|"UNEMPLOYMENT COMPENSATION LAW" (1937 P.L.)
Act of Dec. 5, 1936, Special Session 2, P.L. 2897, No. 1
Special Session No. 2 of 1936
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.
TABLE OF CONTENTS
Section 1. Enacting Clause.
Section 2. Short Title.
Section 3. Declaration of Public Policy.
Section 4. Definitions.
Section 5. Constitutional Construction.
ADMINISTRATION OF ACT
Section 201. General Powers and Duties of Department.
Section 202. Personnel and Employment Offices.
Section 203. Unemployment Compensation Board of Review.
Section 204. Advisory Council (Repealed).
Section 204.1. State Unemployment Compensation Advisory Council.
Section 205. Stabilization of Employment; Partial and Seasonal Unemployments.
Section 206. Records of and Reports by Employers.
Section 207. Cooperation with Social Security Board and Other Agencies.
Section 208. Civil Service; Selection of Personnel; Additional Duties of Secretary and Board (Repealed).
Section 208.1. Civil Service Appointment of Personnel (Repealed).
Section 209. Obsolete Files, Records, etc.
Section 210. Reciprocal Arrangements with Foreign Governments.
Section 211. Fund Analysis (Repealed).
Section 212. Referral to Employment Offices.
Section 213. Relief from Charges for Certain Employers.
Section 214. Representation in Proceedings.
CONTRIBUTIONS BY EMPLOYERS AND EMPLOYES
Section 301. Contributions by Employers and Employees; Successors-In-Interest; Appeals.
Section 301.1. Determination and Contribution Rate; Experience Rating.
Section 301.2. Additional Contributions.
Section 301.3. Additional Contributions. (Repealed)
Section 301.4. Contributions by Employes.
Section 301.5. Surcharge.
Section 301.6. Additional Contribution for Interest and Debt Service.
Section 301.7. Trigger Determinations.
Section 301.8. Trigger Rate Redeterminations.
Section 301.9. Service and Infrastructure Improvement Fund.
Section 302. Establishment and Maintenance of Employer's Reserve Accounts.
Section 302.1. Relief from Charges.
Section 303. (Repealed).
Section 304. Reports by Employers; Assessments.
Section 305. Payment of Contributions; Jeopardy Assessments.
Section 306. Fraction of a Cent.
Section 307. Interstate Commerce.
Section 308. Interest on Past Due Contributions.
Section 308.1. Contributions to be Liens; Entry and Enforcement Thereof.
Section 308.2. Purchase of Property at Judicial Sale; Disposal.
Section 308.3. Transfer of Assets; Liability of Purchase.
Section 309. Collection of Contributions and Interest; Injunctions.
Section 309.1. Compromises.
Section 309.2. Limitations Upon Enforcement of Payment of Contributions, Interest and Penalties.
Section 310. Priorities under Legal Dissolutions and Distributions.
Section 311. Refunds and Adjustments.
Section 312. Reciprocal Agreements.
Section 313. Dishonored Payments.
Section 314. Shortfall Reduction (Repealed).
Section 315. Registration and other reports.
Section 401. Qualifications Required to Secure Compensation.
Section 402. Ineligibility for Compensation.
Section 402.1. Benefits Based on Service for Educational Institutions.
Section 402.2. Benefits Based on Service by Professional Athletes.
Section 402.3. Eligibility of Aliens.
Section 402.4. Eligibility of Officers of a Corporation Deemed to be Self-Employed Persons.
Section 402.5. Eligibility of Seasonal Workers in fruit and vegetable food processing.
Section 402.6. Ineligibility of Incarcerated Employe.
Section 403. Payment of Compensation Due Decreased Claimants.
Section 404. Rate and Amount of Compensation.
Section 404.1. Extension of Benefits; Benefit Charges.
Section 405. Duties of Employers.
Section 406. Nonliability of Commonwealth.
Section 407. Compensation to Members of the Armed Forces (Repealed).
Section 408. Limitation on the Validity of Claims.
EXTENDED BENEFITS PROGRAM
Section 401-A. Definitions.
Section 402-A. Effect of State Law Provisions Relating to Regular Benefits on Claims for, and the Payment of, Extended Benefits.
Section 403-A. Eligibility Requirements for Extended Benefits and Shareable Regular Benefits.
Section 404-A. Weekly Extended Benefit Amount.
Section 405-A. Total Extended Benefit Amount.
Section 406-A. Beginning and Termination of Extended Benefit Period.
Section 407-A. Benefit Charges.
Section 408-A. Incorporation of Federal Law.
DETERMINATION OF COMPENSATION; APPEALS;
Section 501. Determination of Compensation Appeals.
Section 502. Decision of Referee; Further Appeals and Reviews.
Section 503. Disqualifications to Participate in Hearings.
Section 504. Powers of Board Over Claims.
Section 505. Rules of Procedure.
Section 505.1. Place of Hearing.
Section 506. Power to Administer Oaths; Subpoenas.
Section 507. Procedure where Summons or Subpoenas Disobeyed.
Section 508. Protection Against Self-Incrimination.
Section 509. Finality of Decisions.
Section 510. Appeals to Superior Court (Repealed).
Section 510.1. Appeal to Commonwealth Court (Repealed).
Section 511. Exceptions and Bond Not Necessary; No Supersedes to Be Granted (Repealed).
Section 512. Final Order of Board.
UNEMPLOYMENT COMPENSATION FUND
AND ADMINISTRATION FUND
Section 601. Unemployment Compensation Fund.
Section 601.1. Special Administration Fund.
Section 601.2. Debt Service Fund.
Section 601.3. Unemployment Compensation Trigger Reserve Account.
Section 601.4. Job Training Fund.
Section 601.5. Reemployment Fund.
Section 602. Administration Fund.
Section 602-A. Audit of Funds.
Section 602.1. Reimbursement of Funds.
Section 602.2. Moneys Received from Social Security Act or Wagner-Peyser Act.
Section 602.3. Money Credited under Section 903 of the Federal Social Security Act (42 U.S.C. § 1103)
Section 603. State Treasurer as Custodian.
Section 604. Budgetary Provisions Not Applicable.
Section 605. Management of Funds upon Discontinuance of Unemployment Trust Fund.
Section 606. Transfer of Funds to Railroad Unemployment Insurance Account (Repealed).
Section 607. Moneys Advanced Under Title XII of the Social Security Act (Repealed).
Section 608. Extended or Supplemental Benefits under Federal Law.
Section 609. Conformity with Federal Standards.
PROTECTION OF RIGHTS AND COMPENSATION
Section 701. Certain Agreements Void; Penalty.
Section 702. Limitation of Fees.
Section 703. No Assignment of Compensation; Exemptions.
Section 703.1. Child Support Intercept of Unemployment Compensation.
Section 703.2. Voluntary Federal Income Tax Withholding.
Section 704. Deductions from Back Wage Awards.
Section 705. Recoupment and/or setoff Unemployment compensation Benefits.
Section 801. False Statements and Representations to Obtain or Increase Compensation.
Section 802. False Statements and Representations to Prevent or Reduce Compensation.
Section 802.1. Monetary penalties.
Section 803. Violation of Act and Rules and Regulations.
Section 804. Recovery and Recoupment of Compensation.
Section 805. Periodic Spot Checks.
SAVING CLAUSE; REPEALS; EFFECTIVE DATE
Section 901. Saving Clause.
Section 902. Repeals.
Section 903. Effective Date.
BENEFITS TO EMPLOYES OF THE COMMONWEALTH
Section 1001. State Employes.
Section 1002. Services Excluded from "Employment."
Section 1003. Contributions.
EMPLOYES OF NONPROFIT ORGANIZATIONS.
Section 1101. Nonprofit Organization Defined.
Section 1102. Employment by Nonprofit Organizations.
Section 1103. Liability for Contributions.
Section 1104. Election of Reimbursement.
Section 1105. Method of Election.
Section 1106. Reimbursement Payments.
Section 1107. Termination of Elections.
Section 1108. Allocation of Benefit Costs.
Section 1109. Group Accounts.
Section 1110. No Offset of Benefits.
EMPLOYES OF POLITICAL SUBDIVISIONS
Section 1201. Political Subdivision Employes.
Section 1202. Contributions.
Section 1202.1. Liability for Contributions.
Section 1202.2. Election of Reimbursement.
Section 1202.3. Method of Election.
Section 1202.4. Reimbursement Payments.
Section 1202.5. Termination of Elections.
Section 1203. Allocation; Group Accounts.
Section 1204. No Offset of Benefits.
Section 1301. Definitions.
Section 1302. Application to approve shared-work plan.
Section 1303. Shared-work plan requirements.
Section 1304. Approval or disapproval of shared-work plan.
Section 1305. Effective period of shared-work plan.
Section 1306. Criteria for compensation.
Section 1307. Participating employer responsibilities.
Section 1308. Modification of an approved shared-work plan.
Section 1309. Termination of an approved shared-work plan.
Section 1310. Department discretion.
Section 1311. Publication of notice.
Section 1312. Severability.
Section 1313. Expiration (Deleted by amendment).
UNEMPLOYMENT COMPENSATION BONDS
Section 1401. Definitions.
Section 1402. Bond issuance.
Section 1403. Criteria for bond issuance
Section 1404. Issuance of bonds and security.
Section 1405. Sale of bonds.
Section 1406. Use of bond proceeds.
Section 1407. Payment of bond-related obligations.
Section 1408. Commonwealth not to impair bond-related obligations
Section 1409. No personal liability.
Section 1410. Expiration.
Section 1411. Annual report required.
UNEMPLOYMENT COMPENSATION AMNESTY PROGRAM
Section 1501. Definitions.
Section 1502. Program established.
Section 1503. Applicability.
Section 1504. Procedure for participation.
Section 1505. Required payment and terms of amnesty.
Section 1506. Additional terms and conditions of amnesty.
Section 1507. Duties of department.
Section 1508. Construction.
Section 1509. Suspension of inconsistent acts.
Section 1510. Report required.
Section 1. Enacting Clause.--Be it enacted, &c., That,
Section 2. Short Title.--This act shall be known, and may be cited, as the "Unemployment Compensation Law."
Section 3. Declaration of Public Policy.--Economic insecurity due to unemployment is a serious menace to the health, morals, and welfare of the people of the Commonwealth. Involuntary unemployment and its resulting burden of indigency falls with crushing force upon the unemployed worker, and ultimately upon the Commonwealth and its political subdivisions in the form of poor relief assistance. Security against unemployment and the spread of indigency can best be provided by the systematic setting aside of financial reserves to be used as compensation for loss of wages by employes during periods when they become unemployed through no fault of their own. The principle of the accumulation of financial reserves, the sharing of risks, and the payment of compensation with respect to unemployment meets the need of protection against the hazards of unemployment and indigency. The Legislature, therefore, declares that in its considered judgment the public good and the general welfare of the citizens of this Commonwealth require the exercise of the police powers of the Commonwealth in the enactment of this act for the compulsory setting aside of unemployment reserves to be used for the benefit of persons unemployed through no fault of their own.
Section 4. Definitions.--The following words and phrases, as used in this act, shall have the following meanings, unless the context clearly requires otherwise.
(a) "Base year" means the first four of the last five completed calendar quarters immediately preceding the first day of an individual's benefit year. ((a) amended July 10, 1980, P.L.521, No.108)
(b) "Benefit Year" with respect to an individual who files or has filed a "Valid Application for Benefits" means the fifty-two consecutive week period beginning with the day as of which such "Valid Application for Benefits" is filed, and thereafter the fifty-two consecutive week period beginning with the day as of which such individual next files a "Valid Application for Benefits" after the termination of his last preceding benefit year. ((b) amended Dec. 5, 1974, P.L.771, No.262)
(c) "Board" means the Unemployment Compensation Board of Review established by this act. ((c) amended May 23, 1949, P.L.1738, No.530)
(d) "Calendar quarter" means the period of three consecutive calendar months ending on March thirty-first, June thirtieth, September thirtieth or December thirty-first, or the equivalent thereof, as determined in accordance with general rules of the department. ((d) amended May 23, 1949, P.L.1738, No.530)
(e) ((e) repealed June 22, 1964, Sp.Sess., P.L.112, No.7)
(f) "Compensation" means:
(1) money payments payable to individuals with respect to their unemployment as provided in this act; and
(2) to the extent permitted by law, that part of the principal owed on bonds issued under Article XIV of this act that is attributable to repayment of the principal of advances under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.), exclusive of any interest or administrative costs associated with the bonds.
((f) amended June 12, 2012, P.L.577, No.60)
(g) "Contributions" means the money payments required to be paid into the Unemployment Compensation Fund by employers, with respect to employment, which payments shall be used for the creation of financial reserves for the payment of compensation as provided in this act. This meaning includes, where appropriate in the enforcement provisions of this act, payments in lieu of contributions required to be paid by employers operating on a reimbursement basis as provided in Articles X, XI and XII of this act. "Contributions" also means, where appropriate in this act, money payments required to be paid into the Unemployment Compensation Fund by employes as provided in this act. ((g) amended July 21, 1983, P.L.68, No.30)
(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:
(1) One hundred dollars ($100). This paragraph shall expire December 31, 2014.
(2) Sixteen (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." This paragraph shall take effect January 1, 2015.
Only one credit week can be established with respect to any one calendar week.
((g.1) amended June 20, 2011, P.L.16, No.6)
(h) "Department" means the Department of Labor and Industry of the Commonwealth of Pennsylvania. ((h) amended May 23, 1949, P.L.1738, No.530)
(h.1) "Disaster" means a fire, flood or other physical occurrence, beyond the employer's control, caused naturally or accidentally. ((h.1) added Dec. 19, 1996, P.L.1476, No.189)
(i) "Employe" means every individual, whether male, female, citizen, alien or minor, who is performing or subsequent to January first, one thousand nine hundred thirty-six, has performed services for an employer in an employment subject to this act. ((i) amended May 23, 1949, P.L.1738, No.530)
(j) (1) "Employer" means the Commonwealth of Pennsylvania, its political subdivisions, and their instrumentalities and every individual, copartnership, association, corporation (domestic or foreign) or other entity, the legal representative, trustee in bankruptcy, receiver or trustee of any individual, copartnership, association or corporation or other entity, or the legal representative of a deceased person, who or which employed or employs any employe in employment subject to this act for some portion of a day during a calendar year, or who or which has elected to become fully subject to this act, and whose election remains in force.
(2) Each individual employed to perform or to assist in performing work of any agent or employe of an employer shall be deemed to be employed by such employer for all the purposes of this act, whether such individual was hired or paid directly by such employer or by such agent or employe, provided the employer had actual or constructive knowledge of the work (except as provided in subsection (l)(3)(G) of this section).
(2.1) An individual or entity that transfers some or all of its work force to the payroll of another individual or entity, directly or indirectly, as part of or resulting in an arrangement whereby the individual or entity shares employer functions with respect to some or all of its work force with the other individual or entity shall be the employer of the employe or employes covered by the arrangement with the other individual or entity. This paragraph shall include, without limitation, an arrangement known as a professional employer arrangement or employe leasing arrangement. This paragraph does not include a temporary help arrangement in which an individual or entity utilizes one or more workers supplied by another individual or entity to supplement its work force in special, temporary work situations such as absences, skill shortages, seasonal work loads and special assignments.
(3) Where an employer maintains more than one place of employment within this Commonwealth, all of the employes at the several places of employment shall be treated, for the purposes of this act, as if employed by a single employer.
(4) Any individual, copartnership, association, corporation or other entity who or which is not subject to this act may elect to become subject thereto by filing with the department his or its written application.
(5) An employer subject to this act may elect to include within the term "employment," subject to this act, services performed by his or its employes with respect to which no contributions are required and paid under an unemployment compensation law of any other state, (a) if the employe or employes, included in such election, maintain a domicile within this Commonwealth and the services of such employe or employes, are performed entirely without this Commonwealth, or (b) if the employe or employes included in the election maintains no domicile within this Commonwealth but the services of such employe or employes are (A) performed without this Commonwealth and (B) are directed from this Commonwealth.
(6) An employer, subject to this act, may elect to include within the term "employment," subject to this act, services performed by his or its employes which are exempt under the provisions of subsection (l) of section four of this act.
(7) Any election shall be subject to the approval of the department and shall become binding for not less than two calendar years.
(8) Any services performed for an employer covered by an election, pursuant to this subsection, shall, during the effective period of such election, be deemed to be employment for all the purposes of this act. Any election approved by the department, pursuant to this subsection, shall cease to be effective only as of the first day of January of any calendar year subsequent to the initial two calendar years thereof, and only if, at least thirty (30) days prior to such first day of January, the employer has filed with the department a notice of termination of his election. Notwithstanding any provisions of this subsection to the contrary, the department may at any time, on its own motion, cancel an election approved under the provisions of this subsection.
((j) amended June 15, 2005, P.L.8, No.5)
(k) "Employer's Reserve Account" means the separate account established and maintained by the department for each employer in the manner provided in section three hundred two hereof, including any balance of the reserve account of any other employer whose reserve account may have been transferred to such employer. ((k) amended May 26, 1949, P.L.1854, No.551)
(l) (1) "Employment" means all personal service performed for remuneration by an individual under any contract of hire, express or implied, written or oral, including service in interstate commerce, and service as an officer of a corporation.
(2) The term "Employment" shall include an individual's entire service performed within or both within and without this Commonwealth, if--
(A) The service is localized within this Commonwealth, or
(B) The service is not localized in any state but some of the service is performed within this Commonwealth and (a) the base for operations or place from which such service is directed or controlled is in this Commonwealth, or (b) the base for operations or place from which such service is directed or controlled is not in any state in which some part of the service is performed, but the individual's residence is in this Commonwealth. Service shall be deemed to be localized within this Commonwealth if--(a) the service is performed entirely within this Commonwealth, or (b) the service is performed both within and without this Commonwealth, but the service performed without this Commonwealth is incidental to the individual's service within this Commonwealth as for example where it is temporary or transitory in nature or consists of isolated transactions. Services performed without this Commonwealth shall not be included within the term "Employment" if contributions are required and paid with respect to such services under an unemployment compensation law of any other state.
Services performed by an individual for wages shall be deemed to be employment subject to this act, unless and until it is shown to the satisfaction of the department that--(a) such individual has been and will continue to be free from control or direction over the performance of such services both under his contract of service and in fact; and (b) as to such services such individual is customarily engaged in an independently established trade, occupation, profession or business.
(C) The term "Employment" shall include an individual's services wherever performed within the United States, the Virgin Islands or Canada if--(i) such service is not covered under the unemployment compensation law of any other state, the Virgin Islands or Canada, and (ii) the place from which the service is directed or controlled is in this Commonwealth.
(3) "Employment" shall also include--
(A) Services covered by an election pursuant to section 4 (j) of this act, and
(B) Services covered by an arrangement pursuant to section 312 of this act between the department and the agency of any other state or Federal Unemployment Compensation Law, pursuant to which all services performed by an individual for an employing unit are deemed to be performed entirely within this State, shall be deemed to be employment if the department has approved an election of an employing entity for whom such services are performed, pursuant to which the entire service of such individual during the period covered by such election is deemed to be employment.
(C) Notwithstanding any other provisions of section 4(l), an individual's entire service as an officer or member of a crew of an American vessel on or in connection with such vessel, wherever performed, and whether in intrastate or interstate or foreign commerce, if the employer maintains within this State the operating office from which the operations of the American vessel, in respect to which such services are performed, are ordinarily and regularly managed, supervised, directed and controlled.
(D) Service of an individual who is a citizen of the United States after December 31, 1971, performed outside the United States (except in Canada and in the case of the Virgin Islands after December 31, 1971, and before January 1 of the year following the year in which the Secretary of Labor approves for the first time an unemployment insurance law submitted to him by the Virgin Islands for approval) in the employ of an American employer (other than service which is deemed "employment" under the provisions of paragraph (2) of this subsection or the parallel provisions of another state's law), if:
(a) the employer's principal place of business in the United States is located in this State; or
(b) the employer has no place of business in the United States, but (i) the employer is an individual who is a resident of this State; or (ii) the employer is a corporation which is organized under the laws of this State; or (iii) the employer is a partnership or a trust and the number of the partners or trustees who are residents of this State is greater than the number who are residents of any one other state; or
(c) none of the criteria of divisions (a) and (b) of this subparagraph is met but the employer has elected coverage in this State, or the employer having failed to elect coverage in any state, the individual has filed a claim for benefits, based on such service, under this act.
(d) an "American employer" for purposes of this subparagraph, means a person who is (i) an individual who is a resident of the United States; or (ii) a partnership if two-thirds or more of the partners are residents of the United States; or (iii) a trust, if all of the trustees are residents of the United States; or (iv) a corporation organized under the laws of the United States or of any state.
(E) Service by an individual other than one who is an employe under paragraphs (1) and (2) of this subsection who performs services for remuneration for any person--
(a) as an agent-driver or commission-driver engaged in distributing meat products, vegetable products, fruit products, bakery products, beverages (other than milk), or laundry or dry-cleaning services, for his principal;
(b) as a traveling or city salesman, other than as an agent-driver or commission-driver, engaged upon a full-time basis in the solicitation on behalf of, and the transmission to, his principal (except for side-line sales activities on behalf of some other person) of orders from wholesalers, retailers, contractors, or operators of hotels, restaurants, or other similar establishments for merchandise for resale or supplies for use in their business operations:
Provided, That for the purposes of this subparagraph, the term "employment" shall include services described in (a) and (b) above performed after December 31, 1971 only if: (i) the contract of service contemplates that substantially all of the services are to be performed personally by such individual; (ii) the individual does not have a substantial investment in facilities used in connection with the performance of the services (other than in facilities for transportation); and (iii) the services are not in the nature of a single transaction that is not part of a continuing relationship with the person for whom the services are performed.
(F) Services performed after December 31, 1971 by an individual as defined under the provisions of Articles X, XI and XII of this act except for services excluded from employment pursuant to such articles.
(G) Notwithstanding any other provisions of this act, service performed after December 31, 1977, by an individual in agricultural labor as defined in section 4(l)(4)(1) when:
(a) Such service is performed for a person who--
(1) during any calendar quarter in either the current or the preceding calendar year paid remuneration in cash of twenty thousand dollars or more to individuals employed in agricultural labor (not taking into account service in agricultural labor performed before January 1, 1982, by an alien referred to in section 4(l)(3)(G)(a.1) or 4(l)(2)(G)(a.1)); or
(2) for some portion of a day in each of twenty different calendar weeks, whether or not such weeks were consecutive, in either the current or the preceding calendar year, employed in agricultural labor (not taking into account service in agricultural labor performed before January 1, 1982, by an alien referred to in section 4(l)(3)(G)(a.1)) ten or more individuals, regardless of whether they were employed at the same moment of time.
((a) amended July 10, 1980, P.L.521, No.108)
(a.1) Such service is not performed in agricultural labor if performed before January 1, 1982, by an individual who is an alien admitted to the United States to perform service in agricultural labor pursuant to sections 214(c) and 101(a)(15)(H) of the Immigration and Nationality Act. ((a.1) amended July 10, 1980, P.L.521, No.108)
(b) For the purposes of this subsection any individual who is a member of a crew furnished by a crew leader to perform service in agricultural labor for any other person shall be treated as an employe of such crew leader--
(1) if such crew leader holds a valid certificate of registration under the Farm Labor Contractor Registration Act of 1963; or substantially all the members of such crew operate or maintain tractors, mechanized harvesting or cropdusting equipment, or any other mechanized equipment, which is provided by such crew leader; and
(2) if such individual is not an employe of such other person within the meaning of division (a)(1) and (2) above.
(c) For the purposes of this subparagraph (G), in the case of any individual who is furnished by a crew leader to perform service in agricultural labor for any other person and who is not treated as an employe of such crew leader--
(1) such other person and not the crew leader shall be treated as the employer of such individual; and
(2) such other person shall be treated as having paid cash remuneration to such individual in an amount equal to the amount of cash remuneration paid to such individual by the crew leader (either on his own behalf or on behalf of such other person) for the service in agricultural labor performed for such other person.
(d) The term "crew leader" means an individual who--
(1) furnishes individuals to perform service in agricultural labor for any other person;
(2) pays (either on his own behalf or on behalf of such other person) the individuals so furnished by him for the service in agricultural labor performed by them; and
(3) has not entered into a written agreement with the farm operator under which the crew leader is designated as an employe of the farm operator.
(H) Notwithstanding any other provisions of this act, domestic service after December 31, 1977, in a private home, local college club or local chapter of a college fraternity or sorority performed for a person who paid cash remuneration of one thousand dollars or more after December 31, 1977, in any calendar quarter in the current calendar year or the preceding calendar year to individuals employed in such domestic service.
(4) The word "employment" shall not include--
(1) Agricultural labor which shall include all services performed except those services defined in 4(l)(3)(G)--
(a) On a farm in the employ of any person in connection with cultivating the soil or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training and management of livestock, bees, poultry and fur-bearing animals and wildlife.
(b) In the employ of the owner or tenant or other operator of a farm in connection with the operation, management, conservation, improvement or maintenance of such farm and its tools and equipment or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of such service is performed on a farm.
(c) In connection with the production or harvesting of any commodity defined as an agricultural commodity in section 15(g) of the Agricultural Marketing Act, as amended (46 Stat.1550, sec.3:12 U.S.C.A. 1141j), or in connection with the ginning of cotton, or in connection with the operation or maintenance of ditches, canals, reservoirs or waterways not owned or operated for profit, used exclusively for supplying and storing water for farming purposes.
(d) (1) In the employ of the operator of a farm in handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering to storage or to market or to a carrier for transportation to market in its unmanufactured state, any agricultural or horticultural commodity, but only if such operator produced more than one-half of the commodity with respect to which such service is performed.
(2) In the employ of a group of operators of farms (or a cooperative organization of which such operators are members) in the performance of service described in (d)(1) above, but only if such operators produced more than one-half of the commodity with respect to which such service is performed.
(3) The provisions of (d)(1) and (d)(2) above shall not be deemed to be applicable with respect to service performed in connection with commercial canning or commercial freezing or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption.
(e) On a farm operated for profit if such service is not in the course of the employer's trade or business.
(f) As used in this subparagraph the term "farm" includes stock dairy, poultry, fruit, fur-bearing animals, and truck farms, plantations, ranches, nurseries, ranges, greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities and orchards.
(2) Domestic service in a private home, local college club or local chapter of a college fraternity or sorority.
(3) Service not in the course of the employer's trade or business performed in any calendar quarter by an employe unless the cash remuneration paid for such service is fifty dollars or more and such service is performed by an individual who is regularly employed by such employer to perform such service. For purposes of this subparagraph, an individual shall be deemed to be regularly employed by an employer during a calendar quarter only if
(i) on each of some twenty-four days during such quarter, such individual performs for such employer for some portion of the day service not in the course of the employer's trade or business, or
(ii) such individual was regularly employed (as determined under clause (i)) by such employer in the performance of such service during the preceding calendar quarter.
(4) Service performed on or in connection with a vessel or aircraft not an American vessel or American aircraft if the employe is employed on or in connection with such vessel or aircraft when outside the United States.
(5) Service performed by an individual in the employ of his son, daughter, or spouse, and service performed by a child under the age of eighteen (18) in the employ of his father or mother.
(6) Service performed in the employ of the United States Government or of an instrumentality of the United States exempt under the Constitution of the United States from the contributions imposed by this act, except that, to the extent that the Congress of the United States shall permit states to require any instrumentalities of the United States to make payments into an unemployment fund under a state unemployment compensation law, all of the provisions of this act shall be applicable to such instrumentalities in the same manner to the same extent and on the same terms as to all other employers. In the event that this State shall not be certified for any year by the Social Security Board under section three thousand three hundred four (c) of the Federal Internal Revenue Code of 1954, as amended, the payments required of such instrumentalities with respect to such year shall be refunded by the department from the fund in the same manner and within the same period as is provided in section three hundred eleven of this act with respect to contributions erroneously collected.
(7) ((7) deleted July 6, 1977, P.L.41, No.22)
(8) For the purposes of Articles X, XI, XII--(a) Service performed in the employ of (i) a church or convention or association of churches or (ii) an organization which is operated primarily for religious purposes and which is operated, supervised, controlled or principally supported by a church or convention or association of churches; or
(b) by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry or by a member of a religious order in the exercise of duties required by such order; or
(c) ((c) deleted July 6, 1977, P.L.41, No.22)
(d) in a facility conducted for the purpose of carrying out a program of (i) rehabilitation for individuals whose earning capacity is impaired by age or physical or mental deficiency or injury or (ii) providing remunerative work for individuals who because of their impaired physical or mental capacity cannot be readily absorbed in the competitive labor market, by an individual receiving such rehabilitation or remunerative work; or
(e) as part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any Federal agency or an agency of a State or political subdivision thereof, by an individual receiving such work relief or work training; or
(f) prior to January 1, 1978 for a hospital in a State prison or other State correctional institution by an inmate of the prison or correctional institution and after December 31, 1977, by an inmate of a custodial or penal institution.
(9) Service performed after June thirtieth, one thousand nine hundred and thirty-nine, either as an employe, representative, or service performed in the employ of an employer when such employe, representative, or employer is determined to be subject to the Act of Congress known as the Railroad Unemployment Insurance Act (52 U.S. Stat.1094) or to an Act of Congress establishing an unemployment compensation system for maritime employes by the agency or agencies empowered to make such determinations.
(10) (A) Service performed in any calendar quarter in the employ of an organization exempt from income tax under section 501(a) of the Federal Internal Revenue Code of 1954, as amended, (other than an organization described in section 401(a) of said code) or under section 521 of said code if the remuneration for such service is less than fifty dollars; or
(B) Service performed in the employ of a school, college or university if such service is performed (i) by a student who is enrolled and is regularly attending classes at such school, college or university or (ii) by the spouse of such a student if such spouse is advised at the time such spouse commences to perform such service that (i) the employment of such spouse to perform such service is provided under a program to provide financial assistance to such student by such school, college or university and (ii) such employment will not be covered by any program of unemployment insurance; or
(C) Service performed by an individual under the age of twenty-two who is enrolled at a nonprofit or public educational institution which normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on, as a student in a full-time program, taken for credit at such institution which combines academic instruction with work experience, if such service is an integral part of such program and such institution has so certified to the employer, except that this subparagraph shall not apply to service performed in a program established for or on behalf of an employer or group of employers; or
(D) Service performed in the employ of a hospital, if such service is performed by a patient of the hospital as defined in section 4(m.1) of this act.
(11) Service performed in the employ of an international organization.
(12) Service performed by a nonresident, alien individual for the period he is temporarily present in the United States as a nonimmigrant under subparagraph (F) or (J) of section 101(a)(15) of the Federal Immigration and Nationality Act, as amended, and which is performed to carry out the purpose specified in subparagraph (F) or (J), as the case may be.
(14) Service performed in the employ of a foreign government (including service as a consular or other office or employe or a nondiplomatic representative).
(15) Service performed in the employ of an instrumentality wholly owned by a foreign government, (i) if the service is of a character similar to that performed in foreign countries by employes of the United States Government or of an instrumentality thereof, and (ii) if the Secretary of State of the United States shall certify to the Secretary of the Treasury of the United States that the foreign government, with respect to whose instrumentality exemption is claimed, grants an equivalent exemption with respect to similar service performed in the foreign country by employes of the United States Government and of instrumentalities thereof.
(16) Service performed as a student nurse in the employ of a hospital or a nurses' training school by an individual who is enrolled and is regularly attending classes in a nurses' training school chartered or approved pursuant to the laws of this Commonwealth and services performed as an interne in the employ of a hospital by an individual who has completed a four years' course in a medical school chartered or approved pursuant to the laws of this Commonwealth.
(17) Service performed by an individual for an employer as an insurance agent or real estate salesman or as an insurance solicitor or as a real estate broker or as a solicitor of applications for, or salesman of, shares of or certificates issued by an investment company, or as an agent of an investment company, if all such service performed by such individual for such employer is performed for remuneration solely by way of commission, or services performed by an individual as an unsalaried correspondent for a newspaper, who receives no compensation, or compensation only for copy accepted for publication.
(18) Service performed by an individual under the age of eighteen in the delivery or distribution of newspapers or shopping news, not including delivery or distribution to any point for subsequent delivery or distribution.
(19) Service covered by an arrangement between the department and the agency charged with the administration of any other state or Federal Unemployment Compensation Law, pursuant to which all services performed by an individual for an employing entity during the period covered by such employing unit's duly approved election, are deemed to be performed entirely within such agency's state or under such Federal law.
(20) Services performed as a direct seller.
(A) The term "direct seller" means any person (i) engaged in the trade or business of selling or soliciting the sale of consumer products to any buyer on a buy-sell basis or a deposit-commission basis, or any similar basis which the United States Secretary of Treasury or his delegate prescribes by regulations for resale by the buyer or any other person in the home or otherwise than in a permanent retail establishment, or (ii) engaged in the trade or business of selling or soliciting the sale of consumer products in the home or otherwise than in a permanent retail establishment.
(B) To be a "direct seller," (i) substantially all the remuneration whether or not paid in cash for the performance of the services described under this definition must be directly related to sales or other output, including the performance of services, rather than to the number of hours worked, and (ii) the services performed by the person must be performed pursuant to a written contract between the person and the person for whom the services are performed and the contract provides that the person will not be treated as an employe with respect to the services for Federal tax purposes.
((20) added Oct. 30, 1996, P.L.738, No.133)
(21) Services performed by a full-time student in the employ of an organized camp if:
(A) the camp did not operate for more than seven months in the calendar year and did not operate for more than seven months in the preceding calendar year; or had average gross receipts for any six months in the preceding calendar year which were not more than thirty-three and one-third per centum (33 1/3%) of its average gross receipts for the other six months in the preceding calendar year; and
(B) the full-time student performs services in the employ of the camp for less than thirteen calendar weeks in any such year.
(C) For purposes of this subparagraph, an individual shall be treated as a full-time student for any period during which the individual is enrolled as a full-time student at an educational institution; or which is between academic years or terms if the individual was enrolled as a full-time student at an educational institution for the immediately preceding academic year or term and there is a reasonable assurance that the individual will be so enrolled for the immediately succeeding academic year or term.
(D) For purposes of this subparagraph, the term "educational institution" shall mean any educational institution of secondary, higher educational, professional or vocational educational training.
(E) For purposes of this subparagraph, the term "camp" shall mean a children's overnight camp or a summer day camp of any variety.
((21) added Oct. 23, 2013, P.L.637, No.75)
(5) If the services performed during one-half or more of any pay period by an employe for the person employing him constitute employment, all the services of such employe for such period shall be deemed to be employment, but, if the services performed during more than one-half of any such pay period by an employe for the person employing him do not constitute employment, then none of the services of such employe for such period shall be deemed to be employment. As used in this paragraph the term "pay period" means a period (of not more than thirty-one consecutive days) for which a payment of remuneration is ordinarily made to the employe by the person employing him. This subsection shall not be applicable with respect to services performed in a pay period by an employe for the person employing him where any of such service is excepted by paragraph (9) of subsection (l)(4) of this section.
(6) Notwithstanding any of the other provisions of section 4 (l), services shall be deemed to be in employment, if with respect to such services a tax is required to be paid under any Federal law imposing a tax, against which credit may be taken for contributions required to be paid into a State Unemployment Compensation Fund or which as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act are required to be covered under this act.
((l) amended July 6, 1977, P.L.41, No.22)
(m) "Employment Office" means a public employment office or branch thereof, operated by the department or by any other state or by the Federal Government under agreement with the department. ((m) amended May 23, 1949, P.L.1738, No.530)
(m.1) "Hospital" means an institution which has been licensed, certified or approved by the Department of Public Welfare of the Commonwealth of Pennsylvania as a hospital. ((m.1) added Sept. 27, 1971, P.L.460, No.108)
(m.2) "Institution of higher education" means an educational institution which--
(1) admits as regular students only individuals having a certificate of graduation from a high school or the recognized equivalent of such a certificate;
(2) is legally authorized in this Commonwealth to provide a program of education beyond high school;
(3) provides an educational program for which it awards a bachelor's or higher degree or provides a program which is acceptable for full credit toward such a degree, a program of post-graduate or post-doctoral studies or a program of training to prepare students for gainful employment in a recognized occupation; and
(4) is a public or other nonprofit institution.
Notwithstanding any of the foregoing provisions of this subsection, all colleges and universities in this Commonwealth are institutions of higher education for purposes of this act.
((m.2) added Sept. 27, 1971, P.L.460, No.108)
(m.3) "Partial Benefit Credit" means that part of the remuneration, if any paid or payable to an individual with respect to a week for which benefits are claimed under the provisions of this act, which is not in excess of thirty per centum (30%) of the individual's weekly benefit rate or six dollars whichever is the greater. Such partial benefit credit if not a multiple of one dollar ($1) shall be computed to the next higher multiple of one dollar ($1). ((m.3) amended June 12, 2012, P.L.577, No.60)
(n) "Referee" means a referee appointed to hear appeals under this act. ((n) amended May 23, 1949, P.L.1738, No.530)
(o) "Secretary" means the Secretary of Labor and Industry of this Commonwealth, or his duly authorized representative. ((o) amended May 23, 1949, P.L.1738, No.530)
(p) "Social Security Act" means the act enacted by the Congress of the United States, approved the fourteenth day of August, one thousand nine hundred and thirty-five, entitled "An act to provide for the general welfare by establishing a system of Federal old-age benefits, and by enabling the several States to make more adequate provision for aged persons, blind persons, dependent and crippled children, maternal and child welfare, public health, and the administration of their unemployment compensation laws; to establish a Social Security Board; to raise revenue; and for other purposes," as amended. ((p) amended May 23, 1949, P.L.1738, No.530)
(q) "Social Security Board" means the Social Security Board established by the Social Security Act or such other agency or agencies of the United States to which the authority of the Social Security Board may be transferred. ((q) amended May 23, 1949, P.L.1738, No.530)
(r) "State" includes Puerto Rico, Virgin Islands and the District of Columbia. ((r) amended Sept. 14, 1961, P.L.1301, No.570)
(s) ((s) repealed June 22, 1964, Sp.Sess., P.L.112, No.7)
(t) "Suitable Work" means all work which the employe is capable of performing. In determining whether or not any work is suitable for an individual, the department shall consider the degree of risk involved to his health, safety and morals, his physical fitness, prior training and experience, and the distance of the available work from his residence. The department shall also consider among other factors the length of time he has been unemployed and the reasons therefor, the prospect of obtaining local work in his customary occupation, his previous earnings, the prevailing condition of the labor market generally and particularly in his usual trade or occupation, prevailing wage rates in his usual trade or occupation, and the permanency of his residence. However, notwithstanding any other provisions of this subsection no work shall be deemed suitable in which (1) the position offered is vacant, due directly to a strike, lockout, or other labor dispute, or (2) the remuneration, hours or other conditions of the work offered are substantially less favorable to the employe than those prevailing for similar work in the locality, or (3) as a condition of being employed, the employe would be required to join a company union, or to resign from, or refrain from joining, any bona fide labor organization. ((t) amended May 23, 1949, P.L.1738, No.530)
(u) "Unemployed."--An individual shall be deemed unemployed (I) with respect to any week (i) during which he performs no services for which remuneration is paid or payable to him and (ii) with respect to which no remuneration is paid or payable to him, or (II) with respect to any week of less than his full-time work if the remuneration paid or payable to him with respect to such week is less than his weekly benefit rate plus his partial benefit credit.
Notwithstanding any other provisions of this act, an employe who is unemployed during a plant shutdown for vacation purposes shall not be deemed ineligible for compensation merely by reason of the fact that he or his collective bargaining agents agreed to the vacation.
No employe shall be deemed eligible for compensation during a plant shutdown for vacation who receives directly or indirectly any funds from the employer as vacation allowance.
((u) amended Mar. 24, 1964, Sp.Sess., P.L.53, No.1)
(v) "Unemployment Trust Fund" means the Unemployment Trust Fund established by the Social Security Act. ((v) amended May 23, 1949, P.L.1738, No.530)
(w) (1) A "Valid Application for Benefits" means an application for benefits on a form prescribed by the department, which is filed by an individual, as of a day not included in the benefit year previously established by such individual, who (1) has been separated from his work or who during the week commencing on the Sunday previous to such day has worked less than his full time due to lack of work and (2) is qualified under the provisions of section four hundred and one (a), (b) and (d).
(2) An application for benefits filed after the termination of a preceding benefit year by an individual shall not be considered a Valid Application for Benefits within the meaning of this subsection, unless such individual has, subsequent to the beginning of such preceding benefit year and prior to the filing of such application, worked and earned wages in "employment" as defined in this act in an amount equal to or in excess of six (6) times his weekly benefit rate in effect during such preceding benefit year.
((w) amended June 12, 2012, P.L.577, No.60)
(x) "Wages" means all remuneration, (including the cash value of mediums of payment other than cash, except that only cash wages shall be used to determine the coverage of agricultural labor as defined in section 4(l)(3)(G) and domestic service as defined in section 4(l)(3)(H)), paid by an employer to an individual with respect to his employment except that the term "wages" shall not include: (intro. par. amended June 12, 2012, P.L.577, No.60)
(1) For purposes of paying employer contributions, that part of the remuneration paid to an individual by each of his employers during a calendar year that exceeds eight thousand five hundred dollars ($8,500) for calendar year 2013, eight thousand seven hundred fifty dollars ($8,750) for calendar year 2014, nine thousand dollars ($9,000) for calendar year 2015, nine thousand five hundred dollars ($9,500) for calendar year 2016, nine thousand seven hundred fifty dollars ($9,750) for calendar year 2017 and ten thousand dollars ($10,000) for calendar year 2018 and thereafter: Provided, That an employer may take credit under this subsection for remuneration which his predecessor-in-interest has paid to an individual during the same calendar year with respect to employment; and provided also, that an employer may take credit under this subsection for remuneration which he or his predecessor-in-interest has paid to an individual in the same calendar year on which contributions have been required and paid by such employer under an unemployment compensation law of another state, but no such credit may be taken for remuneration which has been paid by another employer to such individual, whether or not contributions have been paid thereon by such other employer under this act or under any state unemployment compensation law. ((1) amended June 12, 2012, P.L.577, No.60)
(2) The amount of any payment made after December thirty-first, one thousand nine hundred fifty, (including any amount paid by an employing unit for insurance or annuities or into a fund to provide for any such payment), to or on behalf of an individual or any of his dependents under a plan or system established by an employer who makes provision generally for individuals performing service for it (or for such individuals generally and their dependents), or for a class or classes of such individuals (or for a class or classes of such individuals and their dependents), on account of (i) retirement, or (ii) sickness or accident disability, or (iii) medical or hospitalization expenses in connection with sickness or accident disability, or (iv) death. ((2) amended Sept. 29, 1951, P.L.1580, No.408)
(3) The payment by an employer (without deduction from remuneration of the employe) of the tax imposed upon an employe under section three thousand one hundred one of the Federal Internal Revenue Code of 1954, as amended. ((3) amended June 22, 1964, Sp.Sess., P.L.112, No.7)
(4) Dismissal payments before the first day of January, one thousand nine hundred fifty-two, which the employer is not legally required to make. ((4) amended Sept. 29, 1951, P.L.1580, No.408)
(5) Payments made by an employer to employes while in the military or naval service of the United States and performing no services for the employer. ((5) amended Sept. 29, 1951, P.L.1580, No.408)
(6) Notwithstanding any other provisions of this subsection, wages shall include all remuneration for services with respect to which a tax is required to be paid under any Federal law imposing a tax against which credit may be taken for contributions to be paid into a state unemployment fund or which as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act are required to be included under this act. ((6) amended Sept. 27, 1971, P.L.460, No.108)
(7) The amount of any payment made after December thirty-first, one thousand nine hundred fifty, by an employer to or on behalf of an individual performing services for him, (including any amount paid by an employer for insurance or annuities or into a fund to provide for any such payment), on account of retirement. ((7) added Sept. 29, 1951, P.L.1580, No.408)
(8) The amount of any payment on account of sickness or accident disability or medical or hospitalization expenses in connection with sickness or accident disability made after the thirty-first day of December, one thousand nine hundred fifty, by an employer to or on behalf of an individual performing services for it after the expiration of six calendar months following the last calendar month in which the individual performed services for such employer. ((8) added Sept. 29, 1951, P.L.1580, No.408)
(9) The amount of any payment made after the thirty-first day of December, one thousand nine hundred fifty, by an employer to or on behalf of an individual performing services for it, or his beneficiary, (i) from or to a trust exempt from tax under section 401(a) of the Federal Internal Revenue Code of 1954, as amended, at the time of such payment, unless such payment is made to an individual performing services for the trust as remuneration for such services and not as a beneficiary of the trust, or (ii) under or to an annuity plan which at the time of such payments is a plan described in section 403(a) of said code, or (iii) under or to a bond purchase plan which at the time of such payment is a qualified bond purchase plan described in section 405(a) of said code. ((9) amended June 22, 1964, Sp.Sess., P.L.112, No.7)
(10) ((10) repealed Sept. 27, 1971, P.L.460, No.108)
(11) The amount of any remuneration paid in any medium other than cash to an individual for service not in the course of the employer's trade or business. ((11) added June 22, 1964, Sp.Sess., P.L.112, No.7)
(y) ((y) repealed June 22, 1964, Sp.Sess., P.L.112, No.7)
(z) "Week" means any calendar week ending at midnight Saturday, or the equivalent thereof, as determined in accordance with general rules adopted by the department: Provided, however, That for the purposes of computation of the partial benefit credit if the workday of an individual includes parts of two calendar days, all the work performed by such individual during such workdays shall be deemed to have been performed during the day in which the preponderance of the work was performed. If the work performed is equally divided over two calendar days the work shall be deemed to have been performed in the day in which the shift began. ((z) amended Mar. 17, 1978, P.L.14, No.8)
(z.1) "American Vessel" means any vessel documented and numbered under the laws of the United States, including any vessel which is neither documented or numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew is employed solely by one or more citizens or residents of the United States or corporations organized under the laws of the United States or of any state and the term "American aircraft" means an aircraft registered under the laws of the United States. ((z.1) amended June 22, 1964, Sp.Sess., P.L.112, No.7)
(z.2) "Shipping Articles" means "Articles of Agreement" purporting to comply with section five hundred sixty-four of Title forty-six of the United States Code, or any other agreement under which officers or members of the crew are employed on the high seas and under which they are not entitled to a final settlement of wages until the termination of the period of the employment. ((z.2) amended May 23, 1949, P.L.1738, No.530)
(z.3) "Computation Date" means June thirtieth of the year preceding the effective date of new rates of contribution, which date shall be January first of the succeeding year. ((z.3) added May 26, 1949, P.L.1854, No.551)
(z.4) "Annual Payroll" means the total amount of "wages," as herein defined, paid by any employer during the twelve consecutive calendar month period ending on June thirtieth of any year, including such wages paid by any other employer appertaining to that balance of the reserve account of such other employer which may have been transferred to such employer. ((z.4) added May 26, 1949, P.L.1854, No.551)
(z.5) "Average Annual Payroll" means the average of the last three consecutive "annual payrolls" of any employer: Provided, That for any employer in Groups 1 and 2 as defined in section 301.1(b) who has not paid wages for three "annual payrolls," the "average annual payroll" means the average of such fewer "annual payrolls." ((z.5) amended Dec. 17, 1959, P.L.1893, No.693)
(z.6) "Annual Benefits" means the total amount of benefits charged to an employer's account during the twelve consecutive calendar month period ending on June thirty of any year. ((z.6) added Dec. 17, 1959, P.L.1893, No.693)
(z.7) "Average Annual Benefits" means the average of the last three consecutive "annual benefits" of any employer: Provided, That for any employer in Groups 1 and 2 as defined in section 301.1(b) who has not paid wages for three "annual payrolls," the "average annual benefits" means the average of such fewer "annual benefits." ((z.7) added Dec. 17, 1959, P.L.1893, No.693)