PRINTER'S NO. 309
No. 302 Session of 1999
INTRODUCED BY BELFANTI, LEH, EACHUS, DRUCE, TIGUE, BUXTON,
DeWEESE, DEMPSEY, M. COHEN, YOUNGBLOOD, ROONEY, SAINATO,
YEWCIC, CORRIGAN, CURRY, ROSS, BELARDI, GRUITZA, MELIO,
WOJNAROSKI, WALKO, CALTAGIRONE, TRICH, SHANER, HALUSKA,
PLATTS, SURRA, STERN, KELLER, JOSEPHS, C. WILLIAMS, PETRARCA,
HORSEY, PISTELLA, MANDERINO, DeLUCA, RAMOS, BEBKO-JONES,
PESCI, STURLA, ROHRER, MARSICO, BROWNE, GEORGE, GORDNER,
HERSHEY, SANTONI, MUNDY, THOMAS, SAYLOR, READSHAW, TRELLO,
STABACK, PRESTON, DALEY, GIGLIOTTI, COLAFELLA, YUDICHAK,
WASHINGTON, STEELMAN AND SERAFINI, FEBRUARY 3, 1999
REFERRED TO COMMITTEE ON LABOR RELATIONS, FEBRUARY 3, 1999
AN ACT
1 Amending the act of July 14, 1961 (P.L.637, No.329), entitled
2 "An act relating to the payment of wages or compensation for
3 labor or services; providing for regular pay days; conferring
4 powers and duties upon the Department of Labor and Industry,
5 including powers and duties with respect to the civil
6 collection of wages; providing civil and criminal penalties
7 for violations of the act; providing for their collection and
8 disposition and providing for additional civil damages,"
9 providing for duty of successor employer to pay back wages;
10 and further providing for enforcement.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The act of July 14, 1961 (P.L.637, No.329), known
14 as the Wage Payment and Collection Law, is amended by adding a
15 section to read:
16 Section 6.1. Duty to Pay Back Wages at the Sale of a
17 Business.--(a) Any employer who transfers the title of his
18 business or sells, in bulk, fifty-one percent (51%) or more of
1 the assets of his business is obligated to pay in full all wages
2 due and owing to any employes affected by the transfer of the
3 title or the sale of said assets as of the date of transfer of
4 the title or the sale of said assets of the business on or
5 before the date of the transfer or sale. This obligation shall
6 be discharged by one or all of the following as may be required:
7 (1) full payment by certified check to an employe to whom
8 back pay is owed;
9 (2) the placement of the amount of required moneys in an
10 escrow account held by an attorney or certified public
11 accountant approved by the department; or
12 (3) a legally binding agreement for the assumption of the
13 liability by the purchaser or transferee. The discharge of this
14 obligation shall be evidenced by a certificate issued by the
15 department or a certified agent thereof. The certificate shall
16 be recorded with the sales or transfer transaction, as well as
17 any set-offs or counter-claims against wages covered by this
18 section claimed by the employer. The employer shall give the
19 department ten days' written notice of the transfer or sale
20 prior to the completion of the transfer or sale of the property.
21 (b) Any wages not paid as required by subsection (a) shall
22 be a statutory lien upon the title and assets of the business
23 transferred or sold, and an enforceable claim under this act.
24 The lien in the amount of any wages not paid as required by
25 subsection (a) shall attach to the title and assets of the
26 business prior to its transfer or sale and shall transfer with
27 the title and assets of the business and become the liability of
28 a successor purchaser or transferee, unless discharged as
29 required in subsection (a).
30 (c) As used in this section, the term "certified agent"
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1 means an attorney, a certified public accountant or other
2 individual approved by the department in accordance with
3 regulation.
4 Section 2. Section 8 of the act, amended July 14, 1977
5 (P.L.82, No.30), is amended to read:
6 Section 8. Enforcement.--(a) The Secretary of Labor and
7 Industry shall have the duty, but not the exclusive right, to
8 enforce and administer the provisions of this act, to
9 investigate any alleged violations of this act and to institute
10 prosecutions and actions as provided hereunder. Nothing in this
11 act shall authorize the secretary to initiate a civil action for
12 unpaid wages which are subject to disposition under grievance
13 and arbitration procedures of a collective bargaining agreement.
14 (b) The Department of Labor and Industry shall have the
15 power to make rules and regulations for the administration of
16 this act.
17 (c) Every employer shall keep open to inspection by the
18 secretary or his authorized representative, all payroll records
19 or other records or documents relative to the enforcement of
20 this act. Such inspection may be made by the secretary or his
21 authorized representative at any reasonable time. Every employer
22 shall permit the secretary or any authorized representative to
23 interrogate any employe in the place of employment and during
24 work hours with respect to such records or documents. Where such
25 records are maintained at a central record keeping office
26 outside of the Commonwealth, such records shall be made
27 available for inspection at the place of employment within seven
28 calendar days following verbal or written notice from the
29 secretary or his authorized representative. Where a microfilm or
30 any other method is authorized for record keeping purposes, the
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1 employer shall make available to the secretary or his authorized
2 representative, the equipment which is necessary to facilitate
3 review of the records.
4 (d) If a company files a bankruptcy petition under 11 U.S.C.
5 Ch. 11 (relating to reorganization), the company shall file with
6 the court a bond or other assurance prescribed under 11 U.S.C.
7 (relating to bankruptcy) relating to the payment of wages of
8 salaried and nonsalaried employes of the company. The department
9 shall monitor payments or wages by a company which has filed a
10 petition under 11 U.S.C. Ch. 11.
11 Section 3. This act shall take effect in 180 days.
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