Bill Text: PA SB789 | 2011-2012 | Regular Session | Introduced

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Bill Title: Further providing for definitions and for establishment and maintenance of employer's reserve accounts; providing for relief from charges; further providing for qualifications required to secure compensation, for ineligibility for compensation and for rate and amount of compensation; providing for effect of severance pay on benefits; and further providing for rules of procedure.

Spectrum: Partisan Bill (Republican 5-0)

Status: (Introduced - Dead) 2011-03-09 - Referred to LABOR AND INDUSTRY [SB789 Detail]

Download: Pennsylvania-2011-SB789-Introduced.html

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PRINTER'S NO. 820
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 789 Session of2011
INTRODUCED BY FOLMER, WAUGH, YAW, ALLOWAY AND MENSCH, MARCH 9, 2011
REFERRED TO LABOR AND INDUSTRY, MARCH 9, 2011
AN ACT
Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
P.L.2897, No.1), entitled "An act establishing a system of
unemployment compensation to be administered by the
Department of Labor and Industry and its existing and newly
created agencies with personnel (with certain exceptions)
selected on a civil service basis; requiring employers to
keep records and make reports, and certain employers to pay
contributions based on payrolls to provide moneys for the
payment of compensation to certain unemployed persons;
providing procedure and administrative details for the
determination, payment and collection of such contributions
and the payment of such compensation; providing for
cooperation with the Federal Government and its agencies;
creating certain special funds in the custody of the State
Treasurer; and prescribing penalties," further providing for
definitions and for establishment and maintenance of
employer's reserve accounts; providing for relief from
charges; further providing for qualifications required to
secure compensation, for ineligibility for compensation and
for rate and amount of compensation; providing for effect of
severance pay on benefits; and further providing for rules of
procedure.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 4(g.1) of the act of December 5, 1936
(2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment
Compensation Law, added July 10, 1980 (P.L.521, No.108), is
amended to read:
Section 4. Definitions.--The following words and phrases, as
used in this act, shall have the following meanings, unless the
context clearly requires otherwise.
* * *
(g.1) "Credit week" means any calendar week in an
individual's base year with respect to which he was paid in
employment as defined in this act, remuneration of not less than
[fifty dollars ($50)] 16 times the minimum hourly wage required
by the act of January 17, 1968 (P.L.11, No.5), known as The
Minimum Wage Act of 1968. Only one credit week can be
established with respect to any one calendar week.
* * *
Section 2. Section 302 of the act, amended or added March
24, 1964 (Sp.Sess., P.L.53, No.1), July 6, 1977 (P.L.41, No.22),
July 21, 1983 (P.L.68, No.30), December 19, 1996 (P.L.1476,
No.189) and December 9, 2002 (P.L.1330, No.156), is amended to
read:
Section 302. Establishment and Maintenance of Employer's
Reserve Accounts.--The department shall establish and maintain
for each employer a separate employer's reserve account in the
following manner:
(a) [(1) Such account shall be credited with all
contributions paid by such employer for periods subsequent to
June thirtieth, one thousand nine hundred forty-eight. Such
account shall be charged with an amount determined by
multiplying the wages of compensated employes of such employer
for the twelve month period ended June thirtieth, one thousand
nine hundred forty-nine, by the state experience heretofore used
in determining rates of contributions for the year one thousand
nine hundred forty-nine. Subsequent to January 1, 1984, such] An
20110SB0789PN0820 - 2 -
employer's account shall be charged with all compensation,
including dependents' allowances, paid to each individual who
received from such employer wage credits constituting the base
of such compensation, in the proportion that such wage credits
with such employer bears to the total wage credits received by
such individual from all employers[: Provided, That if the
department finds that such individual was separated from his
most recent work for such employer due to being discharged for
[willful] misconduct connected with such work, or due to his
leaving such work without good cause attributable to his
employment, or due to his being separated from such work under
conditions which would result in disqualification for benefits
under the provisions of section 3 or section 402(e.1),
thereafter no compensation paid to such individual with respect
to any week of unemployment occurring subsequent to such
separation, which is based upon wages paid by such employer with
respect to employment prior to such separation, shall be charged
to such employer's account under the provisions of this
subsection (a); provided, such employer has filed a notice with
the department in accordance with its rules and regulations and
within the time limits prescribed therein; and provided if the
department finds that such individual's unemployment is directly
caused by a major natural disaster declared by the President
pursuant to section 102(1) of the Disaster Relief Act of 1970
(P.L.91-606) and such individual would have been eligible for
disaster unemployment assistance as provided in section 240 of
that act with respect to such unemployment but for the receipt
of unemployment compensation, no compensation paid to such
individual with respect to any week of unemployment occurring
due to such natural disaster, to a maximum of the eight weeks
20110SB0789PN0820 - 3 -
immediately following the President's declaration of emergency,
shall be charged to the employer's account under the provisions
of this subsection.
(2) Notwithstanding the provisions of paragraph (1) of this
subsection, if the department finds that an individual
subsequent to separation from his work is engaged in part-time
work for a base year employer, other than a base year employer
from whom he has separated, compensation paid to such individual
with respect to any week of unemployment occurring subsequent to
such separation and while such part-time work continues without
material change, shall not be charged to the account of such
part-time employer; provided, such part-time employer has filed
a notice with the department in accordance with its rules and
regulations and within the time limits prescribed therein.
(2.1) Notwithstanding the provisions of paragraph (1) of
this subsection, if the department finds that an individual was
separated from his most recent work for such employer due to a
cessation of business of eighteen months or less caused by a
disaster, compensation paid to such individual with respect to
any week of unemployment occurring subsequent to such separation
shall not be charged to the account of such employer; provided,
such employer has filed a notice with the department in
accordance with its rules and regulations and within the time
limits prescribed therein.
(3) The findings and determinations of the department under
this subsection (a) shall be subject to appeal in the manner
provided in this act for appeals from determinations of
compensation: Provided, That where the individual's eligibility
for compensation has been finally determined under the
provisions of Article V of this act, such determination shall
20110SB0789PN0820 - 4 -
not be subject to attack in proceedings under this section.
(4) The reserve account of any employer who pays
contributions under this section shall not be charged with
respect to benefits paid to any individual whose base period
wages include wages for previously uncovered services as defined
in section 401(g) to the extent that the unemployment insurance
fund is reimbursed for such benefits pursuant to section 121 of
Public Law 94-566].
(b) Any employer, at any time, may voluntarily pay into the
Unemployment Compensation Fund an amount in excess of the
contributions required to be paid under the provisions of this
act, and such amount shall be forthwith credited to his reserve
account. His rate of contribution shall be computed or
recomputed, as the case may be, with such amount included in the
calculation. To affect such employer's rate of contribution for
any year, such amount shall be paid not later than thirty days
following the mailing of notice of his rate of contribution for
such year: Provided, That for good cause, such time may be
extended by the department: And provided further, That such
amount, when paid as aforesaid, shall not be refunded or used as
a credit in the payment of contributions in whole or in part.
In no event shall any such amount be included in the computation
or recomputation for any year unless it is paid within one
hundred twenty days after the beginning of such year.
(c) (1) For the purpose of determining any employer's rate
of contribution for any year, the phrase "balance in an
employer's reserve account" as used in sections 301, 301.1 and
301.2 of this act shall mean the amount ascertained as of the
computation date by subtracting the amounts charged to his
reserve account from the amounts credited thereto including
20110SB0789PN0820 - 5 -
voluntary contributions. If, as of the computation date, the
amounts charged to his reserve account exceed the amounts
credited by an amount equivalent to more than twenty per centum
(20%) of his average annual payroll, the employer may elect,
subject to the provisions of section 301.1(f) of this act to
have his reserve account balance adjusted to a negative balance
equal to twenty per centum (20%) of his average annual payroll.
This subsection as amended shall apply to elections made after
December 31, 1986.
(2) Notwithstanding the provisions of section 301.1(f) and
paragraph (1) of this subsection, for elections made on or after
January 1, 1984 and before May 1, 1986, if the amounts charged
to the employer's reserve account exceed the amounts credited by
an amount equivalent to more than ten per centum (10%) of his
average annual payroll, the department, after determining his
Reserve Ratio Factor shall, upon the election of the employer,
adjust his reserve account balance to a negative balance equal
to ten per centum (10%) of his average annual payroll. With
respect to future adjustments of negative balance accounts, the
secretary shall, upon the election of the employer, make
adjustments as follows:
(i) In relation to adjustments made for the second time
after January 1, 1984 and before May 1, 1986, if the amounts
charged to his reserve account exceed the amounts credited by an
amount equivalent to more than fifteen per centum (15%) of his
average annual payroll, the department shall, upon the election
of the employer, adjust the reserve account balance to a
negative balance equal to fifteen per centum (15%) of his
average annual payroll.
(ii) In relation to adjustments made for the third time
20110SB0789PN0820 - 6 -
after January 1, 1984 and before May 1, 1986, if the amounts
charged to his reserve account exceed the amounts credited by an
amount equivalent to more than twenty per centum (20%) of his
average annual payroll, the department shall, upon the election
of the employer, adjust his reserve account balance to a
negative balance equal to twenty per centum (20%) of his average
annual payroll.
(d) The department shall terminate the reserve account of
any employer who has not paid contributions for a period of four
consecutive twelve month periods, ending June thirtieth in any
year.
(e) Nothing contained in this act shall be construed to
grant to any employer any claim or right of withdrawal with
respect to any amount allocated to him from, or paid by him
into, the Unemployment Compensation Fund, except as provided in
section three hundred eleven hereof.
Section 3. The act is amended by adding a section to read:
Section 302.1. Relief from Charges.--Notwithstanding any
other provisions of this act assigning charges for compensation
paid to employes, the department shall relieve an employer of
charges for compensation in accordance with this section and
section 213 of this act.
(a) Circumstances allowing relief:
(1) If an individual was separated from his most recent work
for an employer due to being discharged for misconduct connected
with that work, or due to his leaving that work without good
cause attributable to his employment, or due to his being
separated from such work under conditions which would result in
disqualification for benefits under the provisions of section 3
or section 402(e.1), the employer shall be relieved of charges
20110SB0789PN0820 - 7 -
for compensation paid to the individual with respect to any week
of unemployment occurring subsequent to such separation. Relief
from charges under this paragraph terminates if the employe
returns to work for the employer.
(2) If an individual's unemployment is directly caused by a
major natural disaster declared by the President of the United
States pursuant to section 102(1) of the Disaster Relief Act of
1970 (P.L.91-606) and the individual would have been eligible
for disaster unemployment assistance as provided in section 240
of the Disaster Relief Act of 1970 with respect to that
unemployment but for the receipt of unemployment compensation,
an employer shall be relieved of charges for compensation paid
to such individual with respect to any week of unemployment
occurring due to the natural disaster, to a maximum of the eight
weeks immediately following the declaration of emergency by the
President of the United States.
(3) If an individual subsequent to separation from his work
is engaged in part-time work for a base year employer, other
than a base year employer from whom he has separated, the part-
time employer shall be relieved of charges for compensation paid
to the individual with respect to any week of unemployment
occurring subsequent to the separation and while such part-time
work continues without material change.
(4) If the department finds that an individual was separated
from his most recent work for an employer due to a cessation of
business of eighteen months or less caused by a disaster, the
employer may be relieved of charges for compensation paid to
such individual with respect to any week of unemployment
occurring subsequent to that separation. Relief from charges
under this paragraph terminates if the employe returns to work
20110SB0789PN0820 - 8 -
for the employer.
(b) Requests for relief from charges:
(1) Except as provided in subsection (c), in order to be
granted relief from charges for compensation an employer must
file a request with the department in the manner provided, and
containing all information required, by the department's
regulations.
(2) If an employer is requesting relief from charges on the
basis of a separation that occurs on or before the date the
claimant files an application for benefits or on the basis of
continuing part-time work, the following shall apply:
(i) If the request is filed within thirty (30) days after
the date of the earliest notice issued by the department under
section 501(a) indicating that the claimant is eligible under
section 401(a) and relief is granted, relief will begin with the
earliest week for which the claimant is eligible for benefits
pursuant to the claimant's application for benefits.
(ii) If the request is not filed within the time period
provided in subparagraph (i), relief, if granted by the
department, will begin with the earliest week ending fifteen
(15) or more days subsequent to the date the request is filed.
(3) If an employer is requesting relief from charges on the
basis of a separation that occurs after the claimant files an
application for benefits, the following shall apply:
(i) If the request is filed within thirty (30) days after
the date of the earliest notice issued by the department
indicating that the claimant is claiming benefits subsequent to
the separation and relief is granted, relief will begin with the
earliest week for which the claimant is eligible for benefits
following the last day worked.
20110SB0789PN0820 - 9 -
(ii) If the request is not filed within the time period
provided in subparagraph (i), relief, if granted by the
department, will begin with the earliest week ending fifteen
(15) or more days subsequent to the date the request is filed.
(c) Relief from charges without a request:
(1) If a claimant is determined ineligible for benefits
under section 3 or section 402(b), (e) or (e.1) pursuant to a
notice of determination that has become final, the department
will grant relief from charges in accordance with subsection (a)
(1) to the employer from whom the claimant was separated,
beginning with the earliest week for which the claimant is
eligible for benefits following the week or weeks governed by
the notice of determination.
(2) If a claimant is determined eligible for benefits under
section 402(b) pursuant to a notice of determination that has
become final, the department will grant or deny relief from
charges in accordance with subsection (a)(1) to the employer
from whom the claimant was separated, beginning with the
earliest week governed by the notice of determination, in
accordance with the following:
(i) The department will grant relief from charges if the
claimant left work for the employer without good cause
attributable to the claimant's employment.
(ii) The department will deny relief from charges if the
claimant left work for the employer with good cause attributable
to the claimant's employment.
(3) Relief from charges granted to an employer remains in
effect for the purpose of benefits paid to the claimant pursuant
to a subsequent application for benefits if the relief has not
terminated in accordance with the provisions of this section.
20110SB0789PN0820 - 10 -
(d) Employer information:
(1) An employer that is granted relief from charges on the
basis of a claimant's separation from employment shall notify
the department within fifteen (15) days if the claimant returns
to work for the employer. The employer shall include with the
notification the claimant's name and Social Security number, the
employer's name and account number and the date when
reemployment commenced.
(2) An employer that is granted relief from charges on the
basis of continuing part-time work shall notify the department
within fifteen (15) days if the employment situation of the
claimant changes. The employer shall include with the
notification the claimant's name and Social Security number and
the employer's name and account number.
(e) General provisions:
(1) Where the individual's eligibility for compensation has
been finally determined under the provisions of Article V, such
determination shall not be subject to attack in proceedings
under this section.
(2) The findings and determinations of the department under
this section shall be subject to appeal in the manner provided
in this act for appeals from determinations of compensation.
Section 4. Section 401(b) and (f) of the act, amended July
9, 1976 (P.L.842, No.147) and December 9, 2002 (P.L.1330,
No.156), are amended to read:
Section 401. Qualifications Required to Secure
Compensation.--Compensation shall be payable to any employe who
is or becomes unemployed, and who--
* * *
(b) [Has registered for work at, and thereafter continued to
20110SB0789PN0820 - 11 -
report to an employment office in accordance with such
regulations as the secretary may prescribe, except that the
secretary may by regulation waive or alter either or both of the
requirements of this clause as to individuals attached to
regular jobs and as to such other types of cases or situations
with respect to which he finds that compliance with such
requirements would be oppressive or would be inconsistent with
the purposes of the act: Provided, however, That no such
regulation shall conflict with section four hundred and one (c)
of this act;] Is:
(1) Actively engaged in a systematic and sustained effort to
obtain work. An individual shall be treated as actively engaged
in a systematic and sustained effort to obtain work only if the
individual provides tangible evidence to the secretary that the
individual has engaged in such effort in each week for which the
individual claimed unemployment compensation. The requirements
for active search shall be established by the department and
shall include, at a minimum, the following:
(i) Registration by a claimant for employment search
services offered by the Pennsylvania CareerLink system within
fourteen days after initial application for benefits.
(ii) Posting a resume on the system's database, unless the
claimant is seeking work for an occupation determined by the
secretary to be one for which resumes are not commonly used.
(iii) Applying for positions similar to positions previously
held by the claimant that offer wages that are comparable to
wages for such positions in the local labor market and which are
within a forty-five minute commuting distance from the
individual's place of residence.
(2) Available for suitable work. For purposes of this
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paragraph:
(i) Except as provided in subparagraph (ii), "suitable work"
means work which is within the individual's capabilities, except
that:
(A) If the individual furnishes evidence satisfactory to the
secretary that the individual has been notified by an
individual's base period or most recent separating employer of a
return to work date within forty-five days after the last date
worked, the individual may meet the requirement that he or she
be available for work by checking in with the employer for work
as prescribed by the employer during the forty-five-day period.
(B) If the individual's prospects for obtaining work in the
individual's customary occupation within a reasonably short
period are good and the individual is obligated under the terms
of an agreement with an employer or group of employers to be
available for work with that employer or employers, the
secretary may permit the individual to meet availability
requirements for work by complying with the requirements
prescribed under such agreement and submitting supporting
documentation to the secretary.
(ii) No individual otherwise qualified to receive
unemployment compensation shall lose the right to compensation
by reason of a refusal to accept new work if:
(A) as a condition of being so employed the individual would
be required to join a company union, or to resign from or
refrain from joining any bona fide labor organization;
(B) the position offered is vacant due directly to strike,
lockout or other labor dispute; or
(C) the wages, hours or other conditions of the work offered
are substantially less favorable to the individual than those
20110SB0789PN0820 - 13 -
prevailing for similar work in the locality.
(iii) If the secretary determines that an individual has
failed to be actively engaged in a systematic and sustained
effort to obtain work, failed to be available for suitable work
or refused an offer of suitable work under this subsection, the
secretary shall determine that the individual shall be
ineligible to receive unemployment compensation for any week
beginning with the week following the week in which the failure
occurred and until such individual has been employed during four
weeks which begin after such failure and the total remuneration
earned by the individual for being so employed is not less than
four times the individual's average weekly benefit amount. The
Pennsylvania CareerLink system shall provide documentation, as
the secretary deems appropriate, to the Pennsylvania
Unemployment Compensation Service Center system so the system
can conduct the necessary cross reference checks. The
requirements of this paragraph do not apply to any week in which
the claimant is in training approved under the Trade Act of 1974
(Public Law 93-618, 19 U.S.C. § 2101 et seq.) or any week in
which the claimant is required to participate in reemployment
services under section 402(j).
* * *
(f) Has earned, subsequent to his separation from work under
circumstances which are disqualifying under the provisions of
subsections 402(b), 402(e), 402(e.1) and 402(h) of this act,
remuneration for services in an amount equal to or in excess of
[six (6)] ten (10) times his weekly benefit rate [irrespective
of whether or not such services were] in "employment" as defined
in this act[.] and earned wages for "employment" as defined in
this act, in ten (10) separate "weeks." The provisions of this
20110SB0789PN0820 - 14 -
subsection shall not apply to a suspension of work by an
individual pursuant to a leave of absence granted by his last
employer, provided such individual has made a reasonable effort
to return to work with such employer upon the expiration of his
leave of absence.
* * *
Section 5. Section 402(b) and (e) of the act, amended August
24, 1953 (P.L.1397, No.396) and October 22, 1981 (P.L.301,
No.106), are amended to read:
Section 402. Ineligibility for Compensation.--An employe
shall be ineligible for compensation for any week--
* * *
(b) In which his unemployment is due to voluntarily leaving
work without cause of a necessitous and compelling nature
attributable to his employment, irrespective of whether or not
such work is in "employment" as defined in this act: Provided,
That a voluntary leaving work because of a work-related
disability if the employer is able to provide other suitable
work, shall be deemed not a cause of a necessitous and
compelling nature attributable to his employment: And provided
further, That no employe shall be deemed to be ineligible under
this subsection where as a condition of continuing in employment
such employe would be required to join or remain a member of a
company union or to resign from or refrain from joining any bona
fide labor organization, or to accept wages, hours or conditions
of employment not desired by a majority of the employes in the
establishment or the occupation, or would be denied the right of
collective bargaining under generally prevailing conditions, and
that in determining whether or not an employe has left his work
voluntarily without cause of a necessitous and compelling nature
20110SB0789PN0820 - 15 -
attributable to his employment, the department shall give
consideration to the same factors, insofar as they are
applicable, provided, with respect to the determination of
suitable work under section four (t): And provided further, That
the provisions of this subsection shall not apply in the event
of a stoppage of work which exists because of a labor dispute
within the meaning of subsection (d). Provided further, That no
otherwise eligible claimant shall be denied benefits for any
week in which his unemployment is due to exercising the option
of accepting a layoff, from an available position pursuant to a
labor-management contract agreement, or pursuant to an
established employer plan, program or policy: Provided further,
That a claimant shall not be disqualified for voluntarily
leaving work, which is not suitable employment to enter training
approved under section 236(a)(1) of the Trade Act of 1974. For
purposes of this subsection the term "suitable employment" means
with respect to a claimant, work of a substantially equal or
higher skill level than the claimant's past "adversely affected
employment" (as defined in section 247 of the Trade Act of
1974), and wages for such work at not less than eighty per
centum of the worker's "average weekly wage" (as defined in
section 247 of the Trade Act of 1974).
* * *
(e) In which his unemployment is due to his discharge or
temporary suspension from work for [willful] misconduct
connected with his work, irrespective of whether or not such
work is "employment" as defined in this act[; and]. For purposes
of this subsection, the term "misconduct" shall include the
violation of any reasonable workplace rule or work-related
government regulation or law of which the employe was aware;
20110SB0789PN0820 - 16 -
failure to maintain a valid license or certificate that has been
issued by a Federal or Commonwealth agency or political
subdivision and which is a requirement of employment; the
deliberate damage to property of the employer or another employe
or the theft of an employer's or another employe's property;
reporting to work in possession of or under the influence of
drugs or alcohol; threatening a coworker or supervisor with
physical harm or threatening to harm the interests of the
employer; disregard of supervisor's reasonable directives or
orders and acts of negligence or an act of negligence which
indicates substantial disregard for employer's interests.
* * *
Section 6. Section 404 introductory paragraph, (c) and (e)
(2), amended July 21, 1983 (P.L.68, No.30) and October 19, 1988
(P.L.818, No.109), are amended to read:
Section 404. Rate and Amount of Compensation.--Compensation
shall be paid to each eligible employe in accordance with the
following provisions of this section except that compensation
payable with respect to weeks ending in benefit years which
begin prior to the first day of January [1989] 2012 shall be
paid on the basis of the provisions of this section in effect at
the beginning of such benefit years.
* * *
(c) [Any] The total amount of benefits to which an otherwise
eligible employe who has base year wages in an amount equal to,
or in excess, of the amount of qualifying wages appearing in
Part C of the Table Specified for the Determination of Rate and
Amount of Benefits on the line on which in Part B there appears
his weekly benefit rate, as determined under subsection (a) of
this section, shall be entitled during his benefit year to the
20110SB0789PN0820 - 17 -
amount appearing in Part D on said line multiplied by the number
of qualifying credit weeks during his base year, up to a maximum
of twenty-six (26): Provided he had eighteen (18) or more
"credit weeks" during his base year [or Part E provided he had
sixteen (16) or seventeen (17) "credit weeks" during his base
year]. Notwithstanding any other provision of this act, any
employe with less than [sixteen (16)] eighteen (18) "credit
weeks" during the employe's base year shall be ineligible to
receive any amount of compensation.
* * *
(e) * * *
(2) (i) The Table Specified for the Determination of Rate
and Amount of Benefits shall be extended or contracted annually,
automatically by regulations promulgated by the secretary in
accordance with the following procedure: for calendar year one
thousand nine hundred seventy-two and for all subsequent
calendar years, to a point where the maximum weekly benefit rate
equals sixty-six and two-thirds per centum of the average weekly
wage for the twelve-month period ending June 30 preceding each
calendar year. If the maximum weekly benefit rate is not a
multiple of one dollar ($1), it shall be [increased by one
dollar ($1) and then] rounded to the next lower multiple of one
dollar ($1): Provided, however, That effective with benefit
years beginning the first Sunday at least thirty days after the
effective date of this amendatory act, the per centum stated in
this paragraph for establishing the maximum weekly benefit rate
shall be sixty-two and two-thirds per centum for the remainder
of calendar year one thousand nine hundred seventy-four, sixty-
four and two-thirds per centum for the calendar year one
thousand nine hundred seventy-five, and sixty-six and two-thirds
20110SB0789PN0820 - 18 -
per centum for the calendar year one thousand nine hundred
seventy-six and for all subsequent calendar years.
The Table Specified for the Determination of Rate and Amount
of Benefits as so extended or contracted shall be effective only
for those claimants whose benefit years begin on or after the
first day of January of such calendar year.
(ii) For the purpose of determining the maximum weekly
benefit rate, the Pennsylvania average weekly wage in covered
employment shall be computed on the basis of the total wages
reported (irrespective of the limit on the amount of wages
subject to contributions) for the twelve-month period ending
June 30 and this amount shall be divided by the average monthly
number of covered workers (determined by dividing the total
covered employment reported for the same fiscal year by twelve)
to determine the average annual wage. The average annual wage
thus obtained shall be divided by fifty-two and the average
weekly wage thus determined rounded to the nearest cent.
* * *
Section 7. The act is amended by adding a section to read:
Section 404.2. Effect of Severance Pay on Benefits.--(a) An
employe who has been determined to be eligible for benefits and
who receives severance pay upon termination from his employer
shall have the benefit year adjusted to start of the date of
expiration of the period when fifty per centum (50%) of
severance pay ends. Severance pay shall be attributed to the
day, days, week or weeks immediately following the employe's
termination.
(b) The number of days or weeks to which severance pay is
attributed is determined by dividing the total amount of
severance pay by the regular full-time daily or weekly wage of
20110SB0789PN0820 - 19 -
the claimant.
(c) The amount of severance pay attributed to each day or
week equals the regular full-time daily or weekly wage of the
claimant.
(d) When the attribution of severance pay is made on the
basis of the number of days, the pay shall be attributed to the
customary working days in the calendar week.
(e) An employe shall not be subject to the requirements of
section 401(b) and (d)(1) during the period the benefit year
starts.
(f) For the purposes of this section, the term "severance
pay" shall mean one or more payments made by an employer to an
employe on account of separation from the service of the
employer, regardless of whether the employer is legally bound by
contract, statute or otherwise to make such payments. The term
does not include payments for pension, retirement or accrued
leave or payments of supplemental unemployment benefits.
Section 8. Section 505 of the act, amended April 23, 1942
(Sp. Sess., P.L.60, No.23), is amended to read:
Section 505. Rules of Procedure.--The manner in which
appeals shall be taken, the reports thereon required from the
department, the claimant and employers, and the conduct of
hearings and appeals, shall be in accordance with rules of
procedure prescribed by the board whether or not such rules
conform to common law or statutory rules of evidence and other
technical rules of procedure. Rules established by the board
shall permit either party to a hearing to testify via telephone,
without regard to distance of hearing location from either
party.
When the same or substantially similar evidence is relevant
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and material to the matter in issue in applications and claims
filed by more than one individual or in multiple applications
and claims filed by a single individual the same time and place
for considering each such application and claim may be fixed,
hearings thereon jointly conducted, a single record of the
proceedings made and evidence introduced with respect to any
application or claim considered as introduced with respect to
all of such applications or claims: Provided, That in the
judgment of the board or referee having jurisdiction of the
proceeding such consideration will not be prejudicial to any
party.
Section 9. This act shall apply as follows:
(1) The amendment of section 401(b) of the act shall
apply to initial claims filed on or after July 1, 2011.
(2) The amendment of sections 4(g.1) and 401(f) of the
act shall apply to initial claims filed on or after January
1, 2012.
(3) The amendment of sections 302 and 402(b) and (e) of
the act are applicable to initial claims filed on or after
January 1, 2012.
(4) The addition of section 302.1 of the act shall apply
to initial claims filed on or after January 1, 2012.
(5) The addition of section 404.2 of the act shall apply
to claims filed on or after January 1, 2013.
Section 10. This act shall take effect as follows:
(1) This section shall take effect immediately.
(2) The amendment of section 404 introductory paragraph
of the act shall take effect January 1, 2013.
(3) The remainder of this act shall take effect in 60
days.
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