for misconduct connected

with that work, or due to his leaving that work without good

cause attributable to his employment, or due to his being

separated from such work under conditions which would result in

disqualification for benefits under the provisions of section 3

or section 402(e.1), the employer shall be relieved of charges

for compensation paid to the individual with respect to any week

of unemployment occurring subsequent to such separation. Relief

from charges under this paragraph terminates if the employe

returns to work for the employer.

(2)  If an individual's unemployment is directly caused by a

major natural disaster declared by the President of the United

States pursuant to section 102(1) of the Disaster Relief Act of

1970 (Public Law 91-606, 42 U.S.C. § 4401 et seq.) and the

individual would have been eligible for disaster unemployment

assistance as provided in section 240 of the Disaster Relief Act

of 1970 with respect to that unemployment but for the receipt of

unemployment compensation, an employer shall be relieved of

charges for compensation paid to such individual with respect to

any week of unemployment occurring due to the natural disaster,

to a maximum of the eight weeks immediately following the

declaration of emergency by the President of the United States.

(3)  If an individual subsequent to separation from his work

is engaged in part-time work for a base year employer, other

than a base year employer from whom he has separated, the part-

time employer shall be relieved of charges for compensation paid

to the individual with respect to any week of unemployment

occurring subsequent to the separation and while such part-time

work continues without material change.

(4)  If the department finds that an individual was separated

from his most recent work for an employer due to a cessation of

business of eighteen months or less caused by a disaster, the

employer may be relieved of charges for compensation paid to

such individual with respect to any week of unemployment

occurring subsequent to that separation. Relief from charges

under this paragraph terminates if the employe returns to work

for the employer.

(b)  Requests for relief from charges:

(1)  Except as provided in subsection (c), in order to be

granted relief from charges for compensation an employer must

file a request with the department in the manner provided, and

containing all information required, by the department's

regulations.

(2)  If an employer is requesting relief from charges on the

basis of a separation that occurs on or before the date the

claimant files an application for benefits or on the basis of

continuing part-time work, the following shall apply:

(i)  If the request is filed within thirty (30) days after

the date of the earliest notice issued by the department under

section 501(a) indicating that the claimant is eligible under

section 401(a) and relief is granted, relief will begin with the

earliest week for which the claimant is eligible for benefits

pursuant to the claimant's application for benefits.

(ii)  If the request is not filed within the time period

provided in subparagraph (i), relief, if granted by the

department, will begin with the earliest week ending fifteen

(15) or more days subsequent to the date the request is filed.

(3)  If an employer is requesting relief from charges on the

basis of a separation that occurs after the claimant files an

application for benefits, the following shall apply:

(i)  If the request is filed within thirty (30) days after

the date of the earliest notice issued by the department

indicating that the claimant is claiming benefits subsequent to

the separation and relief is granted, relief will begin with the

earliest week for which the claimant is eligible for benefits

following the last day worked.

(ii)  If the request is not filed within the time period

provided in subparagraph (i), relief, if granted by the

department, will begin with the earliest week ending fifteen

(15) or more days subsequent to the date the request is filed.

(c)  Relief from charges without a request:

(1)  If a claimant is determined ineligible for benefits

under section 3 or section 402(b), (e) or (e.1) pursuant to a

notice of determination that has become final, the department

will grant relief from charges in accordance with subsection (a)

(1) to the employer from whom the claimant was separated,

beginning with the earliest week for which the claimant is

eligible for benefits following the week or weeks governed by

the notice of determination.

(2)  If a claimant is determined eligible for benefits under

section 402(b) pursuant to a notice of determination that has

become final, the department will grant or deny relief from

charges in accordance with subsection (a)(1) to the employer

from whom the claimant was separated, beginning with the

earliest week governed by the notice of determination, in

accordance with the following:

(i)  The department will grant relief from charges if the

claimant left work for the employer without good cause

attributable to the claimant's employment.

(ii)  The department will deny relief from charges if the

claimant left work for the employer with good cause attributable

to the claimant's employment.

(3)  Relief from charges granted to an employer remains in

effect for the purpose of benefits paid to the claimant pursuant

to a subsequent application for benefits if the relief has not

terminated in accordance with the provisions of this section.

(d)  Employer information:

(1)  An employer that is granted relief from charges on the

basis of a claimant's separation from employment shall notify

the department within fifteen (15) days if the claimant returns

to work for the employer. The employer shall include with the

notification the claimant's name and Social Security number, the

employer's name and account number and the date when

reemployment commenced.

(2)  An employer that is granted relief from charges on the

basis of continuing part-time work shall notify the department

within fifteen (15) days if the employment situation of the

claimant changes. The employer shall include with the

notification the claimant's name and Social Security number and

the employer's name and account number.

(e)  General provisions:

(1)  Where the individual's eligibility for compensation has

been finally determined under the provisions of Article V, such

determination shall not be subject to attack in proceedings

under this section.

(2)  The findings and determinations of the department under

this section shall be subject to appeal in the manner provided

in this act for appeals from determinations of compensation.

Section 4.  Section 401(b) and (f) of the act, amended July

9, 1976 (P.L.842, No.147) and December 9, 2002 (P.L.1330,

No.156), are amended to read:

Section 401.  Qualifications Required to Secure

Compensation.--Compensation shall be payable to any employe who

is or becomes unemployed, and who--

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(b)  [Has registered for work at, and thereafter continued to

report to an employment office in accordance with such

regulations as the secretary may prescribe, except that the

secretary may by regulation waive or alter either or both of the

requirements of this clause as to individuals attached to

regular jobs and as to such other types of cases or situations

with respect to which he finds that compliance with such

requirements would be oppressive or would be inconsistent with

the purposes of the act: Provided, however, That no such

regulation shall conflict with section four hundred and one (c)

of this act;] (1)  Is making an active search for suitable

employment. The requirements for "active search" shall be

established by the department, and shall include, at a minimum,

all the following:

(i)  Registration by a claimant for employment search

services offered by the Pennsylvania CareerLink system within

thirty (30) days after initial application for benefits.

(ii)  Posting a resume on the system's data base, unless the

claimant is seeking work in an employment sector in which

resumes are not commonly used.

(iii)  Applying for positions that offer employment and wages

similar to those the claimant had prior to his unemployment and

which are within a forty-five (45) minute commuting distance.

(2)  The PA CareerLink system shall provide documentation, as

the secretary deems appropriate, to the Pennsylvania

Unemployment Compensation Service Center system so the system

can conduct the necessary cross reference checks.

(3)  For the purposes of paragraph (1), the department may

determine that a claimant has made an active search for suitable

work if the claimant's efforts include actions comparable to

those traditional actions in their trade or occupation by which

jobs have been found by others in the community and labor market

in which the claimant is seeking employment.

(4)  The requirements of this subsection do not apply to any

week in which the claimant is in training approved under section

236(a)(1) of the Trade Act of 1974 (Public Law 93-618, 19 U.S.C.

§ 2101 et. seq.) or any week in which the claimant is required

to participate in reemployment services under section 402(j).

(5)  The requirements of this subsection shall not apply to a

claimant who is laid off for lack of work and advised by the

employer of the date on which the claimant will return to work.

(6)  The department may waive or alter the requirements of

this subsection in cases or situations with respect to which the

secretary finds that compliance with such requirements would be

oppressive or which would be inconsistent with the purposes of

the act.

* * *

(f)  Has earned, subsequent to his separation from work under

circumstances which are disqualifying under the provisions of

subsections 402(b), 402(e), 402(e.1) and 402(h) of this act,

remuneration for services in an amount equal to or in excess of

[six (6)] ten (10) times his weekly benefit rate [irrespective

of whether or not such services were] in "employment" as defined

in this act[.] and earned wages for "employment" as defined in

this act, in ten (10) separate "weeks." The provisions of this

subsection shall not apply to a suspension of work by an

individual pursuant to a leave of absence granted by his last

employer, provided such individual has made a reasonable effort

to return to work with such employer upon the expiration of his

leave of absence. 

* * *

Section 5.  Section 402(b) and (e) of the act, amended August

24, 1953 (P.L.1397, No.396) and October 22, 1981 (P.L.301,

No.106), are amended to read:

Section 402.  Ineligibility for Compensation.--An employe

shall be ineligible for compensation for any week--

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

work without cause of a necessitous and compelling nature

attributable to his employment, irrespective of whether or not

such work is in "employment" as defined in this act: Provided,

That a voluntary leaving work because of a work-related 

disability if the employer is able to provide other suitable

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

compelling nature attributable to his employment: And provided

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further, That no employe shall be deemed to be ineligible under

this subsection where the Federal Unemployment Tax Act requires

eligibility, and provided that no employe shall be deemed

ineligible under this subsection if the employe is a spouse of a

full-time member of the United States Armed Forces and the

employe is leaving employment due to the reassignment of the

military member to a different geographical location: 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 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 attributable to his

employment, 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. 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

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

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

* * *

(e)  In which his unemployment is due to his discharge or

temporary suspension from work for [willful] misconduct

connected with his work, irrespective of whether or not such

work is "employment" as defined in this act[; and]. For purposes

of this subsection, the term "misconduct" shall include, but is

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not limited to, the violation of any reasonable workplace rule

or work-related government regulation or law of which the

employe was aware; failure to maintain a valid license or

certificate that has been issued by a Federal or Commonwealth

agency or political subdivision and which is a requirement of

employment; the deliberate damage to property of the employer or

another employe or the theft of an employer's or another

employe's property; reporting to work in possession of or under

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the influence of illegal drugs or alcohol; threatening a

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coworker or supervisor with physical harm or threatening to harm

the interests of the employer; disregard of supervisor's

reasonable directives or orders and acts of negligence or an act

of negligence which indicates substantial disregard for

employer's interests.

* * *

Section 6.  Section 404 introductory paragraph, (a), (b), (c)

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and (e)(2), amended or added May 14, 1949 (P.L.1355, No.404), 

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March 24, 1964 (Sp.Sess., P.L.53, No.1), January 17, 1968

(P.L.21, No.6), July 10, 1980 (P.L.521, No.108), July 21, 1983

(P.L.68, No.30) and October 19, 1988 (P.L.818, No.109), are

amended to read:

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

shall be paid to each eligible employe in accordance with the

following provisions of this section except that compensation

payable with respect to weeks ending in benefit years which

begin prior to the first day of January [1989] 2012 2013 shall

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be paid on the basis of the provisions of this section in effect

at the beginning of such benefit years.

(a)  (1)  The employe's weekly benefit rate shall be computed

as (1) the amount appearing in Part B of the Table Specified for

the Determination of Rate and Amount of Benefits on the line on

which in Part A there appears the average of the two quarters

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during his base year period in which he earned his "highest

quarterly wage," or (2) fifty per centum (50%) of his full-time

weekly wage, whichever is greater, provided the employe's base

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year wages are sufficient to qualify for the minimum weekly

benefit rate of seventy dollars ($70). Notwithstanding any other

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provision of this act, if an employe's weekly benefit rate, as

calculated under this paragraph, is less than $70, he shall be

ineligible to receive any amount of compensation. If the

employe's weekly benefit rate is not a multiple of one dollar

($1), it shall be rounded to the next lower multiple of one

dollar ($1).

(2)  If the base year wages of an employe whose weekly

benefit rate has been determined under clause (2) of paragraph

(1) of this subsection are insufficient to qualify him under

subsection (c) of this section, his weekly benefit rate shall be

redetermined under clause (1) of paragraph (1) of this

subsection.

(3)  If the base year wages of an employe whose weekly

benefit rate has been determined under clause (1) of paragraph

(1) of this subsection, or redetermined under paragraph (2) of

this subsection, as the case may be, are insufficient to qualify

him under subsection (c) of this section but are sufficient to

qualify him for any one of the next three lower weekly benefit

rates, his weekly benefit rate shall be redetermined at the

highest of such next lower rates.

* * *

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(b)  The "highest quarterly wages" of an employe shall be the

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[total] average of the three quarters during his base year in

which he was paid his highest amount of wages (computed to the

nearest dollar) [which were paid to such employe in that

calendar quarter in which such total wages were highest] during

the base year.

(c)  [Any] The total amount of benefits to which an otherwise

eligible employe who has base year wages in an amount equal to,

or in excess, of the amount of qualifying wages appearing in

Part C of the Table Specified for the Determination of Rate and

Amount of Benefits on the line on which in Part B there appears

his weekly benefit rate, as determined under subsection (a) of

this section, shall be entitled during his benefit year to the

amount appearing in Part [D] B on said line multiplied by the

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number of qualifying credit weeks during his base year, up to a

maximum of twenty-six (26): Provided he had eighteen (18) or

more "credit weeks" during his base year [or Part E provided he

had sixteen (16) or seventeen (17) "credit weeks" during his

base year]. Notwithstanding any other provision of this act, any

employe with less than [sixteen (16)] eighteen (18) "credit

weeks" during the employe's base year shall be ineligible to

receive any amount of compensation.

* * *

(e)  * * *

(2)  (i)  The Table Specified for the Determination of Rate

and Amount of Benefits shall be extended or contracted annually,

automatically by regulations promulgated by the secretary in

accordance with the following procedure: for calendar year one

thousand nine hundred seventy-two and for all subsequent

calendar years, to a point where the maximum weekly benefit rate

[equals] shall equal sixty-six and two-thirds per centum of the

average weekly wage for the [twelve-month] thirty-six-month 

period ending June 30 preceding each calendar year. If the

maximum weekly benefit rate is not a multiple of one dollar

($1), it shall be [increased by one dollar ($1) and then]

rounded to the next lower multiple of one dollar ($1): Provided,

however, That effective with benefit years beginning the first

Sunday at least thirty days after the effective date of this

amendatory act, the per centum stated in this paragraph for

establishing the maximum weekly benefit rate shall be sixty-two

and two-thirds per centum for the remainder of calendar year one

thousand nine hundred seventy-four, sixty-four and two-thirds

per centum for the calendar year one thousand nine hundred

seventy-five, and sixty-six and two-thirds per centum for the

calendar year one thousand nine hundred seventy-six and for all

subsequent calendar years.

The Table Specified for the Determination of Rate and Amount

of Benefits as so extended or contracted shall be effective only

for those claimants whose benefit years begin on or after the

first day of January of such calendar year.

(ii)  For the purpose of determining the maximum weekly

benefit rate, the Pennsylvania average weekly wage in covered

employment shall be computed on the basis of the average annual 

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total wages reported (irrespective of the limit on the amount of

wages subject to contributions) for the [twelve-month] thirty-

six-month period ending June 30 (determined by dividing the

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total wages reported for the thirty-six-month period by 3) and

this amount shall be divided by the average monthly number of

covered workers (determined by dividing the total covered

employment reported for the same [fiscal year by twelve] thirty-

six-month period by thirty-six) to determine the average annual

wage. The average annual wage thus obtained shall be divided by

fifty-two and the average weekly wage thus determined rounded to

the nearest cent. If the maximum weekly benefit rate as

determined under subparagraph (i) is less than the maximum

weekly benefit rate established for calendar year 2011, the

maximum weekly benefit rate will be frozen until the calendar

year in which the new maximum weekly benefit rate as determined

under subparagraph (i) exceeds the maximum weekly benefit rate

for calendar year 2011.

* * *

Section 7.  The act is amended by adding a section to read:

Section 404.2.  Effect of Severance Pay on Wages.--(a)

Severance pay that is paid to an employe who has been determined

to be eligible for benefits shall be treated in the same manner

as remuneration received while working is treated under section

404(d)(1) of this act.

(a.1)  Severance pay is attributed to the day, days, week or

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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

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.

(e)  For the purposes of this section, the term "severance

pay" shall mean 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.

Section 8.  Section 401-A(b) and (c) of the act, amended

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August 4, 2009 (P.L.114, No.30), are amended to read:

Section 401-A.  Definitions.--As used in this article:

* * *

(b)  (1)  There is a "State 'on' indicator" for this State

for a week if the Secretary of Labor and Industry determines in

accordance with the regulations of the United States Secretary

of Labor, that for the period consisting of such week and the

immediately preceding twelve weeks, the rate of insured

unemployment (not seasonally adjusted) under this act:

(i)  (A)  equaled or exceeded one hundred twenty per centum

of the average of such rates for the corresponding thirteen-week

period ending in each of the preceding two calendar years, or

(B)  with respect to compensation for weeks of unemployment

beginning after December 17, 2010, and ending on or before

December 31, 2011, equaled or exceeded one hundred twenty per

centum of the average of such rates for the corresponding

thirteen-week period ending in each of the preceding three

calendar years, and

(ii)  equaled or exceeded five per centum: Provided, That

with respect to benefits for weeks of unemployment beginning

with the passage of this amendment but no earlier than April 3,

1977, the determination of whether there has been a State "on"

or "off" indicator beginning or ending any extended benefit

period shall be made under this paragraph as if (A) this

paragraph did not contain subparagraph (i) thereof, and (B) the

per centum rate indicated in this paragraph were six, except

that, notwithstanding any such provision of this paragraph, any

week for which there would otherwise be a State "on" indicator

shall continue to be such a week and shall not be determined to

be a week for which there is a State "off" indicator.

(2)  There is a "State 'off' indicator" for this State for a

week if the Secretary of Labor and Industry determines in

accordance with the regulations of the United States Secretary

of Labor, that for the period consisting of such week and the

immediately preceding twelve weeks, the rate of insured

unemployment (not seasonally adjusted) under this act:

(i)  was less than one hundred twenty per centum of the

average of such rates for the corresponding thirteen-week period

ending in each of the preceding two calendar years, if paragraph

(1)(i)(A) applies or, the preceding three calendar years, if

paragraph (1)(i)(B) applies, or

(ii)  was less than five per centum.

(3)  Notwithstanding the provisions of this subsection, any

week for which there would otherwise be a State "on" indicator

shall continue to be such a week and shall not be determined to

be a week for which there is a State "off" indicator.

(c)  (1)  There is a "State 'on' indicator" for this State

for a week if:

(i)  the average rate of total unemployment in this State,

seasonally adjusted, for the period consisting of the most

recent three months for which data for all states are published

before the close of such week equals or exceeds six and one-half

per centum; and

(ii)  (A)  the average rate of total unemployment in this

State, seasonally adjusted, for the three-month period referred

to in subparagraph (i) equals or exceeds one hundred ten per

centum of such average rate for either, or both, of the

corresponding three-month periods ending in the two preceding

calendar years, or

(B)  with respect to compensation for weeks of unemployment

beginning after December 17, 2010, and ending on or before

December 31, 2011, the average rate of total unemployment in

this State, seasonally adjusted, for the three-month period

referred to in subparagraph (i) equals or exceeds one hundred

ten per centum of such average rate for any, or all, of the

corresponding three-month periods ending in the three preceding

calendar years.

(2)  There is a State "off" indicator for this State for a

week if the requirements of paragraph (1)(i) or (ii) are not

satisfied.

(3)  This subsection shall be applicable only with respect to

weeks of unemployment for which one hundred per centum Federal

sharing of extended benefits is available under section 2005(a)

of the American Recovery and Reinvestment Act of 2009 (Public

Law 111-5, 123 Stat. 115), without regard to the extension of

Federal sharing for certain claims as provided under section

2005(c) of the American Recovery and Reinvestment Act of 2009,

or under a subsequently enacted provision of Federal law.

(4)  Notwithstanding the provisions of this subsection, any

week for which there would otherwise be a State "on" indicator

shall continue to be such a week and shall not be determined to

be a week for which there is a State "off" indicator.

(5)  For purposes of this subsection, determinations of the

rate of total unemployment for any period, and of any seasonal

adjustment, shall be made by the United States Secretary of

Labor.

* * *

Section 8 9.  Section 505 of the act, amended April 23, 1942

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(Sp. Sess., P.L.60, No.23), is amended to read:

Section 505.  Rules of Procedure.--The manner in which

appeals shall be taken, the reports thereon required from the

department, the claimant and employers, and the conduct of

hearings and appeals, shall be in accordance with rules of

procedure prescribed by the board whether or not such rules

conform to common law or statutory rules of evidence and other

technical rules of procedure. Rules established by the board

shall permit either party to a hearing to testify via telephone,

without regard to distance of hearing location from either

party.

When the same or substantially similar evidence is relevant

and material to the matter in issue in applications and claims

filed by more than one individual or in multiple applications

and claims filed by a single individual the same time and place

for considering each such application and claim may be fixed,

hearings thereon jointly conducted, a single record of the

proceedings made and evidence introduced with respect to any

application or claim considered as introduced with respect to

all of such applications or claims: Provided, That in the

judgment of the board or referee having jurisdiction of the

proceeding such consideration will not be prejudicial to any

party.

Section 9 10.  This act shall apply as follows:

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(1)  The amendment of section 4(g.1) of the act shall

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apply to initial claims filed on or after July 1, 2012.

(1) (2)  The amendment of sections 4(g.1) and section 

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401(f) of the act shall apply to initial claims filed on or

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after January 1, 2012.

(2) (3)  The amendment of sections 302, 401(b) and 402(b)

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and (e) of the act are applicable to initial claims filed on

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or after January 1, 2012.

(3) (4)  The addition of section 302.1 of the act shall

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apply to initial claims filed on or after January 1, 2012.

(4) (5)  The addition of section 404.2 of the act shall

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apply to claims filed on or after January 1, 2013.

(6)  The amendment of section 401-A(b) and (c) of the act

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shall apply retroactively to December 18, 2010.

Section 10 11.  This act shall take effect as follows:

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(1)  This section and section 10(6) shall take effect

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immediately.

(2)  The amendment of section 404 introductory paragraph

and (a)(1) of the act shall take effect January 1, 2013.

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(3)  The amendment of section 401-A(b) and (c) of the act

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shall take effect immediately.

(3) (4)  The remainder of this act shall take effect in

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60 days.