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| PRIOR PRINTER'S NO. 3121 | PRINTER'S NO. 3387 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| HOUSE BILL |
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| INTRODUCED BY BRADFORD, REICHLEY, BELFANTI, GERGELY, BURNS, BROWN, COHEN, DePASQUALE, DONATUCCI, FRANKEL, FREEMAN, GALLOWAY, GIBBONS, GOODMAN, HARKINS, KORTZ, MATZIE, McGEEHAN, MELIO, MURPHY, READSHAW, K. SMITH, SWANGER, R. TAYLOR, YOUNGBLOOD AND MANN, JANUARY 25, 2010 |
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| AS REPORTED FROM COMMITTEE ON LABOR RELATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, MARCH 17, 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 |
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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 normal weekly hours of work are reduced | <-- |
22 | under 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 designated vacation periods, | <-- |
29 | equipment maintenance or similar circumstances. |
30 | (4) A list of the week or weeks within the requested | <-- |
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1 | effective period of the plan during which participating |
2 | employees are anticipated to work fewer hours than the number |
3 | of hours determined under section 1303(a)(5) due to |
4 | circumstances included in paragraph (3). |
5 | (4) (5) The employer's certification that the | <-- |
6 | implementation of a shared-work plan is in lieu of temporary |
7 | layoffs that would affect at least 10% of the employees in |
8 | the affected unit and would result in an equivalent reduction |
9 | in work hours. |
10 | (6) The employer's assurance that it will abide by all | <-- |
11 | terms and conditions of this article. |
12 | (c) Multiple plans.--An employer may apply to the department |
13 | for approval of more than one shared-work plan. |
14 | Section 1303. Plan requirements. |
15 | (a) General rule.--The department may approve a shared-work |
16 | plan only if the plan meets all of the following requirements: |
17 | (1) The shared-work plan applies to one affected unit. |
18 | (2) All employees in the affected unit are participating |
19 | employees, except that the following employees may not be |
20 | participating employees: |
21 | (i) An employee who has been employed in the |
22 | affected unit for less than three months prior to the |
23 | date the employer applies for approval of the shared-work |
24 | plan. |
25 | (ii) An employee whose hours of work per week |
26 | determined under paragraph (5) is 40 or more hours. |
27 | (3) There are no fewer than two participating employees, | <-- |
28 | determined without regard to corporate officers. |
29 | (4) The participating employees are identified by name |
30 | and Social Security number. |
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1 | (5) The number of hours a participating employee will |
2 | work each week during the effective period of the plan is |
3 | determined by the following formula: |
4 | employee's normal weekly hours of |
5 | work x (100% - reduction percentage) |
6 | (6) As a result of a decrease in the number of hours |
7 | worked by each participating employee, there is a |
8 | corresponding reduction in wages. |
9 | (7) If any participating employee is covered by a |
10 | collective bargaining agreement, the plan is approved in |
11 | writing by the collective bargaining representative. |
12 | (8) The plan does not affect the fringe benefits of any |
13 | participating employee not covered by a collective bargaining |
14 | agreement. |
15 | (9) The plan does not serve as a subsidy to seasonal | <-- |
16 | employers during the off-season or as a subsidy to employers |
17 | who traditionally use part-time employees. |
18 | (10) (9) The effective period of the plan is not more | <-- |
19 | than 52 consecutive weeks. |
20 | (11) (10) The effective period of the plan combined with | <-- |
21 | effective periods of the participating employer's prior plans |
22 | does not equal more than 104 weeks out of a 156-week period. |
23 | (12) (11) The reduction percentage satisfies the | <-- |
24 | requirements of subsection(b). |
25 | (b) Reduction percentage.--The reduction percentage under an |
26 | approved shared-work plan shall meet all of the following |
27 | requirements: |
28 | (1) The reduction percentage shall be no less than 20% |
29 | and no more than 40%. |
30 | (2) The reduction percentage shall be the same for all |
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1 | participating employees. |
2 | (3) The reduction percentage shall not change during the |
3 | period of the shared-work plan unless the plan is modified in |
4 | accordance with section 1307 1308. | <-- |
5 | Section 1304. Approval or disapproval of shared-work plan. |
6 | The department shall approve or disapprove a shared-work plan |
7 | no later than 15 days after the date the employer's shared-work |
8 | plan application that meets the requirements of section 1302(b) |
9 | is received by the department. The department's decision shall |
10 | be made in writing and, if the shared-work plan is disapproved, |
11 | shall include the reasons for the disapproval. |
12 | Section 1305. Effective period of plan. |
13 | (a) Number of weeks.--A shared-work plan is effective for |
14 | the number of consecutive weeks indicated in the employer's |
15 | application, or a lesser number of weeks as approved by the |
16 | department, unless sooner terminated in accordance with section |
17 | 1308. |
18 | (b) Start date.--The effective period of the shared-work |
19 | plan shall begin with the first calendar week following the date |
20 | on which the department approves the plan. |
21 | Section 1306. Criteria for compensation. |
22 | (a) General rule.--Compensation shall be payable to a |
23 | participating employee for a week within the effective period of |
24 | an approved shared-work plan during which the employee works the |
25 | number of hours determined under section 1303(a)(5) for the | <-- |
26 | participating employer on the same terms, in the same amount and |
27 | subject to the same conditions that would apply to the |
28 | participating employee without regard to this article, except as |
29 | provided for in subsection (b). | <-- |
30 | (b) Additional criteria.--follows: | <-- |
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1 | (1) A participating employee shall not be required to be |
2 | unemployed within the meaning of section 4(u) or file claims | <-- |
3 | for compensation under section 401(c). |
4 | (2) Section 404(d)(1) shall be applicable as if it |
5 | provided as follows: A participating employee shall be paid |
6 | compensation in an amount equal to the product of his weekly | <-- |
7 | benefit rate less the total of: | <-- |
8 | (i) an amount equal to the product of his weekly |
9 | benefit rate and the reduction percentage, rounded to the |
10 | next lower whole dollar amount; and |
11 | (ii) remuneration earned from an employer other than |
12 | the participating employer and remuneration from self- |
13 | employment that is not disqualifying under section |
14 | 402(h), except that remuneration earned from employment |
15 | or self-employment that commenced before the |
16 | participating employer applied for approval of the |
17 | shared-work plan will not be deducted if the preexisting |
18 | employment or self-employment does not increase during |
19 | the effective period of the plan. and the reduction | <-- |
20 | percentage, rounded to the next lower whole dollar |
21 | amount. |
22 | (3) The department shall not deny compensation to a |
23 | participating employee for any week during the effective |
24 | period of the shared-work plan by reason of the application |
25 | of any provision of this act relating to active search for |
26 | work or refusal to apply for or accept work other than work |
27 | offered by the participating employer. |
28 | (4) A participating employee satisfies the requirements | <-- |
29 | of section 401(d)(1) if the employee is able to work and is |
30 | available for the employee's normal weekly hours of work with |
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1 | the participating employer. |
2 | (b) Equivalent remuneration.--For purposes of subsection |
3 | (a), if a participating employee works fewer hours than the |
4 | number of hours determined under section 1303(a)(5) for the |
5 | participating employer during a week within the effective period |
6 | of the approved shared-work plan, but receives remuneration as |
7 | if the employee had worked the number of hours determined under |
8 | section 1303(a)(5), the employee will be deemed to have worked |
9 | the number of hours determined under section 1303(a)(5) during |
10 | that week. |
11 | (c) Express work hours Inapplicability of article.--A | <-- |
12 | participating employee's eligibility for compensation for a week |
13 | within the effective period of an approved shared-work plan |
14 | during which the employee works more hours than the number of | <-- |
15 | hours determined under section 1303(a)(5) shall be determined |
16 | without regard to this article. | <-- |
17 | (d) Number of hours.--For purposes of this section, the |
18 | following shall apply under any of the following circumstances: | <-- |
19 | (1) To the extent that a participating The employee | <-- |
20 | works fewer hours during a week than the number of hours | <-- |
21 | determined under section 1303(a)(5) by reason of illness, | <-- |
22 | holidays, vacation or the like, the employee will be deemed |
23 | to have worked the number of hours determined under section |
24 | 1303(a)(5). |
25 | (2) To the extent that a participating for the | <-- |
26 | participating employer during the week and subsection (b) |
27 | does not apply. |
28 | (2) The employee works more hours than the number of |
29 | hours determined under section 1303(a)(5) for the |
30 | participating employer during the week. |
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1 | (3) The employee receives remuneration for a the week | <-- |
2 | from the participating employer for hours in excess of the |
3 | number of hours determined under section 1303(a)(5), the | <-- |
4 | employee will be deemed to have worked more hours than the |
5 | number of hours determined under section 1303(a)(5) for that |
6 | week. |
7 | Section 1307. Participating employer responsibilities. | <-- |
8 | (a) Filing claims.--The department shall establish a |
9 | schedule of consecutive two-week periods within the effective |
10 | period of the shared work plan. The department may, as |
11 | necessary, include one-week periods in the schedule and revise |
12 | the schedule. At the end of each scheduled period, the |
13 | participating employer shall file claims for compensation for |
14 | the week or weeks within the period on behalf of the |
15 | participating employees. The claims shall be filed no later than |
16 | the last day of the week immediately following the period, |
17 | unless an extension of time is granted by the department for |
18 | good cause. The claims shall be filed in the manner prescribed |
19 | by the department and shall contain all information required by |
20 | the department to determine the eligibility of the participating |
21 | employees for compensation. |
22 | (b) Benefit charges.--Notwithstanding any other provision of |
23 | this act, compensation paid to participating employees for weeks |
24 | within the effective period of an approved shared-work plan will |
25 | be charged to the participating employer. |
26 | Section 1307 1308. Modification of plan. | <-- |
27 | An employer may apply to the department for approval to |
28 | modify a shared-work plan to meet changed conditions. The |
29 | department shall reevaluate the plan and may approve the |
30 | modified plan if it meets the requirements for approval under |
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1 | section 1304. If the modifications cause the shared-work plan to |
2 | fail to meet the requirements for approval, the department shall |
3 | disapprove the proposed modifications. |
4 | Section 1308 1309. Termination of plan. | <-- |
5 | (a) General rule.--The secretary may terminate a shared-work |
6 | plan for good cause. |
7 | (b) Good cause.--For purposes of subsection (a), good cause |
8 | includes any of the following: |
9 | (1) The plan is not being executed according to its |
10 | approved terms and conditions. |
11 | (2) The participating employer fails to comply with the |
12 | assurances given in the plan. |
13 | (3) The participating employer or a participating |
14 | employee violates any criteria on which approval of the plan |
15 | was based. |
16 | (c) Termination by employer.--The employer may terminate a |
17 | shared-work plan by written notice to the department. |
18 | Section 1309 1310. Department discretion. | <-- |
19 | The decision to approve or disapprove a shared-work plan, to |
20 | approve or disapprove a modification of a shared-work plan or to |
21 | terminate a shared-work plan will be made within the |
22 | department's discretion. Such decisions are not subject to the |
23 | appeal provisions of Article V. |
24 | Section 1310 1311. Publication of notice. | <-- |
25 | The department shall transmit to the Legislative Reference |
26 | Bureau for publication in the Pennsylvania Bulletin notice that |
27 | the provision provisions of this article have been approved by | <-- |
28 | the Department of Labor as required under section 3304(a)(4)(E) |
29 | of the Federal Unemployment Tax Act (Public Law 86-778, 26 |
30 | U.S.C. § 3304(a)(4)(E)) and section 303(a)(5) of the Social |
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1 | Security Act (49 Stat. 620, 42 U.S.C. § 503(a)(5)). |
2 | Section 1311 1312. Severability. | <-- |
3 | Notwithstanding any other section of this act, if any |
4 | provision or provisions of this article cause the Department of |
5 | Labor to withhold approval of this article as required under |
6 | section 3304(a)(4)(E)) of the Federal Unemployment Tax Act (26 |
7 | U.S.C. 3304(a)(4)(E) and section 303(a)(5)) of the Social |
8 | Security Act, (42 U.S.C. § 503(a)(5)), the department is |
9 | authorized to permanently suspend the provision or provisions. |
10 | Section 1312 1313. Expiration. | <-- |
11 | This article shall expire five years from its effective date. |
12 | Section 2. This act shall take effect when notice is |
13 | published in the Pennsylvania Bulletin under section 1310 1311 | <-- |
14 | of the act, or July 1, 2010, whichever is later. |
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