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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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| REFERRED TO LABOR AND INDUSTRY, FEBRUARY 1, 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. |
17 | The General Assembly of the Commonwealth of Pennsylvania |
18 | hereby enacts as follows: |
19 | Section 1. The act of December 5, 1936 (2nd Sp.Sess., 1937 |
20 | P.L.2897, No.1), known as the Unemployment Compensation Law, is |
21 | amended by adding an article to read: |
22 | ARTICLE XIII |
23 | SHARED WORK PROGRAM |
24 | Section 1301. Definitions. |
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1 | The following words and phrases when used in this act shall |
2 | have the meanings given to them in this section unless the |
3 | context clearly indicates otherwise: |
4 | "Affected unit." A department, shift or other organizational |
5 | unit of two or more employees that is designated by an employer |
6 | to participate in a shared-work plan. |
7 | "Approved shared-work plan" or "approved plan." An |
8 | employer's shared-work plan which meets the requirements of |
9 | section 1303 and which the department approves in writing. |
10 | "Fringe benefit." Health insurance, a retirement benefit |
11 | received under a pension plan, a paid vacation day, a paid |
12 | holiday, sick leave and any other similar employee benefit |
13 | provided by an employer. |
14 | "Participating employee." An employee in the affected unit |
15 | whose hours of work are reduced by the reduction percentage |
16 | under the shared-work plan. |
17 | "Participating employer." An employer who has a shared-work |
18 | plan in effect. |
19 | "Reduction percentage." The percentage by which each |
20 | participating employee's weekly hours of work are reduced under |
21 | a shared-work plan in accordance with section 1303(b). |
22 | "Shared-work plan." A plan for reducing unemployment under |
23 | which participating employees of an affected unit share the work |
24 | remaining after reduction in their normal weekly hours of work. |
25 | Section 1302. Application to approve plan. |
26 | (a) Requirements.--An employer that meets all of the |
27 | following requirements may apply to the department for approval |
28 | of a shared-work plan: |
29 | (1) The employer has filed all quarterly reports and |
30 | other reports required under this act and has paid all |
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1 | contribution, reimbursement, interest and penalty due through |
2 | the date of the employer's application. |
3 | (2) If the employer is contributory, the employer's |
4 | reserve account balance as of the most recent computation |
5 | date preceding the date of the employer's application is a |
6 | positive number. |
7 | (3) The employer has paid wages for the 12 consecutive |
8 | calendar quarters preceding the date of the employer's |
9 | application. |
10 | (b) Application.--An application under this section shall be |
11 | made in the manner prescribed by the department and contain all |
12 | information required by the department, including the following: |
13 | (1) The employer's assurance that it will provide |
14 | reports to the department relating to the operation of its |
15 | shared-work plan at the times and in the manner prescribed by |
16 | the department and containing all information required by the |
17 | department, including the number of hours worked each week by |
18 | participating employees. |
19 | (2) The employer's assurance that it will not hire new |
20 | employees in, or transfer employees to, the affected unit |
21 | during the effective period of the shared-work plan. |
22 | (3) The employer's assurance that it will not lay off |
23 | participating employees during the effective period of the |
24 | shared-work plan, or reduce participating employees' hours of |
25 | work by more than the reduction percentage during the |
26 | effective period of the shared-work plan, except in cases of |
27 | illness, holidays, vacation or similar circumstances. |
28 | (4) The employer's certification that the implementation |
29 | of a shared-work plan is in lieu of temporary layoffs that |
30 | would affect at least 10% of the employees in the affected |
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1 | unit and would result in an equivalent reduction in work |
2 | hours. |
3 | (c) Multiple plans.--An employer may apply to the department |
4 | for approval of more than one shared-work plan. |
5 | Section 1303. Plan requirements. |
6 | (a) General rule.--The department may approve a shared-work |
7 | plan only if the plan meets all of the following requirements: |
8 | (1) The shared-work plan applies to one affected unit. |
9 | (2) All employees in the affected unit are participating |
10 | employees, except that the following employees may not be |
11 | participating employees: |
12 | (i) An employee who has been employed in the |
13 | affected unit for less than three months prior to the |
14 | date the employer applies for approval of the shared-work |
15 | plan. |
16 | (ii) An employee whose hours of work per week |
17 | determined under paragraph (5) is 40 or more hours. |
18 | (3) There are no fewer than two participating employees. |
19 | (4) The participating employees are identified by name |
20 | and Social Security number. |
21 | (5) The number of hours a participating employee will |
22 | work each week during the effective period of the plan is |
23 | determined by the following formula: |
24 | employee's normal weekly hours of |
25 | work x (100% - reduction percentage) |
26 | (6) As a result of a decrease in the number of hours |
27 | worked by each participating employee, there is a |
28 | corresponding reduction in wages. |
29 | (7) If any participating employee is covered by a |
30 | collective bargaining agreement, the plan is approved in |
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1 | writing by the collective bargaining representative. |
2 | (8) The plan does not affect the fringe benefits of any |
3 | participating employee not covered by a collective bargaining |
4 | agreement. |
5 | (9) The plan does not serve as a subsidy to seasonal |
6 | employers during the off-season or as a subsidy to employers |
7 | who traditionally use part-time employees. |
8 | (10) The effective period of the plan is not more than |
9 | 52 consecutive weeks. |
10 | (11) The effective period of the plan combined with |
11 | effective periods of the participating employer's prior plans |
12 | does not equal more than 104 weeks out of a 156-week period. |
13 | (12) The reduction percentage satisfies the requirements |
14 | of subsection(b). |
15 | (b) Reduction percentage.--The reduction percentage under an |
16 | approved shared-work plan shall meet all of the following |
17 | requirements: |
18 | (1) The reduction percentage shall be no less than 20% |
19 | and no more than 40%. |
20 | (2) The reduction percentage shall be the same for all |
21 | participating employees. |
22 | (3) The reduction percentage shall not change during the |
23 | period of the shared-work plan unless the plan is modified in |
24 | accordance with section 1307. |
25 | Section 1304. Approval or disapproval of shared-work plan. |
26 | The department shall approve or disapprove a shared-work plan |
27 | no later than 15 days after the date the employer's shared-work |
28 | plan application that meets the requirements of section 1302(b) |
29 | is received by the department. The department's decision shall |
30 | be made in writing and, if the shared-work plan is disapproved, |
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1 | shall include the reasons for the disapproval. |
2 | Section 1305. Effective period of plan. |
3 | (a) Number of weeks.--A shared-work plan is effective for |
4 | the number of consecutive weeks indicated in the employer's |
5 | application, or a lesser number of weeks as approved by the |
6 | department, unless sooner terminated in accordance with section |
7 | 1308. |
8 | (b) Start date.--The effective period of the shared-work |
9 | plan shall begin with the first calendar week following the date |
10 | on which the department approves the plan. |
11 | Section 1306. Criteria for compensation. |
12 | (a) General rule.--Compensation shall be payable to a |
13 | participating employee for a week within the effective period of |
14 | an approved shared-work plan during which the employee works the |
15 | number of hours determined under section 1303(a)(5) on the same |
16 | terms, in the same amount and subject to the same conditions |
17 | that would apply to the participating employee without regard to |
18 | this article, except as provided for in subsection (b). |
19 | (b) Additional criteria.-- |
20 | (1) A participating employee shall not be required to be |
21 | unemployed. |
22 | (2) Section 404(d)(1) shall be applicable as if it |
23 | provided as follows: A participating employee shall be paid |
24 | compensation in an amount equal to his weekly benefit rate |
25 | less the total of: |
26 | (i) an amount equal to the product of his weekly |
27 | benefit rate and the reduction percentage, rounded to the |
28 | next lower whole dollar amount; and |
29 | (ii) remuneration earned from an employer other than |
30 | the participating employer and remuneration from self- |
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1 | employment that is not disqualifying under section |
2 | 402(h), except that remuneration earned from employment |
3 | or self-employment that commenced before the |
4 | participating employer applied for approval of the |
5 | shared-work plan will not be deducted if the preexisting |
6 | employment or self-employment does not increase during |
7 | the effective period of the plan. |
8 | (3) The department shall not deny compensation to a |
9 | participating employee for any week during the effective |
10 | period of the shared-work plan by reason of the application |
11 | of any provision of this act relating to active search for |
12 | work or refusal to apply for or accept work other than work |
13 | offered by the participating employer. |
14 | (c) Express work hours.--A participating employee's |
15 | eligibility for compensation for a week within the effective |
16 | period of an approved shared-work plan during which the employee |
17 | works more hours than the number of hours determined under |
18 | section 1303(a)(5) shall be determined without regard to this |
19 | article. |
20 | (d) Number of hours.--For purposes of this section, the |
21 | following shall apply: |
22 | (1) To the extent that a participating employee works |
23 | fewer hours during a week than the number of hours determined |
24 | under section 1303(a)(5) by reason of illness, holidays, |
25 | vacation or the like, the employee will be deemed to have |
26 | worked the number of hours determined under section 1303(a) |
27 | (5). |
28 | (2) To the extent that a participating employee receives |
29 | remuneration for a week from the participating employer for |
30 | hours in excess of the number of hours determined under |
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1 | section 1303(a)(5), the employee will be deemed to have |
2 | worked more hours than the number of hours determined under |
3 | section 1303(a)(5) for that week. |
4 | Section 1307. Modification of plan. |
5 | An employer may apply to the department for approval to |
6 | modify a shared-work plan to meet changed conditions. The |
7 | department shall reevaluate the plan and may approve the |
8 | modified plan if it meets the requirements for approval under |
9 | section 1304. If the modifications cause the shared-work plan to |
10 | fail to meet the requirements for approval, the department shall |
11 | disapprove the proposed modifications. |
12 | Section 1308. Termination of plan. |
13 | (a) General rule.--The secretary may terminate a shared-work |
14 | plan for good cause. |
15 | (b) Good cause.--For purposes of subsection (a), good cause |
16 | includes any of the following: |
17 | (1) The plan is not being executed according to its |
18 | approved terms and conditions. |
19 | (2) The participating employer fails to comply with the |
20 | assurances given in the plan. |
21 | (3) The participating employer or a participating |
22 | employee violates any criteria on which approval of the plan |
23 | was based. |
24 | (c) Termination by employer.--The employer may terminate a |
25 | shared-work plan by written notice to the department. |
26 | Section 1309. Department discretion. |
27 | The decision to approve or disapprove a shared-work plan, to |
28 | approve or disapprove a modification of a shared-work plan or to |
29 | terminate a shared-work plan will be made within the |
30 | department's discretion. Such decisions are not subject to the |
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1 | appeal provisions of Article V. |
2 | Section 1310. Publication of notice. |
3 | The department shall transmit to the Legislative Reference |
4 | Bureau for publication in the Pennsylvania Bulletin notice that |
5 | the provision of this article have been approved by the |
6 | Department of Labor as required under section 3304(a)(4)(E) of |
7 | the Federal Unemployment Tax Act (Public Law 86-778, 26 U.S.C. § |
8 | 3304(a)(4)(E)) and section 303(a)(5) of the Social Security Act |
9 | (49 Stat. 620, 42 U.S.C. § 503(a)(5)). |
10 | Section 1311. Expiration. |
11 | This article shall expire five years from the effective date |
12 | of this section. |
13 | Section 2. This act shall take effect upon publication of |
14 | the notice under section 1310 of the act, or July 1, 2010, |
15 | whichever is later. |
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