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| PRIOR PRINTER'S NO. 1643 | PRINTER'S NO. 1931 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY McILHINNEY, GREENLEAF, ALLOWAY, WAUGH, BROWNE, TARTAGLIONE, WARD, M. WHITE, BRUBAKER AND TOMLINSON, FEBRUARY 1, 2010 |
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| SENATOR GORDNER, LABOR AND INDUSTRY, AS AMENDED, MAY 4, 2010 |
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| AN ACT |
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1 | Amending the act of December 5, 1936 (2nd Sp.Sess., 1937 |
2 | P.L.2897, No.1), entitled "An act establishing a system of |
3 | unemployment compensation to be administered by the |
4 | Department of Labor and Industry and its existing and newly |
5 | created agencies with personnel (with certain exceptions) |
6 | selected on a civil service basis; requiring employers to |
7 | keep records and make reports, and certain employers to pay |
8 | contributions based on payrolls to provide moneys for the |
9 | payment of compensation to certain unemployed persons; |
10 | providing procedure and administrative details for the |
11 | determination, payment and collection of such contributions |
12 | and the payment of such compensation; providing for |
13 | cooperation with the Federal Government and its agencies; |
14 | creating certain special funds in the custody of the State |
15 | Treasurer; and prescribing penalties," further providing for | <-- |
16 | shared work program further providing for relief from charges | <-- |
17 | for certain employers and for establishment and maintenance |
18 | of employer's reserve accounts; and providing for relief from |
19 | charges and for shared work program. |
20 | The General Assembly of the Commonwealth of Pennsylvania |
21 | hereby enacts as follows: |
22 | Section 1. The act of December 5, 1936 (2nd Sp.Sess., 1937 | <-- |
23 | P.L.2897, No.1), known as the Unemployment Compensation Law, is |
24 | amended by adding an article to read: |
25 | ARTICLE XIII |
26 | SHARED WORK PROGRAM |
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1 | Section 1301. Definitions. |
2 | The following words and phrases when used in this act shall |
3 | have the meanings given to them in this section unless the |
4 | context clearly indicates otherwise: |
5 | "Affected unit." A department, shift or other organizational |
6 | unit of two or more employees that is designated by an employer |
7 | to participate in a shared-work plan. |
8 | "Approved shared-work plan" or "approved plan." An |
9 | employer's shared-work plan which meets the requirements of |
10 | section 1303 and which the department approves in writing. |
11 | "Fringe benefit." Health insurance, a retirement benefit |
12 | received under a pension plan, a paid vacation day, a paid |
13 | holiday, sick leave and any other similar employee benefit |
14 | provided by an employer. |
15 | "Participating employee." An employee in the affected unit |
16 | whose hours of work are reduced by the reduction percentage |
17 | under the shared-work plan. |
18 | "Participating employer." An employer who has a shared-work |
19 | plan in effect. |
20 | "Reduction percentage." The percentage by which each |
21 | participating employee's weekly hours of work are reduced under |
22 | a shared-work plan in accordance with section 1303(b). |
23 | "Shared-work plan." A plan for reducing unemployment under |
24 | which participating employees of an affected unit share the work |
25 | remaining after reduction in their normal weekly hours of work. |
26 | Section 1302. Application to approve plan. |
27 | (a) Requirements.--An employer that meets all of the |
28 | following requirements may apply to the department for approval |
29 | of a shared-work plan: |
30 | (1) The employer has filed all quarterly reports and |
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1 | other reports required under this act and has paid all |
2 | contribution, reimbursement, interest and penalty due through |
3 | the date of the employer's application. |
4 | (2) If the employer is contributory, the employer's |
5 | reserve account balance as of the most recent computation |
6 | date preceding the date of the employer's application is a |
7 | positive number. |
8 | (3) The employer has paid wages for the 12 consecutive |
9 | calendar quarters preceding the date of the employer's |
10 | application. |
11 | (b) Application.--An application under this section shall be |
12 | made in the manner prescribed by the department and contain all |
13 | information required by the department, including the following: |
14 | (1) The employer's assurance that it will provide |
15 | reports to the department relating to the operation of its |
16 | shared-work plan at the times and in the manner prescribed by |
17 | the department and containing all information required by the |
18 | department, including the number of hours worked each week by |
19 | participating employees. |
20 | (2) The employer's assurance that it will not hire new |
21 | employees in, or transfer employees to, the affected unit |
22 | during the effective period of the shared-work plan. |
23 | (3) The employer's assurance that it will not lay off |
24 | participating employees during the effective period of the |
25 | shared-work plan, or reduce participating employees' hours of |
26 | work by more than the reduction percentage during the |
27 | effective period of the shared-work plan, except in cases of |
28 | illness, holidays, vacation or similar circumstances. |
29 | (4) The employer's certification that the implementation |
30 | of a shared-work plan is in lieu of temporary layoffs that |
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1 | would affect at least 10% of the employees in the affected |
2 | unit and would result in an equivalent reduction in work |
3 | hours. |
4 | (c) Multiple plans.--An employer may apply to the department |
5 | for approval of more than one shared-work plan. |
6 | Section 1303. Plan requirements. |
7 | (a) General rule.--The department may approve a shared-work |
8 | plan only if the plan meets all of the following requirements: |
9 | (1) The shared-work plan applies to one affected unit. |
10 | (2) All employees in the affected unit are participating |
11 | employees, except that the following employees may not be |
12 | participating employees: |
13 | (i) An employee who has been employed in the |
14 | affected unit for less than three months prior to the |
15 | date the employer applies for approval of the shared-work |
16 | plan. |
17 | (ii) An employee whose hours of work per week |
18 | determined under paragraph (5) is 40 or more hours. |
19 | (3) There are no fewer than two participating employees. |
20 | (4) The participating employees are identified by name |
21 | and Social Security number. |
22 | (5) The number of hours a participating employee will |
23 | work each week during the effective period of the plan is |
24 | determined by the following formula: |
25 | employee's normal weekly hours of |
26 | work x (100% - reduction percentage) |
27 | (6) As a result of a decrease in the number of hours |
28 | worked by each participating employee, there is a |
29 | corresponding reduction in wages. |
30 | (7) If any participating employee is covered by a |
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1 | collective bargaining agreement, the plan is approved in |
2 | writing by the collective bargaining representative. |
3 | (8) The plan does not affect the fringe benefits of any |
4 | participating employee not covered by a collective bargaining |
5 | agreement. |
6 | (9) The plan does not serve as a subsidy to seasonal |
7 | employers during the off-season or as a subsidy to employers |
8 | who traditionally use part-time employees. |
9 | (10) The effective period of the plan is not more than |
10 | 52 consecutive weeks. |
11 | (11) The effective period of the plan combined with |
12 | effective periods of the participating employer's prior plans |
13 | does not equal more than 104 weeks out of a 156-week period. |
14 | (12) The reduction percentage satisfies the requirements |
15 | of subsection(b). |
16 | (b) Reduction percentage.--The reduction percentage under an |
17 | approved shared-work plan shall meet all of the following |
18 | requirements: |
19 | (1) The reduction percentage shall be no less than 20% |
20 | and no more than 40%. |
21 | (2) The reduction percentage shall be the same for all |
22 | participating employees. |
23 | (3) The reduction percentage shall not change during the |
24 | period of the shared-work plan unless the plan is modified in |
25 | accordance with section 1307. |
26 | Section 1304. Approval or disapproval of shared-work plan. |
27 | The department shall approve or disapprove a shared-work plan |
28 | no later than 15 days after the date the employer's shared-work |
29 | plan application that meets the requirements of section 1302(b) |
30 | is received by the department. The department's decision shall |
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1 | be made in writing and, if the shared-work plan is disapproved, |
2 | shall include the reasons for the disapproval. |
3 | Section 1305. Effective period of plan. |
4 | (a) Number of weeks.--A shared-work plan is effective for |
5 | the number of consecutive weeks indicated in the employer's |
6 | application, or a lesser number of weeks as approved by the |
7 | department, unless sooner terminated in accordance with section |
8 | 1308. |
9 | (b) Start date.--The effective period of the shared-work |
10 | plan shall begin with the first calendar week following the date |
11 | on which the department approves the plan. |
12 | Section 1306. Criteria for compensation. |
13 | (a) General rule.--Compensation shall be payable to a |
14 | participating employee for a week within the effective period of |
15 | an approved shared-work plan during which the employee works the |
16 | number of hours determined under section 1303(a)(5) on the same |
17 | terms, in the same amount and subject to the same conditions |
18 | that would apply to the participating employee without regard to |
19 | this article, except as provided for in subsection (b). |
20 | (b) Additional criteria.-- |
21 | (1) A participating employee shall not be required to be |
22 | unemployed. |
23 | (2) Section 404(d)(1) shall be applicable as if it |
24 | provided as follows: A participating employee shall be paid |
25 | compensation in an amount equal to his weekly benefit rate |
26 | less the total of: |
27 | (i) an amount equal to the product of his weekly |
28 | benefit rate and the reduction percentage, rounded to the |
29 | next lower whole dollar amount; and |
30 | (ii) remuneration earned from an employer other than |
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1 | the participating employer and remuneration from self- |
2 | employment that is not disqualifying under section |
3 | 402(h), except that remuneration earned from employment |
4 | or self-employment that commenced before the |
5 | participating employer applied for approval of the |
6 | shared-work plan will not be deducted if the preexisting |
7 | employment or self-employment does not increase during |
8 | the effective period of the plan. |
9 | (3) The department shall not deny compensation to a |
10 | participating employee for any week during the effective |
11 | period of the shared-work plan by reason of the application |
12 | of any provision of this act relating to active search for |
13 | work or refusal to apply for or accept work other than work |
14 | offered by the participating employer. |
15 | (c) Express work hours.--A participating employee's |
16 | eligibility for compensation for a week within the effective |
17 | period of an approved shared-work plan during which the employee |
18 | works more hours than the number of hours determined under |
19 | section 1303(a)(5) shall be determined without regard to this |
20 | article. |
21 | (d) Number of hours.--For purposes of this section, the |
22 | following shall apply: |
23 | (1) To the extent that a participating employee works |
24 | fewer hours during a week than the number of hours determined |
25 | under section 1303(a)(5) by reason of illness, holidays, |
26 | vacation or the like, the employee will be deemed to have |
27 | worked the number of hours determined under section 1303(a) |
28 | (5). |
29 | (2) To the extent that a participating employee receives |
30 | remuneration for a week from the participating employer for |
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1 | hours in excess of the number of hours determined under |
2 | section 1303(a)(5), the employee will be deemed to have |
3 | worked more hours than the number of hours determined under |
4 | section 1303(a)(5) for that week. |
5 | Section 1307. Modification of plan. |
6 | An employer may apply to the department for approval to |
7 | modify a shared-work plan to meet changed conditions. The |
8 | department shall reevaluate the plan and may approve the |
9 | modified plan if it meets the requirements for approval under |
10 | section 1304. If the modifications cause the shared-work plan to |
11 | fail to meet the requirements for approval, the department shall |
12 | disapprove the proposed modifications. |
13 | Section 1308. Termination of plan. |
14 | (a) General rule.--The secretary may terminate a shared-work |
15 | plan for good cause. |
16 | (b) Good cause.--For purposes of subsection (a), good cause |
17 | includes any of the following: |
18 | (1) The plan is not being executed according to its |
19 | approved terms and conditions. |
20 | (2) The participating employer fails to comply with the |
21 | assurances given in the plan. |
22 | (3) The participating employer or a participating |
23 | employee violates any criteria on which approval of the plan |
24 | was based. |
25 | (c) Termination by employer.--The employer may terminate a |
26 | shared-work plan by written notice to the department. |
27 | Section 1309. Department discretion. |
28 | The decision to approve or disapprove a shared-work plan, to |
29 | approve or disapprove a modification of a shared-work plan or to |
30 | terminate a shared-work plan will be made within the |
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1 | department's discretion. Such decisions are not subject to the |
2 | appeal provisions of Article V. |
3 | Section 1310. Publication of notice. |
4 | The department shall transmit to the Legislative Reference |
5 | Bureau for publication in the Pennsylvania Bulletin notice that |
6 | the provision of this article have been approved by the |
7 | Department of Labor as required under section 3304(a)(4)(E) of |
8 | the Federal Unemployment Tax Act (Public Law 86-778, 26 U.S.C. § |
9 | 3304(a)(4)(E)) and section 303(a)(5) of the Social Security Act |
10 | (49 Stat. 620, 42 U.S.C. § 503(a)(5)). |
11 | Section 1311. Expiration. |
12 | This article shall expire five years from the effective date |
13 | of this section. |
14 | Section 2. This act shall take effect upon publication of |
15 | the notice under section 1310 of the act, or July 1, 2010, |
16 | whichever is later. |
17 | Section 1. Section 213 of the act of December 5, 1936 (2nd | <-- |
18 | Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment |
19 | Compensation Law, added December 9, 2002 (P.L.1330, No.156), is |
20 | amended to read: |
21 | Section 213. Relief from Charges for Certain Employers.--(a) |
22 | An employer that makes payments in lieu of contributions |
23 | pursuant to Article X, XI or XII shall be relieved of charges in |
24 | accordance with section [302(a)] 302.1 and regulations of the |
25 | department, for compensation paid on applications for benefits |
26 | effective during a calendar year, if the employer satisfies the |
27 | following requirements: |
28 | (1) The employer pays a nonrefundable solvency fee under |
29 | subsection (b) for the calendar year within thirty (30) days |
30 | after notice of the fee is sent to the employer's last known |
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1 | address. The department may for good cause extend the period |
2 | within which the fee must be paid. |
3 | (2) All reports required by this act and regulations of the |
4 | department for calendar quarters through the second calendar |
5 | quarter of the preceding calendar year are filed. |
6 | (b) An employer's solvency fee for a calendar year shall be |
7 | the monetary amount determined by multiplying the solvency fee |
8 | rate for the year by the amount of wages paid, without regard to |
9 | the exclusion in section 4(x)(1), by the employer in the four |
10 | consecutive calendar quarters ending on June 30 of the preceding |
11 | calendar year, provided that an employer's solvency fee for a |
12 | year shall not be less than twenty-five dollars ($25). |
13 | (1) For calendar years 2003, 2004 and 2005, the solvency fee |
14 | rate shall be three ten thousandths (.0003). |
15 | (2) In 2005 the secretary shall redetermine the solvency fee |
16 | rate. The secretary shall redetermine the rate so that the |
17 | unrounded rate yields solvency fees approximately equal to the |
18 | amount of compensation for which charges are relieved under this |
19 | section. For purposes of redetermining the rate, the secretary |
20 | shall use the amount of compensation for which charges are |
21 | relieved under this section paid during 2003 and 2004 and the |
22 | amount of wages paid, without regard to the exclusion in section |
23 | 4(x)(1), during the same time period by employers who paid a |
24 | solvency fee under this section. The rate as redetermined shall |
25 | take effect for the next calendar year and shall remain in |
26 | effect for three years. |
27 | (3) Beginning in 2008 and each fifth year thereafter, the |
28 | secretary shall redetermine the solvency fee rate. The secretary |
29 | shall redetermine the rate so that the unrounded rate yields |
30 | solvency fees approximately equal to the amount of compensation |
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1 | for which charges are relieved under this section. For purposes |
2 | of redetermining the rate, the secretary shall use the amount of |
3 | compensation for which charges are relieved under this section |
4 | paid during the five calendar years immediately preceding the |
5 | year in which the redetermination occurs and the amount of wages |
6 | paid, without regard to the exclusion in section 4(x)(1), during |
7 | the same time period by employers who paid a solvency fee under |
8 | this section. The rate as redetermined shall take effect for the |
9 | next calendar year and shall remain in effect for five years. |
10 | (4) If the solvency fee rate redetermined under paragraphs |
11 | (2) and (3) is not a multiple of one-hundredth of one per cent, |
12 | it shall be rounded to the next higher multiple of one-hundredth |
13 | of one per cent. |
14 | (c) Solvency fees paid by employers under this section shall |
15 | be deposited in the Unemployment Compensation Fund. Compensation |
16 | for which charges are relieved under this section shall not be |
17 | used in the calculation of the State adjustment factor under |
18 | section 301.1(e). |
19 | (d) The provisions of this section shall constitute the |
20 | exclusive means by which an employer who makes payments in lieu |
21 | of contributions pursuant to Article X, XI or XII may be excused |
22 | from reimbursing the Unemployment Compensation Fund for |
23 | compensation paid to an individual that is based on wages paid |
24 | by the employer or that portion of the individual's compensation |
25 | determined in accordance with section 1108. |
26 | (e) A group account under section 1109 shall constitute an |
27 | employer for purposes of this section. |
28 | Section 2. Section 302 of the act, amended March 24, 1964 |
29 | (Sp.Sess. P.L.53, No.1), July 6, 1977 (P.L.41, No.22), July 21, |
30 | 1983 (P.L.68, No.30), December 19, 1996 (P.L.1476, No.189) and |
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1 | December 9, 2002 (P.L.1330, No.156), is amended to read: |
2 | Section 302. Establishment and Maintenance of Employer's |
3 | Reserve Accounts.--The department shall establish and maintain |
4 | for each employer a separate employer's reserve account in the |
5 | following manner: |
6 | (a) [(1) Such account shall be credited with all |
7 | contributions paid by such employer for periods subsequent to |
8 | June thirtieth, one thousand nine hundred forty-eight. Such |
9 | account shall be charged with an amount determined by |
10 | multiplying the wages of compensated employes of such employer |
11 | for the twelve month period ended June thirtieth, one thousand |
12 | nine hundred forty-nine, by the state experience heretofore used |
13 | in determining rates of contributions for the year one thousand |
14 | nine hundred forty-nine. Subsequent to January 1, 1984, such] An |
15 | employer's reserve account shall be charged with all |
16 | compensation, including dependents' allowances, paid to each |
17 | individual who received from such employer wage credits |
18 | constituting the base of such compensation, in the proportion |
19 | that such wage credits with such employer bears to the total |
20 | wage credits received by such individual from all employers[: |
21 | Provided, That if the department finds that such individual was |
22 | separated from his most recent work for such employer due to |
23 | being discharged for willful misconduct connected with such |
24 | work, or due to his leaving such work without good cause |
25 | attributable to his employment, or due to his being separated |
26 | from such work under conditions which would result in |
27 | disqualification for benefits under the provisions of section 3 |
28 | or section 402(e.1), thereafter no compensation paid to such |
29 | individual with respect to any week of unemployment occurring |
30 | subsequent to such separation, which is based upon wages paid by |
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1 | such employer with respect to employment prior to such |
2 | separation, shall be charged to such employer's account under |
3 | the provisions of this subsection (a); provided, such employer |
4 | has filed a notice with the department in accordance with its |
5 | rules and regulations and within the time limits prescribed |
6 | therein; and provided if the department finds that such |
7 | individual's unemployment is directly caused by a major natural |
8 | disaster declared by the President pursuant to section 102(1) of |
9 | the Disaster Relief Act of 1970 (P.L.91-606) and such individual |
10 | would have been eligible for disaster unemployment assistance as |
11 | provided in section 240 of that act with respect to such |
12 | unemployment but for the receipt of unemployment compensation, |
13 | no compensation paid to such individual with respect to any week |
14 | of unemployment occurring due to such natural disaster, to a |
15 | maximum of the eight weeks immediately following the President's |
16 | declaration of emergency, shall be charged to the employer's |
17 | account under the provisions of this subsection. |
18 | (2) Notwithstanding the provisions of paragraph (1) of this |
19 | subsection, if the department finds that an individual |
20 | subsequent to separation from his work is engaged in part-time |
21 | work for a base year employer, other than a base year employer |
22 | from whom he has separated, compensation paid to such individual |
23 | with respect to any week of unemployment occurring subsequent to |
24 | such separation and while such part-time work continues without |
25 | material change, shall not be charged to the account of such |
26 | part-time employer; provided, such part-time employer has filed |
27 | a notice with the department in accordance with its rules and |
28 | regulations and within the time limits prescribed therein. |
29 | (2.1) Notwithstanding the provisions of paragraph (1) of |
30 | this subsection, if the department finds that an individual was |
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1 | separated from his most recent work for such employer due to a |
2 | cessation of business of eighteen months or less caused by a |
3 | disaster, compensation paid to such individual with respect to |
4 | any week of unemployment occurring subsequent to such separation |
5 | shall not be charged to the account of such employer; provided, |
6 | such employer has filed a notice with the department in |
7 | accordance with its rules and regulations and within the time |
8 | limits prescribed therein. |
9 | (3) The findings and determinations of the department under |
10 | this subsection (a) shall be subject to appeal in the manner |
11 | provided in this act for appeals from determinations of |
12 | compensation: Provided, That where the individual's eligibility |
13 | for compensation has been finally determined under the |
14 | provisions of Article V of this act, such determination shall |
15 | not be subject to attack in proceedings under this section. |
16 | (4) The reserve account of any employer who pays |
17 | contributions under this section shall not be charged with |
18 | respect to benefits paid to any individual whose base period |
19 | wages include wages for previously uncovered services as defined |
20 | in section 401(g) to the extent that the unemployment insurance |
21 | fund is reimbursed for such benefits pursuant to section 121 of |
22 | Public Law 94-566]. |
23 | (b) Any employer, at any time, may voluntarily pay into the |
24 | Unemployment Compensation Fund an amount in excess of the |
25 | contributions required to be paid under the provisions of this |
26 | act, and such amount shall be forthwith credited to his reserve |
27 | account. His rate of contribution shall be computed or |
28 | recomputed, as the case may be, with such amount included in the |
29 | calculation. To affect such employer's rate of contribution for |
30 | any year, such amount shall be paid not later than thirty days |
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1 | following the mailing of notice of his rate of contribution for |
2 | such year: Provided, That for good cause, such time may be |
3 | extended by the department: And provided further, That such |
4 | amount, when paid as aforesaid, shall not be refunded or used as |
5 | a credit in the payment of contributions in whole or in part. |
6 | In no event shall any such amount be included in the computation |
7 | or recomputation for any year unless it is paid within one |
8 | hundred twenty days after the beginning of such year. |
9 | (c) (1) For the purpose of determining any employer's rate |
10 | of contribution for any year, the phrase "balance in an |
11 | employer's reserve account" as used in sections 301, 301.1 and |
12 | 301.2 of this act shall mean the amount ascertained as of the |
13 | computation date by subtracting the amounts charged to his |
14 | reserve account from the amounts credited thereto including |
15 | voluntary contributions. If, as of the computation date, the |
16 | amounts charged to his reserve account exceed the amounts |
17 | credited by an amount equivalent to more than twenty per centum |
18 | (20%) of his average annual payroll, the employer may elect, |
19 | subject to the provisions of section 301.1(f) of this act to |
20 | have his reserve account balance adjusted to a negative balance |
21 | equal to twenty per centum (20%) of his average annual payroll. |
22 | This subsection as amended shall apply to elections made after |
23 | December 31, 1986. |
24 | (2) Notwithstanding the provisions of section 301.1(f) and |
25 | paragraph (1) of this subsection, for elections made on or after |
26 | January 1, 1984 and before May 1, 1986, if the amounts charged |
27 | to the employer's reserve account exceed the amounts credited by |
28 | an amount equivalent to more than ten per centum (10%) of his |
29 | average annual payroll, the department, after determining his |
30 | Reserve Ratio Factor shall, upon the election of the employer, |
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1 | adjust his reserve account balance to a negative balance equal |
2 | to ten per centum (10%) of his average annual payroll. With |
3 | respect to future adjustments of negative balance accounts, the |
4 | secretary shall, upon the election of the employer, make |
5 | adjustments as follows: |
6 | (i) In relation to adjustments made for the second time |
7 | after January 1, 1984 and before May 1, 1986, if the amounts |
8 | charged to his reserve account exceed the amounts credited by an |
9 | amount equivalent to more than fifteen per centum (15%) of his |
10 | average annual payroll, the department shall, upon the election |
11 | of the employer, adjust the reserve account balance to a |
12 | negative balance equal to fifteen per centum (15%) of his |
13 | average annual payroll. |
14 | (ii) In relation to adjustments made for the third time |
15 | after January 1, 1984 and before May 1, 1986, if the amounts |
16 | charged to his reserve account exceed the amounts credited by an |
17 | amount equivalent to more than twenty per centum (20%) of his |
18 | average annual payroll, the department shall, upon the election |
19 | of the employer, adjust his reserve account balance to a |
20 | negative balance equal to twenty per centum (20%) of his average |
21 | annual payroll. |
22 | (d) The department shall terminate the reserve account of |
23 | any employer who has not paid contributions for a period of four |
24 | consecutive twelve month periods, ending June thirtieth in any |
25 | year. |
26 | (e) Nothing contained in this act shall be construed to |
27 | grant to any employer any claim or right of withdrawal with |
28 | respect to any amount allocated to him from, or paid by him |
29 | into, the Unemployment Compensation Fund, except as provided in |
30 | section three hundred eleven hereof. |
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1 | Section 3. The act is amended by adding a section to read: |
2 | Section 302.1. Relief from Charges.--Notwithstanding any |
3 | other provisions of this act assigning charges for compensation |
4 | paid to employes, the department shall relieve an employer of |
5 | charges for compensation in accordance with this section and |
6 | section 213 of this act. |
7 | (a) Circumstances allowing relief: |
8 | (1) If an individual was separated from his most recent work |
9 | for an employer due to being discharged for willful misconduct |
10 | connected with that work, or due to his leaving that work |
11 | without good cause attributable to his employment, or due to his |
12 | being separated from such work under conditions which would |
13 | result in disqualification for benefits under the provisions of |
14 | section 3 or section 402(e.1), the employer may be relieved of |
15 | charges for compensation paid to the individual with respect to |
16 | any week of unemployment occurring subsequent to such |
17 | separation. Relief from charges under this paragraph terminates |
18 | if the employe returns to work for the employer. |
19 | (2) If an individual's unemployment is directly caused by a |
20 | major natural disaster declared by the President of the United |
21 | States pursuant to section 102(1) of the Disaster Relief Act of |
22 | 1970 (P.L.91-606) and the individual would have been eligible |
23 | for disaster unemployment assistance as provided in section 240 |
24 | of the Disaster Relief Act of 1970 with respect to that |
25 | unemployment but for the receipt of unemployment compensation, |
26 | an employer may be relieved of charges for compensation paid to |
27 | such individual with respect to any week of unemployment |
28 | occurring due to the natural disaster, to a maximum of the eight |
29 | weeks immediately following the declaration of emergency by the |
30 | President of the United States. |
|
1 | (3) If an individual subsequent to separation from his work |
2 | is engaged in part-time work for a base year employer, other |
3 | than a base year employer from whom he has separated, the part- |
4 | time employer may be relieved of charges for compensation paid |
5 | to the individual with respect to any week of unemployment |
6 | occurring subsequent to the separation and while such part-time |
7 | work continues without material change. |
8 | (4) If the department finds that an individual was separated |
9 | from his most recent work for an employer due to a cessation of |
10 | business of eighteen (18) months or less caused by a disaster, |
11 | the employer may be relieved of charges for compensation paid to |
12 | such individual with respect to any week of unemployment |
13 | occurring subsequent to that separation. Relief from charges |
14 | under this paragraph terminates if the employe returns to work |
15 | for the employer. |
16 | (b) Requests for relief from charges: |
17 | (1) Except as provided in subsection (c), in order to be |
18 | granted relief from charges for compensation an employer must |
19 | file a request with the department in the manner provided, and |
20 | containing all information required, by the department's |
21 | regulations. |
22 | (2) If an employer is requesting relief from charges on the |
23 | basis of a separation that occurs on or before the date the |
24 | claimant files an application for benefits or on the basis of |
25 | continuing part-time work, the following shall apply: |
26 | (i) If the request is filed within fifteen (15) days after |
27 | the date of the earliest notice issued by the department under |
28 | section 501(a) indicating that the claimant is eligible under |
29 | section 401(a) and relief is granted, relief will begin with the |
30 | earliest week for which the claimant is eligible for benefits |
|
1 | pursuant to the claimant's application for benefits. |
2 | (ii) If the request is not filed within the time period |
3 | provided in subparagraph (i), relief, if granted by the |
4 | department, will begin with the earliest week ending fifteen |
5 | (15) or more days subsequent to the date the request is filed. |
6 | (3) If an employer is requesting relief from charges on the |
7 | basis of a separation that occurs after the claimant files an |
8 | application for benefits, the following shall apply: |
9 | (i) If the request is filed within fifteen (15) days after |
10 | the date of the earliest notice issued by the department |
11 | indicating that the claimant is claiming benefits subsequent to |
12 | the separation and relief is granted, relief will begin with the |
13 | earliest week for which the claimant is eligible for benefits |
14 | following the last day worked. |
15 | (ii) If the request is not filed within the time period |
16 | provided in subparagraph (i), relief, if granted by the |
17 | department, will begin with the earliest week ending fifteen |
18 | (15) or more days subsequent to the date the request is filed. |
19 | (c) Relief from charges without a request: |
20 | (1) If a claimant is determined ineligible for benefits |
21 | under section 3 or section 402(b), (e) or (e.1) of this act |
22 | pursuant to a notice of determination that has become final, the |
23 | department will grant relief from charges in accordance with |
24 | subsection (a)(1) to the employer from whom the claimant was |
25 | separated, beginning with the earliest week for which the |
26 | claimant is eligible for benefits following the week or weeks |
27 | governed by the notice of determination. |
28 | (2) If a claimant is determined eligible for benefits under |
29 | section 402(b) of this act pursuant to a notice of determination |
30 | that has become final, the department will grant or deny relief |
|
1 | from charges in accordance with subsection (a)(1) to the |
2 | employer from whom the claimant was separated, beginning with |
3 | the earliest week governed by the notice of determination, in |
4 | accordance with the following: |
5 | (i) The department will grant relief from charges if the |
6 | claimant left work for the employer without good cause |
7 | attributable to the claimant's employment. |
8 | (ii) The department will deny relief from charges if the |
9 | claimant left work for the employer with good cause attributable |
10 | to the claimant's employment. |
11 | (3) Relief from charges granted to an employer remains in |
12 | effect for the purpose of benefits paid to the claimant pursuant |
13 | to a subsequent application for benefits if the relief has not |
14 | terminated in accordance with the provisions of this section. |
15 | (d) Employer information: |
16 | (1) An employer that is granted relief from charges on the |
17 | basis of a claimant's separation from employment shall notify |
18 | the department within fifteen (15) days if the claimant returns |
19 | to work for the employer. The employer shall include with the |
20 | notification the claimant's name and social security number, the |
21 | employer's name and account number and the date when |
22 | reemployment commenced. |
23 | (2) An employer that is granted relief from charges on the |
24 | basis of continuing part-time work shall notify the department |
25 | within fifteen (15) days if the employment situation of the |
26 | claimant changes. The employer shall include with the |
27 | notification the claimant's name and social security number and |
28 | the employer's name and account number. |
29 | (e) General provisions: |
30 | (1) Where the individual's eligibility for compensation has |
|
1 | been finally determined under the provisions of Article V of |
2 | this act, such determination shall not be subject to attack in |
3 | proceedings under this section. |
4 | (2) The findings and determinations of the department under |
5 | this section shall be subject to appeal in the manner provided |
6 | in this act for appeals from determinations of compensation. |
7 | Section 4. The act is amended by adding an article to read: |
8 | ARTICLE XIII |
9 | SHARED WORK PROGRAM |
10 | Section 1301. Definitions. |
11 | The following words and phrases when used in this act shall |
12 | have the meanings given to them in this section unless the |
13 | context clearly indicates otherwise: |
14 | "Affected unit." A department, shift or other organizational |
15 | unit of two or more employees that is designated by an employer |
16 | to participate in a shared-work plan. |
17 | "Approved shared-work plan." An employer's shared-work plan |
18 | which meets the requirements of section 1303 and which the |
19 | department approves in writing. |
20 | "Fringe benefit." Health insurance, a retirement benefit |
21 | received under a pension plan, a paid vacation day, a paid |
22 | holiday, sick leave and any other similar employee benefit |
23 | provided by an employer. |
24 | "Participating employee." An employee in the affected unit |
25 | whose hours of work are reduced by the reduction percentage |
26 | under the shared-work plan. |
27 | "Participating employer." An employer who has a shared-work |
28 | plan in effect. |
29 | "Reduction percentage." The percentage by which each |
30 | participating employee's normal weekly hours of work are reduced |
|
1 | under a shared-work plan in accordance with section 1303(b). |
2 | "Shared-work plan." A plan for reducing unemployment under |
3 | which participating employees of an affected unit share the work |
4 | remaining after reduction in their normal weekly hours of work. |
5 | Section 1302. Application to approve plan. |
6 | (a) Requirements.--An employer that meets all of the |
7 | following requirements may apply to the department for approval |
8 | of a shared-work plan: |
9 | (1) The employer has filed all quarterly reports and |
10 | other reports required under this act and has paid all |
11 | contribution, reimbursement, interest and penalty due through |
12 | the date of the employer's application. |
13 | (2) If the employer is contributory, the employer's |
14 | reserve account balance as of the most recent computation |
15 | date preceding the date of the employer's application is a |
16 | positive number. |
17 | (3) The employer has paid wages for the 12 consecutive |
18 | calendar quarters preceding the date of the employer's |
19 | application. |
20 | (b) Application.--An application under this section shall be |
21 | made in the manner prescribed by the department and contain all |
22 | information required by the department, including the following: |
23 | (1) The employer's assurance that it will provide |
24 | reports to the department relating to the operation of its |
25 | shared-work plan at the times and in the manner prescribed by |
26 | the department and containing all information required by the |
27 | department, including the number of hours worked each week by |
28 | participating employees. |
29 | (2) The employer's assurance that it will not hire new |
30 | employees in, or transfer employees to, the affected unit |
|
1 | during the effective period of the shared-work plan. |
2 | (3) The employer's assurance that it will not lay off |
3 | participating employees during the effective period of the |
4 | shared-work plan, or reduce participating employees' hours of |
5 | work by more than the reduction percentage during the |
6 | effective period of the shared-work plan, except in cases of |
7 | holidays, designated vacation periods, equipment maintenance |
8 | or similar circumstances. |
9 | (4) A list of the week or weeks within the requested |
10 | effective period of the plan during which participating |
11 | employees are anticipated to work fewer hours than the number |
12 | of hours determined under section 1303(a)(5) due to |
13 | circumstances included in paragraph (3). |
14 | (5) The employer's certification that the implementation |
15 | of a shared-work plan is in lieu of temporary layoffs that |
16 | would affect at least 10% of the employees in the affected |
17 | unit and would result in an equivalent reduction in work |
18 | hours. |
19 | (6) The employer's assurance that it will abide by all |
20 | terms and conditions of this article. |
21 | (c) Multiple plans.--An employer may apply to the department |
22 | for approval of more than one shared-work plan. |
23 | Section 1303. Plan requirements. |
24 | (a) General rule.--The department may approve a shared-work |
25 | plan only if the plan meets all of the following requirements: |
26 | (1) The shared-work plan applies to one affected unit. |
27 | (2) All employees in the affected unit are participating |
28 | employees, except that the following employees may not be |
29 | participating employees: |
30 | (i) An employee who has been employed in the |
|
1 | affected unit for less than three months prior to the |
2 | date the employer applies for approval of the shared-work |
3 | plan. |
4 | (ii) An employee whose hours of work per week |
5 | determined under paragraph (5) is 40 or more hours. |
6 | (3) There are no fewer than two participating employees, |
7 | determined without regard to corporate officers. |
8 | (4) The participating employees are identified by name |
9 | and Social Security number. |
10 | (5) The number of hours a participating employee will |
11 | work each week during the effective period of the plan is |
12 | determined by the following formula: |
13 | employee's normal weekly hours of |
14 | work x (100% - reduction percentage) |
15 | (6) As a result of a decrease in the number of hours |
16 | worked by each participating employee, there is a |
17 | corresponding reduction in wages. |
18 | (7) If any participating employee is covered by a |
19 | collective bargaining agreement, the plan is approved in |
20 | writing by the collective bargaining representative. |
21 | (8) The plan does not affect the fringe benefits of any |
22 | participating employee not covered by a collective bargaining |
23 | agreement. |
24 | (9) The effective period of the plan is not more than 52 |
25 | consecutive weeks. |
26 | (10) The effective period of the plan combined with |
27 | effective periods of the participating employer's prior plans |
28 | does not equal more than 104 weeks out of a 156-week period. |
29 | (11) The reduction percentage satisfies the requirements |
30 | of subsection (b). |
|
1 | (b) Reduction percentage.--The reduction percentage under an |
2 | approved shared-work plan shall meet all of the following |
3 | requirements: |
4 | (1) The reduction percentage shall be no less than 20% |
5 | and no more than 40%. |
6 | (2) The reduction percentage shall be the same for all |
7 | participating employees. |
8 | (3) The reduction percentage shall not change during the |
9 | period of the shared-work plan unless the plan is modified in |
10 | accordance with section 1308. |
11 | Section 1304. Approval or disapproval of shared-work plan. |
12 | The department shall approve or disapprove a shared-work plan |
13 | no later than 15 days after the date the employer's shared-work |
14 | plan application that meets the requirements of section 1302(b) |
15 | is received by the department. The department's decision shall |
16 | be made in writing and, if the shared-work plan is disapproved, |
17 | shall include the reasons for the disapproval. |
18 | Section 1305. Effective period of plan. |
19 | (a) Number of weeks.--A shared-work plan is effective for |
20 | the number of consecutive weeks indicated in the employer's |
21 | application, or a lesser number of weeks as approved by the |
22 | department, unless sooner terminated in accordance with section |
23 | 1308. |
24 | (b) Start date.--The effective period of the shared-work |
25 | plan shall begin with the first calendar week following the date |
26 | on which the department approves the plan. |
27 | Section 1306. Criteria for compensation. |
28 | (a) General rule.--Compensation shall be payable to a |
29 | participating employee for a week within the effective period of |
30 | an approved shared-work plan during which the employee works the |
|
1 | number of hours determined under section 1303(a)(5) for the |
2 | participating employer on the same terms, in the same amount and |
3 | subject to the same conditions that would apply to the |
4 | participating employee without regard to this article, except as |
5 | follows: |
6 | (1) A participating employee shall not be required to be |
7 | unemployed within the meaning of section 4(u) or file claims |
8 | for compensation under section 401(c). |
9 | (2) Notwithstanding section 404(d)(1), a participating |
10 | employee shall be paid compensation in an amount equal to the |
11 | product of his weekly benefit rate and the reduction |
12 | percentage, rounded to the next lower whole dollar amount. |
13 | (3) The department shall not deny compensation to a |
14 | participating employee for any week during the effective |
15 | period of the shared-work plan by reason of the application |
16 | of any provision of this act relating to active search for |
17 | work or refusal to apply for or accept work other than work |
18 | offered by the participating employer. |
19 | (4) A participating employee satisfies the requirements |
20 | of section 401(d)(1) if the employee is able to work and is |
21 | available for the employee's normal weekly hours of work with |
22 | the participating employer. |
23 | (b) Equivalent remuneration.--For purposes of subsection |
24 | (a), if a participating employee works fewer hours than the |
25 | number of hours determined under section 1303(a)(5) for the |
26 | participating employer during a week within the effective period |
27 | of the approved shared-work plan, but receives remuneration |
28 | equal to remuneration the employer would have received if the |
29 | employee had worked the number of hours determined under section |
30 | 1303(a)(5), the employee will be deemed to have worked the |
|
1 | number of hours determined under section 1303(a)(5) during that |
2 | week. |
3 | (c) Inapplicability of article.--A participating employee's |
4 | eligibility for compensation for a week within the effective |
5 | period of an approved shared-work plan shall be determined |
6 | without regard to this article under any of the following |
7 | circumstances: |
8 | (1) The employee works fewer hours than the number of |
9 | hours determined under section 1303(a)(5) for the |
10 | participating employer during the week and subsection (b) |
11 | does not apply. |
12 | (2) The employee works more hours than the number of |
13 | hours determined under section 1303(a)(5) for the |
14 | participating employer during the week. |
15 | (3) The employee receives remuneration for the week from |
16 | the participating employer for hours in excess of the number |
17 | of hours determined under section 1303(a)(5). |
18 | Section 1307. Participating employer responsibilities. |
19 | (a) Filing claims.--The department shall establish a |
20 | schedule of consecutive two-week periods within the effective |
21 | period of the shared work plan. The department may, as |
22 | necessary, include one-week periods in the schedule and revise |
23 | the schedule. At the end of each scheduled period, the |
24 | participating employer shall file claims for compensation for |
25 | the week or weeks within the period on behalf of the |
26 | participating employees. The claims shall be filed no later than |
27 | the last day of the week immediately following the period, |
28 | unless an extension of time is granted by the department for |
29 | good cause. The claims shall be filed in the manner prescribed |
30 | by the department and shall contain all information required by |
|
1 | the department to determine the eligibility of the participating |
2 | employees for compensation. |
3 | (b) Benefit charges.--Notwithstanding any other provision of |
4 | this act, compensation paid to participating employees for weeks |
5 | within the effective period of an approved shared-work plan will |
6 | be charged to the participating employer. |
7 | Section 1308. Modification of plan. |
8 | An employer may apply to the department for approval to |
9 | modify a shared-work plan to meet changed conditions. The |
10 | department shall reevaluate the plan and may approve the |
11 | modified plan if it meets the requirements for approval under |
12 | section 1304. If the modifications cause the shared-work plan to |
13 | fail to meet the requirements for approval, the department shall |
14 | disapprove the proposed modifications. |
15 | Section 1309. Termination of plan. |
16 | (a) General rule.--The secretary may terminate a shared-work |
17 | plan for good cause. |
18 | (b) Good cause.--For purposes of subsection (a), good cause |
19 | includes any of the following: |
20 | (1) The plan is not being executed according to its |
21 | approved terms and conditions. |
22 | (2) The participating employer fails to comply with the |
23 | assurances given in the plan. |
24 | (3) The participating employer or a participating |
25 | employee violates any criteria on which approval of the plan |
26 | was based. |
27 | (c) Termination by employer.--The employer may terminate a |
28 | shared-work plan by written notice to the department. |
29 | Section 1310. Department discretion. |
30 | The decision to approve or disapprove a shared-work plan, to |
|
1 | approve or disapprove a modification of a shared-work plan or to |
2 | terminate a shared-work plan will be made within the |
3 | department's discretion. Such decisions are not subject to the |
4 | appeal provisions of Article V. |
5 | Section 1311. Publication of notice. |
6 | The department shall transmit to the Legislative Reference |
7 | Bureau for publication in the Pennsylvania Bulletin notice that |
8 | the provisions of this article have been approved by the |
9 | Department of Labor as required under section 3304(a)(4)(E) of |
10 | the Federal Unemployment Tax Act (Public Law 86-778, 26 U.S.C. § |
11 | 3304(a)(4)(E)) and section 303(a)(5) of the Social Security Act |
12 | (49 Stat. 620, 42 U.S.C. § 503(a)(5)). |
13 | Section 1312. Severability. |
14 | Notwithstanding any other section of this act, if any |
15 | provision or provisions of this article cause the Department of |
16 | Labor to withhold approval of this article as required under |
17 | section 3304(a)(4)(E) of the Federal Unemployment Tax Act |
18 | (Public Law 86-778, 26 U.S.C. 3304(a)(4)(E)) and section 303(a) |
19 | (5) of the Social Security Act (49 Stat.620, 42 U.S.C. § 503(a) |
20 | (5)), the department is authorized to permanently suspend the |
21 | provision or provisions. |
22 | Section 1313. Expiration. |
23 | This article shall expire five years from its effective date. |
24 | Section 5. This act shall take effect as follows: |
25 | (1) The amendment or addition of sections 213, 302 and |
26 | 302.1 of the act shall take effect July 1, 2011, or |
27 | immediately, whichever occurs later. |
28 | (2) The addition of Article XIII of the act shall take |
29 | effect upon publication in the Pennsylvania Bulletin of the |
30 | notice required under section 1311 of the act or July 1, |
|
1 | 2010, whichever occurs later. |
2 | (3) The remainder of this act shall take effect |
3 | immediately. |
|
