| |
|
| |
| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
| |
| HOUSE BILL |
|
| |
| |
| INTRODUCED BY WHITE, BELFANTI, BRADFORD, BRENNAN, DALEY, DePASQUALE, FREEMAN, GIBBONS, HORNAMAN, JOSEPHS, KULA, MURT, M. O'BRIEN, QUINN, SANTONI, SIPTROTH, K. SMITH AND THOMAS, APRIL 7, 2010 |
| |
| |
| REFERRED TO COMMITTEE ON LABOR RELATIONS, APRIL 7, 2010 |
| |
| |
| |
| AN ACT |
| |
1 | Requiring notification of employees, the Department of Labor and |
2 | Industry and municipalities when mass layoffs and business |
3 | closings occur; and providing for civil penalties and for |
4 | powers and duties of the Department of Labor and Industry. |
5 | The General Assembly of the Commonwealth of Pennsylvania |
6 | hereby enacts as follows: |
7 | Section 1. Short title. |
8 | This act shall be known and may be cited as the Worker |
9 | Adjustment and Retraining Notification Act. |
10 | Section 2. Declaration of policy. |
11 | The General Assembly finds and declares as follows: |
12 | (1) The impact of business closings and job loss due to |
13 | mergers and downsizing can be devastating to both individuals |
14 | and communities. |
15 | (2) With adequate notice of business closings and job |
16 | loss due to mergers and downsizing, employees, unions, State |
17 | and local government, business and community leaders can take |
18 | action to prevent the job loss or to implement plans for new |
|
1 | employment opportunities. |
2 | Section 3. Definitions. |
3 | The following words and phrases when used in this act shall |
4 | have the meanings given to them in this section unless the |
5 | context clearly indicates otherwise: |
6 | "Affected employee." An employee who may reasonably be |
7 | expected to experience an employment loss as a consequence of a |
8 | proposed business closing or mass layoff by the employee's |
9 | employer. |
10 | "Business closing." The permanent or temporary shutdown of a |
11 | single site of employment, or one or more facilities or |
12 | operating units within a single site of employment, if the |
13 | shutdown results in an employment loss at the single site of |
14 | employment during any 30-day period for 30 or more employees, |
15 | excluding any part-time employees. |
16 | "Department." The Department of Labor and Industry of the |
17 | Commonwealth. |
18 | "Employer." A business enterprise that employs: |
19 | (1) fifty or more employees, excluding part-time |
20 | employees, whether at one or multiple sites; or |
21 | (2) fifty or more employees who in the aggregate work at |
22 | least 2,000 hours per week, exclusive of hours of overtime. |
23 | "Employment loss." Any of the following: |
24 | (1) An employment termination, other than a discharge |
25 | for cause, voluntary departure or retirement. |
26 | (2) A mass layoff exceeding six months. |
27 | (3) A reduction in hours of work of more than 50% during |
28 | each month of any six-month period. |
29 | "Mass layoff." A reduction in force that meets both of the |
30 | following criteria: |
|
1 | (1) Is not the result of a business closing. |
2 | (2) Results in an employment loss at the single or |
3 | multiple sites of employment during any 30-day period for: |
4 | (i) at least 33% of the employees and at least 25 |
5 | employees; or |
6 | (ii) at least 250 employees. |
7 | "Part-time employee." An employee who is employed for an |
8 | average of fewer than 20 hours per week or who has been employed |
9 | for fewer than six of the 12 months preceding the date on which |
10 | notice is required. |
11 | "Plant closing." The permanent or temporary shutdown of a |
12 | single site of employment, or one or more facilities or |
13 | operating units within a single site of employment, if the |
14 | shutdown results in an employment loss at the single site of |
15 | employment during any 30-day period for 25 or more employees, |
16 | other than part-time workers. |
17 | "Relocation." The removal of all or substantially all of the |
18 | industrial or commercial operations of an employer to a |
19 | different location 50 or more miles away. |
20 | "Representative." An exclusive representative of employees |
21 | for collective bargaining purposes. |
22 | "Secretary." The Secretary of Labor and Industry of the |
23 | Commonwealth. |
24 | Section 4. Notice required before business closing and mass |
25 | layoffs. |
26 | (a) Parties to be notified.--An employer may not order a |
27 | business closing, mass layoff or relocation until the end of a |
28 | 90-day period after the employer serves written notice of the |
29 | closing or layoff order: |
30 | (1) To each representative of the affected employees as |
|
1 | of the time of the notice or, if there is no representative |
2 | at that time, to each affected employee. |
3 | (2) To the department and the chief elected official of |
4 | the municipality within which the closing or layoff is to |
5 | occur. If there is more than one municipality, the |
6 | municipality that the employer shall notify is the |
7 | municipality to which the employer pays the taxes for the |
8 | year preceding the year for which the determination is made. |
9 | (3) To the local workforce investment board established |
10 | pursuant to the Workforce Investment Act of 1998 (Public Law |
11 | 105-220, 112 Stat. 936) for the locality in which the |
12 | business closing, relocation or mass layoffs will occur. |
13 | (b) Reduction of notification period.--The following shall |
14 | apply: |
15 | (1) An employer may order a business closing or mass |
16 | layoff before the conclusion of the 90-day period if the |
17 | closing or mass layoff is caused by business circumstances |
18 | that were not reasonably foreseeable as of the time that |
19 | notice would have been required. |
20 | (2) No notice under this act shall be required if the |
21 | business closing or mass layoff is due to any form of natural |
22 | disaster, including, but not limited to, a flood, earthquake |
23 | or drought. |
24 | (3) An employer relying on this subsection shall give as |
25 | much notice as is practicable and at that time shall give a |
26 | brief statement of the basis for reducing the notification |
27 | period. |
28 | (c) Extension of layoff period.--A layoff of more than six |
29 | months which, at its outset, was announced to be a layoff of six |
30 | months or less shall be treated as an employment loss under this |
|
1 | act unless: |
2 | (1) The extension beyond six months is caused by |
3 | business circumstances, including unforeseeable changes in |
4 | price or cost, not reasonably foreseeable at the time of the |
5 | initial layoff. |
6 | (2) Notice is given at the time it becomes reasonably |
7 | foreseeable that the extension beyond six months is required. |
8 | (d) Determinations regarding employment loss.–-For purposes |
9 | of this section, in determining whether a business closing or |
10 | mass layoff has occurred or will occur, employment losses for |
11 | two or more groups at a single site of employment, each of which |
12 | is less than the minimum number of employees specified in the |
13 | definition of "business closing" or "mass layoff" under section |
14 | 3, but which in the aggregate exceed that minimum number and |
15 | occur within any 90-day period, shall be considered to be a |
16 | business closing or mass layoff unless the employer demonstrates |
17 | that the employment losses are the result of separate and |
18 | distinct actions and causes and not an attempt by the employer |
19 | to evade the requirements of this act. |
20 | Section 5. Special circumstances. |
21 | (a) Sale or merger of business.--The following shall apply: |
22 | (1) In the case of a sale or merger of part or all of an |
23 | employer's business, the seller or original employer shall be |
24 | responsible for providing notice for any business closing or |
25 | mass layoff in accordance with section 4, up to and including |
26 | the effective date of the sale or merger. |
27 | (2) After the effective date of the sale or merger of |
28 | part or all of an employer's business, the purchaser or |
29 | resulting merged entity shall be responsible for providing |
30 | notice for any business closing or mass layoff in accordance |
|
1 | with section 4. |
2 | (3) Notwithstanding any other provision of this act, a |
3 | person who is an employee of the seller or original employer |
4 | other than a part-time employee as of the effective date of |
5 | the sale or merger shall be considered an employee of the |
6 | purchaser or resulting merged entity immediately after the |
7 | effective date of the sale or merger. |
8 | (b) Exception.--An employee may not be considered to have |
9 | experienced an employment loss if the closing or layoff is the |
10 | result of the relocation or consolidation of part or all of the |
11 | employer's business and, prior to the closing or layoff: |
12 | (1) the employer offers to transfer the employee to a |
13 | different site of employment within a reasonable commuting |
14 | distance with no more than a six-month break in employment; |
15 | or |
16 | (2) the employer offers to transfer the employee to any |
17 | other site of employment regardless of distance with no more |
18 | than a six-month break in employment and the employee accepts |
19 | within 30 days of the offer or of the closing or layoff, |
20 | whichever is later. |
21 | Section 6. Exemptions. |
22 | (a) General rule.--This act shall not apply to a business |
23 | closing or mass layoff if: |
24 | (1) The closing is of a temporary facility or the |
25 | closing or layoff is the result of the completion of a |
26 | particular project or undertaking and the affected employees |
27 | were hired with the understanding that their employment was |
28 | limited to the duration of the facility or the project or |
29 | undertaking. |
30 | (2) The closing or layoff constitutes a strike or |
|
1 | constitutes a lockout not intended to evade the requirements |
2 | of this act. |
3 | (b) Plant closings.--In the case of a plant closing, an |
4 | employer is not required to comply with the notice requirement |
5 | in section 4 if: |
6 | (1) at the time the notice would have been required, the |
7 | employer was actively seeking capital or business; |
8 | (2) the capital or business sought, if obtained, would |
9 | have enabled the employer to avoid or postpone the relocation |
10 | or termination; and |
11 | (3) the employer reasonably and in good faith believed |
12 | that giving the notice required by section 4 of this act |
13 | would have precluded the employer from obtaining the needed |
14 | capital or business. |
15 | (c) Economic strikers.--Nothing in this act shall require an |
16 | employer to serve written notice pursuant to section 4 when |
17 | permanently replacing a person who is deemed to be an economic |
18 | striker under the National Labor Relations Act (49 Stat. 449, 29 |
19 | U.S.C. § 151 et seq.). Nothing in this act shall be deemed to |
20 | validate or invalidate any judicial or administrative ruling |
21 | relating to the hiring of permanent replacements for economic |
22 | strikers under the National Labor Relations Act. |
23 | Section 7. Administration and enforcement requirements. |
24 | The following shall apply: |
25 | (1) The secretary shall prescribe such rules and |
26 | regulations as may be necessary to carry out this act. The |
27 | rules and regulations shall, at a minimum, include provisions |
28 | that allow the parties access to administrative hearings for |
29 | any actions of the department under this section. |
30 | (2) In any investigation or proceeding under this act, |
|
1 | the secretary has, in addition to all other powers granted by |
2 | law, the authority to examine any information of an employer |
3 | necessary to determine whether a violation of this act has |
4 | occurred, including to determine the validity of any defense. |
5 | (3) Except as provided in this section, information |
6 | obtained through administration of this act from an employer |
7 | subject to this act and that is not otherwise obtainable by |
8 | the secretary under this section shall be confidential and |
9 | shall not be published or open to public inspection. Prior to |
10 | public disclosure of any such information in connection with |
11 | any court action or proceeding, the employer shall be given a |
12 | reasonable opportunity to make application to protect the |
13 | information's confidentiality. |
14 | (4) No decision or order issued pursuant to this act |
15 | shall be admissible or used in evidence in any subsequent |
16 | court proceeding except in an action by the secretary or the |
17 | employer to implement, enforce or challenge a determination |
18 | made by the secretary pursuant to this act. |
19 | (5) Any officer or employer of the State, any officer or |
20 | employee of any entity authorized to obtain information |
21 | pursuant to this section and any agent to this State or of |
22 | such entity who, except with authority of the secretary under |
23 | this section, discloses information commits a misdemeanor. |
24 | (6) If, after an administrative hearing, the secretary |
25 | determines that an employer has violated a requirement of |
26 | this act or rules or regulations promulgated under this act, |
27 | the secretary shall issue an order that shall include any |
28 | penalties assessed by the secretary under this act. Upon the |
29 | entry of the order, a party aggrieved thereby may commence a |
30 | proceeding for review pursuant to the civil practice law and |
|
1 | rules within 30 days from the notice of the filing of the |
2 | order in the office of the secretary. The proceeding shall be |
3 | commenced in the Commonwealth Court. If the order is not |
4 | reviewed or if it is reviewed and the final decision is in |
5 | favor of the secretary, the secretary may file with the clerk |
6 | of the county where the employer resides or has a place of |
7 | business the order of the secretary containing the amount |
8 | found to be due. The filing of the order shall have the full |
9 | force and effect of a judgment duly docketed in the office of |
10 | the clerk. The order may be enforced by and in the name of |
11 | the secretary in the same manner, and with like effect, as |
12 | that prescribed by the civil practice law and rules for the |
13 | enforcement of a money judgment. |
14 | (7) The secretary shall promptly distribute any back pay |
15 | and the value of benefits recovered to employees subject to |
16 | the violation. |
17 | Section 8. Civil actions and remedies. |
18 | (a) Liability of employer.--An employer who orders a |
19 | business closing or mass layoff in violation of section 4 is |
20 | liable to each aggrieved employee who suffers an employment loss |
21 | as a result of the closing or layoff for: |
22 | (1) back pay for each day of violation at a rate of |
23 | compensation not less than the higher of: |
24 | (i) the average regular rate received by the |
25 | employee during the last three years of the employee's |
26 | employment; or |
27 | (ii) the final regular rate received by the |
28 | employee; and |
29 | (2) benefits under an employee benefit plan, including |
30 | the cost of medical expenses incurred during the employment |
|
1 | loss that would have been covered under an employee benefit |
2 | plan if the employment loss had not occurred. |
3 | (b) Calculation of liability.--Liability shall be calculated |
4 | for the period of the violation up to a maximum of 60 days but |
5 | in no event for more than one-half the number of days the |
6 | employee was employed by the employer. |
7 | (c) Not considered remuneration.--Payments to an employee |
8 | under this section by an employer who has failed to provide the |
9 | advance notice of a facility closure required by this act or the |
10 | Federal Worker Adjustment and Retraining Notification Act |
11 | (Public Law 100-379, 29 U.S.C. Sec. 2101 et seq.) shall not be |
12 | construed as remuneration under this act. Unemployment insurance |
13 | benefits may not be denied or reduced because of the receipt of |
14 | payments related to an employer's violation of this act or the |
15 | Federal Worker Adjustment and Retraining Notification Act. |
16 | (d) Reduction of liability.--The amount for which an |
17 | employer is liable under subsection (a) shall be reduced by any: |
18 | (1) wages paid by the employer to the employee for the |
19 | period of the violation; |
20 | (2) voluntary and unconditional payment by the employer |
21 | to the employee that is not required by any legal obligation; |
22 | (3) payment by the employer to a third party or trustee, |
23 | such as premiums for health benefits or payments to a defined |
24 | contribution pension plan on behalf of and attributable to |
25 | the employee for the period of the violation; |
26 | (4) liability paid by the employer under any applicable |
27 | Federal law governing notification of mass layoffs, plant |
28 | closings or relocations; |
29 | (5) in an administrative proceeding by the secretary, |
30 | liability paid by the employer prior to the secretary's |
|
1 | determination as the result of a private action brought under |
2 | this article; and |
3 | (6) in a private action brought under this act, |
4 | liability paid by the employer in an administrative |
5 | proceeding by the commissioner prior to the adjudication of |
6 | such private action. |
7 | (e) Credit.--In addition, any liability incurred under |
8 | subsection (d)(1) with respect to a defined benefit pension plan |
9 | may be reduced by crediting the employee with service for all |
10 | purposes under the plan for the period of the violation. |
11 | (f) Payment to aggrieved employees.--An employer who |
12 | violates the provisions of section 4 with respect to a |
13 | municipality shall be subject to a civil penalty of not more |
14 | than $500 for each day of the violation, except that this |
15 | penalty shall not apply if the employer pays to each aggrieved |
16 | employee the amount for which the employer is liable to that |
17 | employee within three weeks from the date the employer orders |
18 | the closing or layoff. |
19 | Section 9. Civil penalty. |
20 | (a) Failure of notice.--An employer who fails to give notice |
21 | as required by section 4 shall be subject to a civil penalty of |
22 | not more than $500 for each day of the violation. The employer |
23 | shall not be subject to a civil penalty under this section if |
24 | the employer pays to all applicable employees the amounts for |
25 | which the employer is liable under section 4 within 21 days from |
26 | the date the employer orders the mass layoff, relocation or |
27 | employment loss. |
28 | (b) Maximum penalty.--The total amount of penalties for |
29 | which an employer may be liable under this section shall not |
30 | exceed the maximum amount of penalties for which the employer |
|
1 | may be liable under Federal law for the same violation. |
2 | (c) Penalty payments.--Any penalty amount paid by the |
3 | employer under Federal law shall be considered a payment made |
4 | under this article. |
5 | (d) Reduction of liability or penalty.--If an employer that |
6 | has violated this act proves to the satisfaction of the |
7 | secretary or the court that the act or omission that violated |
8 | this act was in good faith and that the employer had reasonable |
9 | grounds for believing that the act or omission was not a |
10 | violation of this act, the secretary and the court may, in its |
11 | discretion, reduce the amount of the liability or penalty |
12 | provided for in this section. In determining the amount of the |
13 | reduction, the commissioner shall consider: |
14 | (1) the size of the employer; |
15 | (2) hardships imposed on employees by the violation; |
16 | (3) efforts by the employer to mitigate the violation; |
17 | and |
18 | (4) the grounds for the employer's belief. |
19 | (e) Jurisdiction.--A person seeking to enforce liability, |
20 | including a representative of employees or a municipality |
21 | aggrieved under subsection(d)(1) or (4), may sue on his or her |
22 | own behalf or for other persons similarly situated, or both, in |
23 | any court of common pleas in which the violation is alleged to |
24 | have occurred, or in which the employer transacts business. |
25 | (f) No injunction.--The secretary shall not have the |
26 | authority to enjoin a plant closing, relocation or mass layoff |
27 | under this act. |
28 | (g) Attorney fees.--In an action under this subsection, the |
29 | court, in its discretion, may allow the prevailing party |
30 | reasonable attorney fees as part of the costs. |
|
1 | (h) Definition.--As used in this section, an "aggrieved |
2 | employee" shall mean an employee who: |
3 | (1) worked for an employer that ordered a business |
4 | closing or mass layoff; and |
5 | (2) as a result of the employer's failure to comply with |
6 | section 4, did not receive timely notice directly or through |
7 | the employee's representative as required by this act. |
8 | Section 10. Procedures and other rights. |
9 | The following shall apply: |
10 | (1) The rights and remedies provided to employees by |
11 | this act are in addition to and not in lieu of any other |
12 | contractual or statutory rights and remedies of the employees |
13 | and are not intended to alter or affect those rights and |
14 | remedies, except that the period of notification required by |
15 | this act shall run concurrently with any period of |
16 | notification required by contract or by any other statute. |
17 | (2) Nothing in this act shall be read to abridge, |
18 | abrogate or restrict the right of any State or local entity |
19 | to require an employer that is receiving State or local |
20 | economic development incentives for doing or continuing to do |
21 | business in this State from being required to provide |
22 | additional or earlier notice as a condition for the receipt |
23 | of such incentives. |
24 | (3) Nothing in this act shall be read to prevent an |
25 | employer who is not required to comply with the notice |
26 | requirements of this section, to the extent possible, to |
27 | provide notice to its employees about a proposal to close a |
28 | plant or permanently reduce its work force. |
29 | Section 11. Promulgation of regulations. |
30 | The department shall promulgate such regulations as may be |
|
1 | necessary to carry out the provisions of this act. |
2 | Section 12. Form of notice. |
3 | The mailing of notice to an employee's last known address or |
4 | inclusion of notice in the employee's paycheck shall be deemed |
5 | acceptable methods for fulfillment of the employer's obligation |
6 | to give notice to each affected employee under this act. |
7 | Section 13. Effective date. |
8 | This act shall take effect in 60 days. |
|