Regular Session 2015-2016 House Bill 1477 P.N. 2090

PRINTER'S NO. 2090

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

1477

Session of

2015

INTRODUCED BY DiGIROLAMO, GAINEY, D. MILLER, WHEELAND, KINSEY,

ROZZI, DAVIS, LONGIETTI, DRISCOLL, BARRAR, D. COSTA,

SCHLOSSBERG, GERGELY, FARRY, HARHAI, HANNA, DERMODY, McNEILL,

HARKINS, DeLUCA AND CARROLL, AUGUST 10, 2015

REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, AUGUST 10, 2015

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 the definitions of "base

year," "credit week" and "employer"; in contributions by

employers and employees, providing for supplemental

contributions by employees and further providing for

reciprocal agreements; and, in compensation, further

providing or qualifications required to secure compensation

and for rate and amount of compensation.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 4(a), (g.1) and (j)(2.1) of the act of

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

the Unemployment Compensation Law, amended July 10, 1980

(P.L.521, No.108), June 15, 2005 (P.L.8, No.5) and June 17, 2011

(P.L.16, No.6), 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.

(a) "Base year" means [the first] four of the last [five

completed] six calendar quarters immediately preceding the first

day of an individual's benefit year.

* * *

(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[:

(1) One] one hundred dollars ($100). [This paragraph shall

expire December 31, 2014.

(2) 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." This paragraph shall take effect

January 1, 2015.]

Only one credit week can be established with respect to any one

calendar week with respect to work in the employ of any one

employer.

* * *

(j) * * *

(2.1) An individual or entity that transfers or otherwise

utilizes the services of some or all of its work force to the

payroll of another individual or entity, directly or indirectly,

as part of or resulting in an arrangement whereby the individual

or entity shares employer functions with respect to some or all

of its work force with the other individual or entity shall be

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the employer of the employe or employes covered by the

arrangement with the other individual or entity. This paragraph

shall include, without limitation, an arrangement known as a

professional employer arrangement or employe leasing

arrangement. This paragraph does not include a temporary help

arrangement in which an individual or entity utilizes one or

more workers supplied by another individual or entity to

supplement its work force in special, temporary work situations

such as absences, skill shortages, seasonal work loads and

special assignments.

* * *

Section 2. The act is amended by adding a section to read:

Section 301.10. Supplemental Contributions by Employes.--(a)

Notwithstanding any other provision of this act, each employe

shall pay supplemental contributions at a rate of one cent

($.01) per hour worked and compensated for all employment

without regard to the limitation specified in section 4(x)(1).

(b) Each employer subject to this act shall be responsible

for withholding and shall withhold, in trust, such supplemental

contributions from the wages of its employes at the time such

wages are paid and shall report and transmit such deductions to

the department for deposit into the Unemployment Compensation

Trust Fund for the sole and exclusive purpose of the payment of

benefits to eligible claimants pursuant to this act and in

accordance with rules and procedures established by the

department.

agent of any employer, who violates the trust provision of this

section or who fails to withhold, hold in trust or fails to

transmit to the department all supplemental contributions

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withheld from the wages or earnings of employes in accordance

with the rules and procedures established by the department

shall be subject to the provisions of sections 301(a)(2), 308,

308.1, 308.2, 308.3 and 309.

(d) This section shall not be deemed to affect or impair the

operation of any State statute, ordinance or resolution of a

political subdivision that levies or collects any wage tax or

similar tax. Supplemental contributions made pursuant to this

section shall not limit, restrict, reduce or otherwise affect

any tax on wages or similar tax or any funding requirements

provided for under any other section of this act.

Section 3. Section 312 of the act is amended by adding a

subsection to read:

Section 312. Reciprocal Agreements.--The department is

hereby authorized to enter into reciprocal arrangements with

appropriate and duly authorized agencies of other states or of

the Federal Government, or both, whereby--

* * *

(a.1) A claimant who is otherwise eligible for benefits

under this act, and who is not domiciled in this Commonwealth,

shall be eligible for benefits at either the claimant's state of

domicile or in this Commonwealth, whichever rate is lower.

* * *

Section 4. Section 401 introductory paragraph, (a) and (f)

of the act, amended September 29, 1951 (P.L.1580, No.408), June

12, 2012 (P.L.577, No.60) and October 23, 2013 (P.L.637, No.75),

are amended to read:

Section 401. Qualifications Required to Secure

Compensation.--Compensation shall be payable during the period

of an eligible claimant's benefit year in an amount of not less

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than twenty-six (26) times the claimant's determined or

redetermined weekly benefit amount to any employe who is or

becomes unemployed, and who--

(a) [Satisfies both of the following requirements:

(1)] Has, within his base year, been paid wages for

employment as required by section 404(c) of this act.

(2) Except as provided in section 404(a)(3), not less than

[forty-nine and one-half per centum (49.5%)] twenty-eight per

centum (28%) of the employe's total base year wages have been

paid in one or more quarters, other than the highest quarter in

such employe's base year.

* * *

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

circumstances which are otherwise disqualifying under the

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

402(k) of this act, remuneration for services in an amount equal

to or in excess of six (6) times his determined or redetermined

weekly benefit rate, irrespective of whether such services were

in "employment" as defined in this act. 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] from

employment with his or her last employer, provided such

individual has made a reasonable effort to return to work with

such employer upon the expiration of his or her leave of

absence.

* * *

Section 5. Section 404(a)(3) of the act, amended June 12,

2012 (P.L.577, No.60), is amended to read:

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

shall be paid to each eligible employe in accordance with the

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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 shall be paid on

the basis of the provisions of this section in effect at the

beginning of such benefit years.

(a) * * *

(3) If [an employe's] the base year wages of any employe

whose weekly benefit rate [as] 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, [is less

than the maximum weekly benefit rate and the employe's base year

wages are] is insufficient to qualify [him] the employe under

subsection (c) of this section but [are] is sufficient to

qualify [him] the employe for any one of the next [two] four

lower weekly benefit rates, [his] the employe's weekly benefit

rate shall be redetermined at the highest of such next lower

rates.

* * *

Section 6. This act shall take effect in 30 days.

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