Unemployment compensation law




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Compiler's Note: Section 6(4) of Act 75 of 2013, which added subsec. (c), provided that subsec. (c) shall apply to overpayments established on or after October 21, 2013.

Section 802.  False Statements and Representations to Prevent or Reduce Compensation; Other Offenses.--(a)  Any employer (whether or not liable for the payment of contributions under this act) or any officer or agent of such employer or any other person who does any of the following commits a summary offense and shall, upon conviction, be sentenced to pay a fine of not less than one hundred dollars nor more than fifteen hundred dollars or to imprisonment for not longer than thirty days, or both:

(1)  makes a false statement or representation knowing it to be false, or who knowingly fails to disclose a material fact to prevent or reduce the payment of compensation to any employe entitled thereto, or to avoid becoming or remaining subject hereto, or to avoid or reduce any contribution or other payment required from an employer under this act;

(2)  wilfully fails or refuses to make any such contribution or other payment required hereunder;

(3)  wilfully fails or refuses to produce or permit the inspection or copying of records as required hereunder;

(4)  wilfully fails or refuses to furnish any report required by section 304 or 315 of this act or any other provision of this act or the rules or regulations of the department; or

(5)  wilfully reports or attempts to report the wages of one or more employes to the department on an unemployment compensation account other than the account of the employer under this act; or

(6)  wilfully advises, solicits, encourages or commands an employer or an officer or agent of an employer or any other person to engage in an act or omission that is an offense under this section.

(b)  The number of offenses under subsection (a) shall be determined as follows:

(1)  Each false statement or representation or failure to disclose a material fact shall constitute a separate offense under subsection (a)(1) of this section.

(2)  Each day of failure or refusal shall constitute a separate offense under subsection (a)(2), (3) and (4) of this section.

(3)  Each person or entity for whom a registration is not made as required by section 315(a)(1) of this act shall be the basis of a separate offense under subsection (a)(4) of this section.

(4)  Each transfer of organization, trade, business or work force that is not reported as required by section 315(a)(2) or (3) of this act shall be the basis of a separate offense under subsection (a)(4) of this section.

(5)  Each report required by section 304 or 315 of this act, or any other provision of this act or the rules or regulations of the department, shall be the basis of a separate offense under subsection (a)(4) of this act.

(6)  Each calendar quarter and each account on which wages are incorrectly reported shall be the basis of a separate offense under subsection (a)(5) of this section.

(7)  Each incident of advising, soliciting, encouraging or commanding, and each employer, officer, agent or other person advised, solicited, encouraged or commanded, shall be the basis of a separate offense under subsection (a)(6) of this section.

(c)  In addition to any other sanction, any employer, officer, agent or other person convicted under this section for willful failure or refusal to make a payment shall be ordered to make restitution of the unpaid amounts, including interest and penalty from the date the payment was due through the date of payment.

(d)  For purposes of this section, the terms "wilfully" and "willfully" shall have the meaning applicable to the term "willfully" under 18 Pa.C.S. § 302 (relating to general requirements of culpability).

(802 amended June 15, 2005, P.L.8, No.5)

Section 802.1.  Monetary Penalties.--(a)  Any employer (whether or not liable for the payment of contributions under this act) or any officer or agent of such employer or any other person who does any of the following commits an offense for which a civil penalty shall be assessed by the department:

(1)  wilfully fails or refuses to produce or permit the inspection or copying of records as required hereunder;

(2)  wilfully fails or refuses to make any report required by section 315(a)(1) or (2) of this act, wilfully makes or attempts to make such a report containing a misrepresentation of fact, or wilfully makes or attempts to make such a report that fails to disclose a material fact;

(3)  wilfully fails or refuses to make any report required by section 315(a)(4) of this act, wilfully makes or attempts to make such a report containing a misrepresentation of fact, or wilfully makes or attempts to make such a report that fails to disclose a material fact;

(4)  wilfully reports or attempts to report the wages of one or more employes to the department on an unemployment compensation account other than the account of the employer under this act; or

(5)  wilfully advises, solicits, encourages or commands an employer or an officer or agent of an employer or any other person to engage in conduct that is an offense under this section.

(b)  The amount of a penalty under subsection (a)(1) shall not exceed fifteen hundred dollars for each day of failure or refusal.

(c)  The amount of a penalty under subsection (a)(2) of this section shall not exceed the greater of ten thousand dollars or the amount of the difference between the amount of contributions payable by the employer at the rate or rates of contribution assigned by the department in the absence of the report or based on a misrepresentation or nondisclosure in the report and the amount of contributions payable by the employer at the correct rate or rates of contribution. The penalty shall apply to contributions for calendar quarters from the quarter in which the report became due through the quarter in which a report is filed that does not contain a misrepresentation or nondisclosure. Each employer for whom a report is not made, or a report is made containing a misrepresentation or nondisclosure, or an attempt is made to make a report containing a misrepresentation or nondisclosure shall be the basis of a separate penalty.

(d)  The amount of the penalty under subsection (a)(3) of this section shall not exceed ten thousand dollars for each report that is not made, each report containing a misrepresentation or nondisclosure and each attempt to make a report containing a misrepresentation or nondisclosure.

(e)  The amount of the penalty under subsection (a)(4) of this section shall not exceed the greater of ten thousand dollars or the amount of the difference between the amount of contributions payable on the wages as reported on an incorrect account, or the amount of contributions that would have been payable if the attempt to report the wages on an incorrect account had been consummated and the amount of contributions payable on the wages as reported on the employer's account. Each calendar quarter and each employer for which wages are reported on an incorrect account or an attempt is made to report wages on an incorrect account shall be the basis of a separate penalty.

(f)  The amount of the penalty under subsection (a)(5) of this section shall not exceed the greater of ten thousand dollars or the amount of the penalty assessed against the employer, officer, agent or other person who is the object of the conduct that is an offense under subsection (a)(5) of this section. Each employer, officer, agent or other person who is the object of conduct that is an offense under subsection (a)(5) shall be the basis of a separate penalty.

(g)  An officer or agent of an employer or any other person assessed a penalty under this section shall be deemed to be an employer for purposes of the enforcement and collection provisions of this act. A penalty assessed under this section may be collected in the manner provided in sections 308.1, 308.2, 308.3 and 309 of this act and any other manner provided by this act for the collection of contributions, interest and penalty.

(h)  Penalties under this section shall be assessed in accordance with the procedures prescribed in section 304 of this act.

(i)  For purposes of this section, the terms "wilfully" and "willfully" shall have the meaning applicable to the term "willfully" under 18 Pa.C.S. § 302 (relating to general requirements of culpability).

(802.1 added June 15, 2005, P.L.8, No.5)

Section 803.  Violation of Act and Rules and Regulations.--Any person who shall wilfully violate any provision of this act or any rule or regulation thereunder, the violation of which is made unlawful, or the observance of which is required under the terms of this act, and for which a penalty is neither prescribed herein nor provided by any other applicable statute, shall, upon conviction thereof in a summary proceeding, be sentenced to pay a fine of not less than one hundred dollars nor more than one thousand dollars or to imprisonment for not longer than thirty days, or both. Each day such violation continues shall be deemed to be a separate offense.

(803 amended Dec. 9, 2002, P.L.1336, No.158)

Section 804.  Recovery and Recoupment of Compensation.--(a)  Any person who by reason of his fault has received any sum as compensation under this act to which he was not entitled, shall be liable to repay to the Unemployment Compensation Fund to the credit of the Compensation Account a sum equal to the amount so received by him and interest at the rate determined by the Secretary of Revenue as provided by section 806 of the act of April 9, 1929 (P.L.343, No.176), known as "The Fiscal Code," per month or fraction of a month from fifteen (15) days after the Notice of Overpayment was issued until paid. Such sum shall be collectible (1) in the manner provided in section 308.1 or section 309 of this act, for the collection of past due contributions, or (2) by deduction from any future compensation payable to the claimant under this act: Provided, That interest assessed under this section cannot be recouped by deduction from any future compensation payable to the claimant under this act: Provided further, That no administrative or legal proceedings for the collection of such sum shall be instituted after the expiration of ten years following the end of the benefit year with respect to which such sum was paid. ((a) amended June 12, 2012, P.L.577, No.60)

(b)  (1)  Any person who other than by reason of his fault has received with respect to a benefit year any sum as compensation under this act to which he was not entitled shall not be liable to repay such sum but shall be liable to have such sum deducted from any future compensation payable to him with respect to such benefit year, or the three-year period immediately following such benefit year, in accordance with the provisions of this paragraph.

(i)  With respect to overpayments of one hundred dollars or more, recoupment from such future compensation shall not exceed one-third of the maximum benefit amount to which such person is entitled during any such subsequent benefit year nor one-third of the weekly benefit amount to which such person may be entitled for any particular week.

(ii)  If an overpayment is established under this paragraph, an employer is assigned charges for the overpayment under section 302(a)(2) of this act and the determination assigning charges to the employer is final, an amount equal to the amount charged to the employer shall be applied as a credit toward the person's overpayment. The provisions of this subparagraph shall not apply to an overpayment to which subparagraph (iii) applies.

(iii)  In the absence of misrepresentation or non-disclosure of a material fact, no recoupment shall be had if such overpayment is created by reason of:

(A)  a subsequent reversal of two decisions of eligibility under the provisions of section five hundred one (e) of this act;

(B)  the subsequent receipt of holiday pay, vacation pay or the like of which the person had no knowledge; or

(C)  a subsequent determination that the person's base year wages were not earned in employment as defined in this act.

(iv)  No provision of this subsection shall be construed to prevent or prohibit the voluntary repayment of compensation by such person or the maintenance of records of overpayments by the department.

(2)  The claimant and other affected parties shall be notified in writing of the department's determination to deduct any sum from future compensation under this section, and such determination shall be subject to appeal in the manner provided in this act for appeals from determinations of compensation.

(3)  Notwithstanding any other provisions of this subsection, any person who has received or employer who has made a back wage payment pursuant to an award of a labor relations board arbitrator or the like without deduction for unemployment compensation benefits received during the period to which such wages are allocated shall notify the department immediately of the receipt or payment of such back wage award. The recipient of such back wage award, made without deduction for unemployment compensation benefits received during the period, shall be liable to pay into the Unemployment Compensation Fund an amount equal to the amount of such unemployment compensation benefits received.

((b) amended Oct. 23, 2013, P.L.637, No.75)

(c)  Any person who provides to the department a check which is dishonored shall be charged a penalty of one hundred per centum (100%) of the face value of the check, up to a maximum of one hundred dollars ($100) with a minimum of ten dollars ($10) per occurrence for all dishonored checks or such other amounts as shall be determined by the secretary and published in the Pennsylvania Bulletin as a notice under 45 Pa.C.S. § 725(a)(3) (relating to additional contents of Pennsylvania Bulletin). ((c) added July 21, 1983, P.L.68, No.30)

 

Compiler's Note: Section 18(8) of Act 60 of 2012, which amended subsec. (a), provided that the amendment of subsec. (a) shall apply to benefit years that begin on or  after the effective date of section 804.

Section 805.  For the enforcement of this act or any rule and regulation issued under the authority thereof the department is hereby empowered, and it shall be its duty, to conduct such periodic spot checks and investigations as will disclose with reasonable certainty whether or not compensation benefits have been paid to persons not legally entitled thereto or as will disclose violations of this act and to take such steps and adopt such means as may reasonably be necessary to enforce the provisions of this act. The conduct of such spot checks and investigations and all legal proceedings arising therefrom shall be under the supervision and direction of the Attorney General of the Commonwealth, and the expenses thereof and in connection therewith are hereby declared to be administrative expenses to be paid from the Administrative Fund.

(805 added Apr. 23, 1942, Sp. Sess., P.L.60, No.23)

 

ARTICLE IX



SAVING CLAUSE; REPEALS; EFFECTIVE DATE

 

Section 901.  Saving Clause.--The General Assembly reserves the right to amend or repeal all or any part of this act at any time, and there shall be no vested right of any kind against such amendment or repeal. All the rights, privileges, or immunities conferred by this act, or by acts done pursuant thereto, shall exist subject to the power of the General Assembly to amend or repeal this act at any time.



Section 902.  Repeals.--All acts or parts of acts inconsistent herewith are hereby repealed.

Section 903.  Effective Date.--This act shall become effective immediately upon its final enactment.

 

ARTICLE X



BENEFITS TO EMPLOYES OF THE COMMONWEALTH

(Article Heading added Sep. 27, 1971, P.L.460, No.108)



Compiler's Note:  Article X entitled "Termination of Compensation Rights" with one Section 1001 was added June 20, 1939 (P.L.458, No.261). Only Section 1001 was repealed May 23, 1949 (P.L.1738, No.530).

 

Section 1001.  State Employes.--Notwithstanding any other provisions of this act, the Commonwealth of Pennsylvania and all its departments, bureaus, boards, agencies, commissions and authorities shall be deemed to be an employer and services performed in the employ of the Commonwealth and all its departments, bureaus, boards, agencies, commissions and authorities shall be deemed to constitute State employment subject to this act with the exceptions hereinafter set forth in section 1002. Except as herein provided, all other provisions of this act shall continue to be applicable in connection herewith.



The term "authorities" as used in this section means those authorities instituted as separate governmental entities at the State Government level, the governing boards of which are Commonwealth officials or their appointees.

(1001 amended Dec. 22, 1977, P.L.353, No.107)

Section 1002.  Services Excluded from "Employment."--Except for services performed in the employ of a hospital or institution of higher education not otherwise excluded in this act, for the purposes of this article the term "employment" shall not include services performed by:

(1)  Elected officials.

(2)  ((2) deleted July 6, 1977, P.L.41, No.22)

(3)  ((3) deleted July 6, 1977, P.L.41, No.22)

(4)  Inmates of custodial or penal institutions who receive compensation for services rendered therein.

(5)  All department heads and members of boards and commissions, appointed by the Governor with or without the consent of one or both branches of the General Assembly.

(6)  Members of a legislative body, or members of the judiciary, of the Commonwealth or a political subdivision.

(7)  Individuals employed as part of any 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.

(8)  Members of the State National Guard or Air National Guard.

(9)  Students employed as defined in section 4(l)(4)(10)(B) and (C).

(10)  Employes serving on a temporary basis in case of fire, storm, snow, earthquake, flood or similar emergency.

(11)  Individuals serving in positions which, under or pursuant to the laws of this Commonwealth, are designated as (i) a major nontenured policymaking or advisory position; or (ii) a policymaking position the performance of the duties of which ordinarily does not require more than eight hours per week.

(1002 amended July 6, 1977, P.L.41, No.22)

Section 1003.  Contributions.--(a)  In lieu of contributions required to be paid by employers under this act, the Commonwealth of Pennsylvania shall pay into the Unemployment Compensation Fund an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, (after December 31, 1978 the full amount of extended benefits paid) that is attributable to service in the employ of the Commonwealth and all its departments, bureaus, boards, agencies, commissions and authorities.

(b)  The amount which the Commonwealth shall pay into the Unemployment Compensation Fund, as hereinabove set forth, shall be computed by the department and reported quarterly to the State Treasurer who shall thereupon pay such amount from the General Fund of the Commonwealth, upon approval thereof in accordance with the law then in effect, except that to the extent that compensation is paid on the basis of wages paid by an authority of the Commonwealth from its funds such authority shall pay such amount into the Unemployment Compensation Fund from its own funds.

(c)  Past due payments of amounts in lieu of contributions, or reports with respect thereto, shall be subject to the same interest and penalties that, pursuant to section 308 apply to past due contributions and section 206 apply to past due reports.

(1003 amended July 21, 1983, P.L.68, No.30)

 

ARTICLE XI



EMPLOYES OF NONPROFIT ORGANIZATIONS

(Article Heading added Sept. 27, 1971, P.L.460, No.108)

 

Section 1101.  Nonprofit Organization Defined.--A nonprofit organization is a religious, charitable, educational or other organization or group of such organizations described in section 501 (c) (3) of the Federal Internal Revenue Code of 1954, as amended, which is exempt from income tax under section 501 (a) of said code.



(1101 added Sept. 27, 1971, P.L.460, No.108)

Section 1102.  Employment by Nonprofit Organizations.--Service performed by an individual in the employ of a nonprofit organization shall constitute "employment" for all purposes of this act unless excluded by the provisions of section 4 (l) (4) (8) of this act. Remuneration received therefor shall constitute "wages" subject to the contribution provisions of this act.

(1102 amended July 6, 1977, P.L.41, No.22)

Section 1103.  Liability for Contributions.--(a)  Any nonprofit organization which is or becomes subject to this act shall pay contributions on remuneration paid by it for employment under the provisions of sections 301, 301.1, 301.2 or 301.6 of this act, as the case may be, unless an election is made to pay on a reimbursement basis as provided in section 1104. ((a) amended July 21, 1983, P.L.68, No.30)

(b)  The department may choose the method of financing unemployment compensation, either contributory or reimbursement, for any non-profit organization under this article which is, or becomes subject to, this act and fails to comply with the reporting requirements of the act.

(c)  The determination of the department shall become conclusive and binding upon the employer for a period of not less than two taxable years unless:

(1)  within thirty (30) days after the mailing of notice of the determination to the employer, the employer appeals such determination, and

(2)  the employer has satisfactorily complied with the reporting requirements of the method of financing selected by the employer.

(1103 amended July 10, 1980, P.L.521, No.108)

Section 1104.  Election of Reimbursement.--(a)  Any nonprofit organization which, on or after January 1, 1972, is or becomes liable to the contribution provisions of this act may, in lieu of payment of such contributions, elect to pay to the department for the Unemployment Compensation Fund an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, that is attributable to service in the employ of such nonprofit organization. Such employer shall continue to be liable for reimbursement of benefit payments based on wages paid prior to the termination date of such election.

(b)  Such election shall be for a period of not less than two taxable years unless sooner terminated by the department as hereinafter provided.

(1104 amended July 6, 1977, P.L.41, No.22)

Section 1105.  Method of Election.--(a)  Any nonprofit organization which is or becomes subject to this act on January 1, 1972 may exercise its election under the provisions of section 1104 of this act by filing with the department a written notice of such election within the thirty-day period following such date.

(b)  Any nonprofit organization which becomes subject to this act subsequent to January 1, 1972, may exercise its election under section 1104 of this act by filing a written notice thereof with the department within the thirty-day period immediately following the date of the determination of such subjectivity by the department.

(c)  Any nonprofit organization paying contributions under this act for a period subsequent to January 1, 1972, may exercise its election under section 1104 of this act by filing a written notice thereof with the department not later than thirty days prior to the beginning of any taxable year.

(d)  The department may for good cause extend the period within which a notice of election or a notice of termination must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid after December 31, 1971.

(e)  The department, in accordance with such regulations as it may prescribe, shall notify each nonprofit organization of any determination which it may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations shall be subject to reconsideration, appeal and review as provided in section 301 of this act.

(f)  Any nonprofit organization which elects to make payments in lieu of contributions into the Unemployment Compensation Fund as provided in this subsection shall not be liable to make such payments with respect to the 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 Compensation Fund is reimbursed for such benefits pursuant to section 121 of Public Law 94-566. ((f) added July 6, 1977, P.L.41, No.22)

(1105 added Sept. 27, 1971, P.L.460, No.108)

Section 1106.  Reimbursement Payments.--Payments in lieu of contributions shall be made in accordance with the following provisions of this section.

(a)  At the end of each calendar quarter or at the end of any other period as determined by the department, the department shall bill each nonprofit organization (or group of such organizations) which has elected to make payments in lieu of contributions for the amount of benefits charged to its account during such quarter or other prescribed period that is attributable to service in the employ of such organization.

(b)  Payment of any bill rendered under subsection (a) shall be made not later than thirty days after such bill was mailed to the last known address of the nonprofit organization or was otherwise delivered to it, unless there has been an application for review and redetermination under section 301 of this act.

(c)  Past due payments of amounts in lieu of contributions, or reports with respect thereto, shall be subject to the same interest and penalties that, pursuant to section 308 of this act apply to past due contributions and section 206 of this act apply to past due reports.

(d)  Any nonprofit organization that elects to become liable for payments in lieu of contributions shall be required within thirty (30) days after the effective date of its election, to execute and file with the department a surety bond approved by the department or it may elect instead to deposit with the department money or securities of equal present monetary value.

The amount of the bond or deposit required by the department shall be set at one per centum of the organization's taxable wages for the most recent four calendar quarters prior to such election. If an organization did not pay wages throughout the specific four calendar quarters, the amount of the bond or deposit shall be set by the department. Refunds of deposits shall be made by the department according to appropriate rules and regulations developed by the department relative to termination of election for payments in lieu of contributions or as to delinquencies in payments due.

((d) amended July 9, 1976, P.L.842, No.147)

(1106 added Sept. 27, 1971, P.L.460, No.108)

Section 1107.  Termination of Elections.--(a)  Any nonprofit organization which has made an election pursuant to the provisions of section 1104 and section 1105 may terminate such election by filing with the department a written notice thereof not later than thirty days prior to the beginning of the taxable year for which such termination notice is to be effective. Such action shall be approved by the department only if all payments and reports have been made by such terminating organization as required by the provisions of this act.

(b)  If any nonprofit organization is delinquent in making payments in lieu of contributions as required under section 1106 of this act, the department may terminate such organization's election to make payments in lieu of contributions as of the beginning of the next taxable year and such termination shall be effective for that and the next taxable year.

(1107 added Sept. 27, 1971, P.L.460, No.108)

Section 1108.  Allocation of Benefit Costs.--If benefits paid to an individual are based on wages paid by more than one employer and one or more of such employers are liable for payments in lieu of contributions, the amount payable to the Unemployment Compensation Fund by each employer that is liable for such payments shall be determined in accordance with the provisions of this section.

(a)  If benefits paid to an individual are based on wages paid by one or more employers that are liable for payments in lieu of contributions and on wages paid by one or more employers who are liable for contributions, the amount of benefits payable by each employer that is liable for payments in lieu of contributions shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base-year wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of his base-period employers.

(b)  If benefits paid to an individual are based on wages paid by two or more employers that are liable for payments in lieu of contributions, the amount of benefits payable by each such employer shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of his base-period employers.

(1108 added Sept. 27, 1971, P.L.460, No.108)

Section 1109.  Group Accounts.--Two or more employers that have become liable for payments in lieu of contributions, in accordance with the provisions of section 1104 of this act, may file a joint application with the department for the establishment of a group account for the purpose of sharing the cost of benefits paid that are attributable to service in the employ of such employers. Each application shall identify and authorize a group representative to act as the group's agent for the purposes of this section. Upon its approval of the application, the department shall establish a group account for such employers effective as of the beginning of the calendar quarter in which it receives the application and shall notify the group's representative of the effective date of the account. Such account shall remain in effect for not less than two years and thereafter until terminated at the discretion of the department or upon application by the group. Upon establishment of the account, each member of the group shall be liable for payments in lieu of contributions with respect to each calendar quarter in the amount that bears the same ratio to the total benefits paid in such quarter that are attributable to service performed in the employ of all members of the group as the total wages paid for service in employment by such member in such quarter bear to the total wages paid during such quarter for services performed in the employ of all members of the group. The department shall prescribe such regulations as it deems necessary with respect to applications for establishment, maintenance and termination of group accounts that are authorized by this section, for addition of new members to, and withdrawal of active members from, such accounts, and for the determination of the amounts that are payable under this section by members of the group and the time and manner of such payments.

(1109 added Sept. 27, 1971, P.L.460, No.108)

Section 1110.  No Offset of Benefits.--Payments made by any nonprofit organization under the provisions of this article shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.

(1110 added Sept. 27, 1971, P.L.460, No.108)

 

ARTICLE XII



EMPLOYES OF POLITICAL SUBDIVISIONS

(Article Heading added Sept. 27, 1971, P.L.460, No.108)

 

Section 1201.  Political Subdivision Employes.--(a)  Service performed after December 31, 1977, in the employ of any of the instrumentalities or any political subdivision of this Commonwealth or any of its instrumentalities or any instrumentality of more than one of the foregoing or any instrumentality which is jointly owned by this Commonwealth or a political subdivision thereof and one or more other states or political subdivisions of this or other states provided that such service is excluded from "employment" as defined in the Federal Unemployment Tax Act by section 3306(c)(7) of that act and is not excluded from "employment" under section 4(l)(4) of this act, shall be deemed to constitute employment subject to this act with the exceptions hereinafter set forth in section 1201(b).



(b)  (1)  Elected officials.

(2)  Inmates of custodial or penal institutions who receive compensation for services rendered therein.

(3)  All department heads and members of boards and commissions, appointed by the Governor with or without the consent of one or both branches of the General Assembly.

(4)  Members of a legislative body, or members of the judiciary, of the Commonwealth or a political subdivision.

(5)  Individuals employed as part of any 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.

(6)  Students employed as defined in section 4(l)(4)(10)(B) and (C).

(7)  Members of the State National Guard or Air National Guard.

(8)  Employes serving on a temporary basis in case of fire, storm, snow, earthquake, flood or similar emergency.

(9)  Individuals serving in positions which, under or pursuant to the laws of this Commonwealth, are designated as (i) a major nontenured policymaking or advisory position, or (ii) a policymaking position the performance of the duties of which ordinarily does not require more than eight hours per week.

(c)  An authority instituted by a borough, city, county, school district, town or township, or by two or more of such subdivisions of the Commonwealth, as a separate governmental entity at the local government level shall be deemed, for purposes of this article, a separate political subdivision. ((c) added Dec. 22, 1977, P.L.353, No.107)

(1201 amended July 6, 1977, P.L.41, No.22)

Section 1202.  Contributions.--(1202 deleted July 6, 1977, P.L.41, No.22)

Section 1202.1.  Liability for Contributions.--Any political subdivision of the Commonwealth or any instrumentality of any one or more thereof, which is or becomes subject to this act shall pay contributions on remuneration paid by it for employment under the provisions of section 301, 301.1, 301.2 or 301.6, as the case may be, unless an election is made to pay on a reimbursement basis as hereinafter provided.

(1202.1 amended July 21, 1983, P.L.68, No.30)

Section 1202.2.  Election of Reimbursement.--(a)  Any political subdivision of the Commonwealth or any instrumentality of one or more thereof, which on or after January 1, 1978 and prior to January 1, 1979 is or becomes liable to the contribution provisions of the act may, in lieu of payment of such contributions, elect to pay to the department for the Unemployment Compensation Fund, an amount equal to the amount of regular benefits and of one-half of the extended benefits paid, (after December 31, 1978 the full amount of extended benefits paid) that is attributable to service in the employ of such political subdivision of the Commonwealth or any instrumentality of one or more thereof. Such employer shall continue to be liable for reimbursement of benefit payments based on wages paid prior to the termination date of such election.

(b)  Such election shall be for a period of not less than two taxable years unless sooner terminated by the department as hereinafter provided.

(1202.2 added July 6, 1977, P.L.41, No.22)

Section 1202.3.  Method of Election.--(a)  Any political subdivision of the Commonwealth or any instrumentality of any one or more thereof, which is or becomes subject to this act prior to January 1, 1978, may exercise its election under the provisions of section 1202.2 by filing with the department a written notice of such election within the thirty-day period following such date.

(b)  Any political subdivision of the Commonwealth or any instrumentality of any one or more thereof, which becomes subject to this act on or subsequent to January 1, 1978, may exercise its election under section 1202.2 by filing a written notice thereof with the department within the thirty-day period immediately following the date of the determination of such subjectivity by the department.

(c)  Any political subdivision of the Commonwealth or any instrumentality of any one or more thereof, paying contributions under this act for a period subsequent to January 1, 1978, may exercise its election under section 1202.2 by filing a written notice thereof, with the department not later than thirty days prior to the beginning of any taxable year.

(d)  The department may for good cause extend the period within which a notice of election or a notice of termination must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid after December 31, 1977.

(e)  The department, in accordance with such regulations as it may prescribe, shall notify each political subdivision of the Commonwealth or any instrumentality of any one or more thereof, of any determination which it may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Such determinations shall be subject to reconsideration, appeal and review as provided in section 301.

(1202.3 added July 6, 1977, P.L.41, No.22)

Section 1202.4.  Reimbursement Payments.--Payments in lieu of contributions shall be made in accordance with the following provisions of this section.

(a)  At the end of each calendar quarter or at the end of any other period as determined by the department, the department shall bill each political subdivision of the Commonwealth or any instrumentality of any one or more thereof (or group of political entities) which has elected to make payments in lieu of contributions for the amount of benefits charged to its account during such quarter or other prescribed period that is attributable to service in the employ of such organization.

(b)  Payment of any bill rendered under subsection (a) shall be made not later than thirty days after such bill was mailed to the last known address of the political subdivision or any instrumentality of any one or more thereof, or was otherwise delivered to it, unless there has been an application for review and redetermination under section 301.

(c)  Past due payments of amounts in lieu of contributions, or reports with respect thereto, shall be subject to the same interest and penalties that, pursuant to section 308 apply to past due contributions and section 206 apply to past due reports.

(1202.4 added July 6, 1977, P.L.41, No.22)

Section 1202.5.  Termination of Elections.--(a)  Any political subdivision of the Commonwealth or any instrumentality of any one or more thereof, which has made an election pursuant to the provisions of sections 1202.1 and 1202.2 may terminate such election by filing with the department a written notice thereof not later than thirty days prior to the beginning of the taxable year for which such termination notice is to be effective. Such action shall be approved by the department only if all payments and reports have been made by such terminating organization as required by the provisions of this act.

(b)  If any political subdivision of the Commonwealth or any instrumentality of any one or more thereof, is delinquent in making payments in lieu of contributions as required under section 1202.4, the department may terminate such election to make payments in lieu of contributions as of the beginning of the next taxable year and such termination shall be effective for that and the next taxable year.

(1202.5 added July 6, 1977, P.L.41, No.22)

Section 1203.  Allocation; Group Accounts.--The provisions of section 1108 and section 1109 of this act are applicable to payments made by political subdivisions or instrumentalities thereof.

(1203 added Sept. 27, 1971, P.L.460, No.108)

Section 1204.  No Offset of Benefits.--Payments made by a political subdivision or instrumentality thereof under the provisions of this article shall not be deducted in whole or in part from the remuneration of individuals in the employ of the political subdivision or instrumentality.

(1204 added Sept. 27, 1971, P.L.460, No.108)

ARTICLE XIII

SHARED-WORK PROGRAM

(Art. added June 20, 2011, P.L.16, No.6)

 

Section 1301.  Definitions.



The following words and phrases when used in this act shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Affected unit."  A department, shift or other organizational unit of two or more employees that is designated by an employer to participate in a shared-work plan.

"Approved shared-work plan."  An employer's shared-work plan which meets the requirements of section 1303 and which the department approves in writing.

"Fringe benefit."  (Def. deleted by amendment)

"Participating employee."  An employee in the affected unit whose hours of work are reduced by the reduction percentage under the shared-work plan.

"Participating employer."  An employer who has a shared-work plan in effect.

"Reduction percentage."  The percentage by which each participating employee's normal weekly hours of work are reduced under a shared-work plan in accordance with section 1303(b).

"Shared-work plan."  A plan for reducing unemployment under which participating employees of an affected unit share the work remaining after reduction in their normal weekly hours of work.

(1301 amended Oct. 23, 2013, P.L.637, No.75)

Section 1302.  Application to approve shared-work plan.

(a)  Requirements.--An employer that meets all of the following requirements may apply to the department for approval of a shared-work plan:

(1)  The employer has filed all quarterly reports and other reports required under this act and has paid all contribution, reimbursement, interest and penalty due through the date of the employer's application.

(2)  If the employer is contributory, the employer's reserve account balance as of the most recent computation date preceding the date of the employer's application is a positive number.

(3)  The employer has paid wages for the 12 consecutive calendar quarters preceding the date of the employer's application.

(b)  Application.--An application under this section shall be made in the manner prescribed by the department and contain all information required by the department, including the following:

(1)  The employer's written plan, describing the manner in which the requirements of this article will be implemented, including a plan for giving advance notice, where feasible, to participating employees whose hours of work are reduced, an estimate of the number of layoffs that would have occurred in the absence of the employer's shared-work plan and other information required by the department and the United States Department of Labor.

(1.1)  The employer's assurance that it will provide reports to the department relating to the operation of its shared-work plan at the times and in the manner prescribed by the department and containing all information required by the department, including the number of hours worked each week by participating employees.

(2)  The employer's assurance that it will not hire new employees in or transfer employees to the affected unit during the effective period of the shared-work plan.

(3)  The employer's assurance that it will not lay off participating employees during the effective period of the shared-work plan, or reduce participating employees' hours of work by more than the reduction percentage during the effective period of the shared-work plan, except in cases of holidays, designated vacation periods, equipment maintenance or similar circumstances.

(4)  A list of the week or weeks within the requested effective period of the shared-work plan during which participating employees are anticipated to work fewer hours than the number of hours determined under section 1303(a)(5) due to circumstances included in paragraph (3).

(5)  The employer's certification that the implementation of a shared-work plan is in lieu of layoffs that would affect at least 10% of the employees in the affected unit and would result in an equivalent reduction in work hours.

(6)  The employer's assurance that it will abide by all terms and conditions of this article.

(7)  The employer's attestation that its implementation of the shared-work plan is consistent with the employer's obligations under Federal and State law.

(8)  If the employer provides health benefits and retirement benefits under a defined benefit plan as defined in section 414(j) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 414(j)), or contributions under a defined contribution plan as defined in section 414(i) of the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C. § 414(i)), to a participating employee whose hours of work are reduced under the shared-work plan, the employer's certification that the benefits will continue to be provided to participating employees under the same terms and conditions as though the hours of work of the employees had not been reduced or to the same extent as other employees not participating in the shared-work plan.

(c)  Multiple shared-work plans.--An employer may apply to the department for approval of more than one shared-work plan.

(1302 amended Oct. 23, 2013, P.L.637, No.75)

Section 1303.  Shared-work plan requirements.

(a)  General rule.--The department may approve a shared-work plan only if the plan meets all of the following requirements:

(1)  The shared-work plan applies to one affected unit.

(2)  All employees in the affected unit are participating employees, except that the following employees may not be participating employees:

(i)  An employee who has been employed in the affected unit for less than three months prior to the date the employer applies for approval of the shared-work plan.

(i.1)  An employee in the affected unit who is employed on a seasonal, temporary or intermittent basis.

(ii)  An employee whose hours of work per week determined under paragraph (5) is 40 or more hours.

(3)  There are no fewer than two participating employees, determined without regard to corporate officers.

(4)  The participating employees are identified by name and Social Security number.

(5)  The number of hours a participating employee will work each week during the effective period of the shared-work plan is determined by the following formula:

employee's normal weekly hours of

work x (100% - reduction percentage)

(6)  As a result of a decrease in the number of hours worked by each participating employee, there is a corresponding reduction in wages.

(7)  If any participating employee is covered by a collective bargaining agreement, the shared-work plan is approved in writing by the collective bargaining representative.

(8)  ((8) deleted by amendment)

(9)  The effective period of the shared-work plan is not more than 52 consecutive weeks.

(10)  The effective period of the shared-work plan combined with effective periods of the participating employer's prior shared-work plans does not equal more than 104 weeks out of a 156-week period.

(11)  The reduction percentage satisfies the requirements of subsection (b).

(b)  Reduction percentage.--The reduction percentage under an approved shared-work plan shall meet all of the following requirements:

(1)  The reduction percentage shall be no less than 20% and no more than 40%.

(2)  The reduction percentage shall be the same for all participating employees.

(3)  The reduction percentage shall not change during the period of the shared-work plan unless the plan is modified in accordance with section 1308.

(1303 amended Oct. 23, 2013, P.L.637, No.75)

Section 1304.  Approval or disapproval of shared-work plan.

The department shall approve or disapprove a shared-work plan no later than 15 days after the date the employer's shared-work plan application that meets the requirements of section 1302(b) is received by the department. The department's decision shall be made in writing and, if the shared-work plan is disapproved, shall include the reasons for the disapproval.

(1304 added June 20, 2011, P.L.16, No.6)

Section 1305.  Effective period of shared-work plan.

(a)  Number of weeks.--A shared-work plan is effective for the number of consecutive weeks indicated in the employer's application, or a lesser number of weeks as approved by the department, unless sooner terminated in accordance with section 1309.

(b)  Start date.--The effective period of the shared-work plan shall begin with the first calendar week following the date on which the department approves the plan.

(1305 added June 20, 2011, P.L.16, No.6)

Section 1306.  Criteria for compensation.

(a)  General rule.--Compensation shall be payable to a participating employee for a week within the effective period of an approved shared-work plan during which the employee works the number of hours determined under section 1303(a)(5) for the participating employer on the same terms, in the same amount and subject to the same conditions that would apply to the participating employee without regard to this article, except as follows:

(1)  A participating employee shall not be required to be unemployed within the meaning of section 4(u) or file claims for compensation under section 401(c).

(2)  Notwithstanding section 404(d)(1), a participating employee shall be paid compensation in an amount equal to the product of his weekly benefit rate and the reduction percentage, rounded to the next lower whole dollar amount.

(3)  The department shall not deny compensation to a participating employee for any week during the effective period of the shared-work plan by reason of the application of any provision of this act relating to active search for work or refusal to apply for or accept work other than work offered by the participating employer.

(4)  A participating employee satisfies the requirements of section 401(d)(1) if the employee is able to work and is available for the employee's normal weekly hours of work with the participating employer.

(b)  Equivalent remuneration.--For purposes of subsection (a), if a participating employee works fewer hours than the number of hours determined under section 1303(a)(5) for the participating employer during a week within the effective period of the approved shared-work plan but receives remuneration equal to remuneration the employee would have received if the employee had worked the number of hours determined under section 1303(a)(5), the employee will be deemed to have worked the number of hours determined under section 1303(a)(5) during that week.

(c)  Inapplicability of article.--A participating employee's eligibility for compensation for a week within the effective period of an approved shared-work plan shall be determined without regard to this article under any of the following circumstances:

(1)  The employee works fewer hours than the number of hours determined under section 1303(a)(5) for the participating employer during the week and subsection (b) does not apply.

(2)  The employee works more hours than the number of hours determined under section 1303(a)(5) for the participating employer during the week.

(3)  The employee receives remuneration for the week from the participating employer for hours in excess of the number of hours determined under section 1303(a)(5).

(1306 added June 20, 2011, P.L.16, No.6)

Section 1307.  Participating employer responsibilities.

(a)  Filing claims.--The department shall establish a schedule of consecutive two-week periods within the effective period of the shared-work plan. The department may, as necessary, include one-week periods in the schedule and revise the schedule. At the end of each scheduled period, the participating employer shall file claims for compensation for the week or weeks within the period on behalf of the participating employees. The claims shall be filed no later than the last day of the week immediately following the period, unless an extension of time is granted by the department for good cause. The claims shall be filed in the manner prescribed by the department and shall contain all information required by the department to determine the eligibility of the participating employees for compensation.

(b)  Benefit charges.--Notwithstanding any other provision of this act, compensation paid to participating employees for weeks within the effective period of an approved shared-work plan will be charged to the participating employer.

(1307 added June 20, 2011, P.L.16, No.6)

Section 1308.  Modification of an approved shared-work plan.

An employer may apply to the department for approval to modify an approved shared-work plan to meet changed conditions. The department shall reevaluate the plan and may approve the modified plan if it meets the requirements for approval under section 1303. If the modifications cause the shared-work plan to fail to meet the requirements for approval, the department shall disapprove the proposed modifications.

(1308 added June 20, 2011, P.L.16, No.6)

Section 1309.  Termination of approved shared-work plan.

(a)  General rule.--The secretary may terminate an approved shared-work plan for good cause.

(b)  Good cause.--For purposes of subsection (a), good cause includes any of the following:

(1)  The approved shared-work plan is not being executed according to its approved terms and conditions.

(2)  The participating employer fails to comply with the assurances given in the approved shared-work plan.

(3)  The participating employer or a participating employee violates any criteria on which approval of the shared-work plan was based.

(c)  Termination by employer.--The employer may terminate an approved shared-work plan by written notice to the department.

(1309 added June 20, 2011, P.L.16, No.6)

Section 1310.  Department discretion.

The decision to approve or disapprove a shared-work plan, to approve or disapprove a modification of an approved shared-work plan or to terminate an approved shared-work plan will be made within the department's discretion. Such decisions are not subject to the appeal provisions of Article V.

(1310 added June 20, 2011, P.L.16, No.6)

Section 1311.  Publication of notice.

The department shall transmit to the Legislative Reference Bureau for publication in the Pennsylvania Bulletin notice that the provisions of this article have been approved by the United States Department of Labor as required under section 3304(a)(4)(E) of the Federal Unemployment Tax Act (Public Law 86-778, 26 U.S.C. § 3304(a)(4)(E)) and section 303(a)(5) of the Social Security Act (49 Stat. 620, 42 U.S.C. § 503(a)(5)).

(1311 added June 20, 2011, P.L.16, No.6)

Section 1312.  Severability.

Notwithstanding any other section of this act, if any provision or provisions of this article cause the United States Department of Labor to withhold approval of this article as required under section 3304(a)(4)(E) of the Federal Unemployment Tax Act (Public Law 86-778, 26 U.S.C. § 3304(a)(4)(E)) and section 303(a)(5) of the Social Security Act (49 Stat. 620, 42 U.S.C. § 503(a)(5)), the department is authorized to permanently suspend the provision or provisions.

(1312 added June 20, 2011, P.L.16, No.6)

Section 1313.  Expiration. (1313 deleted by amendment Oct. 23, 2013, P.L.637, No.75)

ARTICLE XIV

UNEMPLOYMENT COMPENSATION BONDS

(Art. XIV added June 12, 2012, P.L.577, No.60)

 

Section 1401.  Definitions.



The following words and phrases, when used in this article, shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Authority."  The Pennsylvania Economic Development Financing Authority.

"Bond."  Any type of revenue obligation, including a bond or series of bonds, note, certificate or other instrument, issued by the authority for the benefit of the department under this article.

"Bond administrative expenses."  Expenses incurred to administer bonds as provided under the act of August 23, 1967 (P.L.251, No.102), known as the Economic Development Financing Law, or as otherwise necessary to ensure compliance with applicable Federal or State law.

"Bond obligations."  The principal of a bond and any premium and interest payable on a bond, together with any amount owed under a related credit agreement or a related resolution of the financing authority authorizing a bond.

"Credit agreement."  A loan agreement, a revolving credit agreement, an agreement establishing a line of credit, a letter of credit or another agreement that enhances the marketability, security or creditworthiness of a bond.

"Debt Service Fund."  The fund established under section 601.2.

"Federal advances."  Loans by the Federal Government to the Commonwealth for the payment of compensation under Title XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321 et seq.) or any similar Federal law.

"Financing Law."  The act of August 23, 1967 (P.L.251, No.102), known as the Economic Development Financing Law.

(1401 added June 12, 2012, P.L.577, No.60)

Section 1402.  Bond issuance.

(a)  Declaration of policy.--The General Assembly finds and declares that funding the payment of compensation or the repayment of previous Federal advances, including interest, through the authority, is in the best interest of the Commonwealth.

(b)  Authority.--Notwithstanding any other law, the following shall apply:

(1)  The department may be a project applicant under the Financing Law and may apply to the authority for the funding of compensation or repayment of Federal advances and interest due on them.

(2)  The funding of compensation or repayment of Federal advances and interest due on them shall constitute a project for purposes of the Financing Law.

(3)  The authority may issue bonds under the Financing Law, consistent with this article, to finance a project consisting of the funding of compensation or repayment of Federal advances and interest due on them or refunding or redeeming of prior bonds.

(4)  Participation of an industrial and commercial development authority is not required to finance the payment of compensation or repayment of Federal advances and interest due on them.

(c)  Debt or liability.--

(1)  Bonds issued under this article shall not be a debt or liability of the Commonwealth and shall not create or constitute any indebtedness, liability or obligation of the Commonwealth.

(2)  Bond obligations and bond administrative expenses shall be payable solely from revenues or funds pledged or available for their repayment as authorized in this article. This paragraph includes the proceeds of any issuance of bonds.

(3)  Each bond must contain on its face a statement that:

(i)  the authority is obligated to pay the principal of the bond or the interest on the bond only from funds made available under this article;

(ii)  neither the Commonwealth nor a political subdivision is obligated to pay the principal or interest; and

(iii)  the full faith and credit of the Commonwealth is not pledged to the payment of the principal of or the interest on the bonds.

(1402 added June 12, 2012, P.L.577, No.60)

Section 1403.  Criteria for bond issuance.

(a)  Determination.--If the department reasonably expects that the issuance of bonds to obtain funds to pay compensation or to repay Federal advances, including interest, would result in a savings to employers in this Commonwealth, as an alternative to borrowing by means of Federal advances or repayment of the Federal advances and interest by other means, the department, with approval by the Office of the Budget, may apply to the authority to issue bonds for its benefit under section 1402(b).

(b)  Terms.--

(1)  The department, with the approval of the Office of the Budget, shall specify in its application to the authority:

(i)  the maximum principal amount of the bonds for each separate bond issue; and

(ii)  the maximum term of the bonds, not to exceed 20 years.

(2)  The total principal amount of bonds outstanding under this article for all bond issues may not exceed $4,500,000,000.

(1403 added June 12, 2012, P.L.577, No.60)

Section 1404.  Issuance of bonds and security.

(a)  Issuance.--The authority shall consider issuance of bonds upon application by the department. Bonds issued under this article shall be subject to the provisions of the Financing Law, unless otherwise specified by this article.

(b)  Agreements.--The authority and the department may enter into loan agreements, credit agreements, bond purchase agreements and other contracts, instruments and agreements in connection with the bonds in order to effectuate the purposes of the Financing Law and this article.

(c)  Security.--The bond obligations and bond administrative expenses are secured, for the benefit of the holders of the bonds and the obligees under any agreements in subsection (b), by pledge of, security interest in and first lien on all of the following:

(1)  Additional contributions collected under section 301.6.

(2)  Moneys on deposit in the Debt Service Fund. This paragraph includes all investment income on those moneys.

(3)  All moneys relating to the bonds held on deposit in any other fund or account under an instrument or agreement pertaining to the bonds. This paragraph includes bond reserves and interest income on the moneys.

The security provided in this subsection does not apply to moneys in any fund or account related to arbitrage rebate obligations.

(1404 added June 12, 2012, P.L.577, No.60)

Section 1405.  Sale of bonds.

The sale of bonds issued under this article shall be subject to the following:

(1)  The authority shall give first consideration to issuing the bonds by means of a public, competitive sale at not less than 98% of the principal amount and accrued interest to the highest bidders. The authority shall publicly advertise the sale. The manner and times of advertising shall be prescribed by the authority.

(2)  If, in the judgment of the authority, a public, competitive sale will not produce the most benefit to employers and the Commonwealth, the authority shall adopt a resolution setting forth in detail the reasons for this determination. A copy of the resolution shall be transmitted to the Governor, the chairman and minority chairman of the Labor and Industry Committee of the Senate and the chairman and minority chairman of the Labor and Industry Committee of the House of Representatives. After adoption of the resolution, the authority shall have the option to pursue a negotiated sale.

(1405 added June 12, 2012, P.L.577, No.60)

Section 1406.  Use of bond proceeds.

(a)  Order.--Upon issuance of bonds, the proceeds shall be applied in the following order:

(1)  pay the costs of issuance of the bonds;

(2)  fund bond reserves;

(3)  deposit in an appropriate fund moneys to pay capitalized interest on the bonds for the period determined by the department, not to exceed two years;

(4)  refund outstanding bonds, if applicable;

(5)  make any other deposit required under any instrument or agreement pertaining to the bonds;

(6)  repay the principal and interest of Federal advances; and

(7)  deposit any balance into an unemployment compensation program fund under any instrument or agreement relating to the bonds.

(b)  Application of balance.--The bond proceeds deposited under subsection (a)(7) shall be applied as directed by the department to do one or more of the following:

(1)  Repay the principal and interest of previous Federal advances.

(2)  Pay unemployment compensation benefits.

(3)  Pay bond administrative expenses.

(4)  Redeem or purchase outstanding bonds.

(5)  Pay bond obligations.

(1406 added June 12, 2012, P.L.577, No.60)

Section 1407.  Payment of bond-related obligations.

(a)  Notification.--For each calendar year in which bond obligations and bond administrative expenses will be due, the authority shall notify the department of the amount of bond obligations and the estimated amount of bond administrative expenses in sufficient time, as determined by the department, to permit the department to determine the amount of additional contributions under section 301.6 required for that year, for deposit into the Debt Service Fund. The authority's calculation of the amount of bond obligations and bond administrative expenses that will be due is subject to verification by the department.

(b)  Transfer.--Moneys in the Debt Service Fund that are needed to pay bond obligations and bond administrative expenses or to replenish bond reserves shall be transferred to the authority to ensure timely payment of bond obligations and bond administrative expenses and timely replenishment of bond reserves under any instrument or agreement related to the bonds.

(c)  Deficiency in Debt Service Fund.--If there is a deficiency in the Debt Service Fund and to the extent permitted by law, that part of the principal owed on bonds which 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 interest or administrative costs associated with the bonds, may be paid from the Unemployment Compensation Fund.

(1407 added June 12, 2012, P.L.577, No.60)

Section 1408.  Commonwealth not to impair bond-related obligations.

The Commonwealth pledges that it shall not do any of the following:

(1)  Limit or alter the rights and responsibilities of the authority or the department under this article, including the responsibility to:

(i)  pay bond obligations and bond administrative expenses; and

(ii)  comply with any other instrument or agreement pertaining to bonds.

(2)  Alter or limit the security interest granted in section 1404(c).

(3)  Impair the rights and remedies of the holders of bonds, until all bonds at any time issued, together with the interest thereon, are fully met and discharged.

(1408 added June 12, 2012, P.L.577, No.60)

Section 1409.  No personal liability.

The members, directors, officers and employees of the department and the authority are not personally liable as a result of good faith exercise of the rights and responsibilities granted under this article.

(1409 added June 12, 2012, P.L.577, No.60)

Section 1410.  Expiration.

The authority to issue bonds other than refinancing and refunding bonds under sections 1402 and 1404 shall expire December 31, 2016.

(1410 added June 12, 2012, P.L.577, No.60)

Section 1411.  Annual report required.

No later than March 1 of the year following the first full year in which bonds have been issued under this article and for each year thereafter in which bond obligations existed in the prior year, the department shall submit an annual report to the chairman and minority chairman of the Labor and Industry Committee of the Senate and to the chairman and minority chairman of the Labor and Industry Committee of the House of Representatives providing all data available on bonds issued or existing in the prior year. The report shall include, but not be limited to, existing and anticipated bond principal, interest and administrative costs, revenue, repayments, refinancing, overall benefits, including any savings to employers and any other relevant data, facts and statistics that the department believes necessary in the content of the report.

(1411 added June 12, 2012, P.L.577, No.60)

ARTICLE XV

UNEMPLOYMENT COMPENSATION AMNESTY PROGRAM

(Art. XV added June 12, 2012, P.L.577, No.60)

 

Section 1501.  Definitions.



The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise:

"Amnesty period."  The period of three consecutive calendar months designated by the Department of Labor and Industry that commences no later than 360 days after the effective date of this section.

"Employee information."  The name and Social Security number of each employee, the amount of wages paid to each employee and the number of credit weeks for each employee in each calendar quarter.

"Interest."  Monetary obligations imposed under sections 308 and 804(a).

"Penalties."  Monetary obligations imposed under sections 206(d) and 313.

"Penalty weeks."  Weeks for which an individual is disqualified from receiving compensation under section 801(b).

"Program."  The Unemployment Compensation Amnesty Program established under this article.

(1501 added June 12, 2012, P.L.577, No.60)

Section 1502.  Program established.

There is established an Unemployment Compensation Amnesty Program in accordance with the provisions of this article.

(1502 added June 12, 2012, P.L.577, No.60)

Section 1503.  Applicability.

(a)  Employer liabilities.--Except as provided in subsections (c) and (d), the program shall apply to the following unemployment compensation employer liabilities:

(1)  Unpaid contributions due for calendar quarters through the first quarter of 2012, for which the employer reported the employee information or the department acquired the employee information through an audit.

(2)  Unpaid contributions due for calendar quarters through the first quarter of 2012, for which the employer did not report the employee information and the department did not acquire the employee information through an audit.

(3)  Unpaid reimbursement due on or before April 30, 2012.

(4)  Unpaid interest due on contributions paid late for calendar quarters through the first quarter of 2012 or on reimbursement that was due on or before April 30, 2012, and was paid late.

(5)  Unpaid penalties due for reports filed late for calendar quarters through the first quarter of 2012.

(b)  Claimant liabilities.--Except as provided in subsections (c) and (d), the program shall apply to the following unemployment compensation claimant liabilities:

(1)  A fault overpayment of compensation under section 804(a) established pursuant to a notice of determination of overpayment issued by the department on or before June 30, 2012, to the extent repayment has not occurred.

(2)  A nonfault overpayment of compensation under section 804(b)(1) established pursuant to a notice of determination of overpayment issued by the department on or before June 30, 2012, to the extent repayment has not occurred.

(3)  Compensation paid to a claimant for calendar weeks through the week ending June 30, 2012, for which the department has not issued a notice of determination of overpayment, but the claimant acknowledges that the compensation was overpaid under circumstances to which section 804(a) applies.

(4)  Unpaid interest due on an overpayment of compensation under section 804(a) that was repaid on or before June 30, 2012.

(c)  Excluded liabilities.--The following unemployment compensation liabilities are excluded from the program:

(1)  An overpayment of compensation established pursuant to a notice of determination of overpayment that has not become final.

(2)  An employer liability for which a petition for reassessment under section 304(b) or an application for review and redetermination of contribution rate under section 301(e)(2) is pending.

(d)  Further exclusions.--The department may exclude the following unemployment compensation liabilities from the program:

(1)  A liability for which a praecipe for a writ of execution was filed prior to receipt of the amnesty form.

(2)  A liability that was referred for judicial proceedings or for which a judicial proceeding was commenced prior to receipt of the amnesty form.

(3)  A liability that is required to be paid under an order of a Federal or State court.

(1503 added June 12, 2012, P.L.577, No.60)

Section 1504.  Procedure for participation.

To participate in the program, an employer or a claimant shall do the following:

(1)  During the amnesty period, the employer or claimant shall file an amnesty form with the department containing all information required by the department, including a statement by the employer or claimant acknowledging the provisions of section 1506(f). The form shall be filed in a manner specified in and the filing date of the form shall be determined by guidelines established by the department.

(2)  If an employer is seeking amnesty with regard to a liability described in section 1503(a)(2), the employer shall report the employee information by filing quarterly reports as required by regulations promulgated by the department for all calendar quarters for which the employer did not previously file reports and by filing amended quarterly reports for all calendar quarters for which the employer did not file complete reports. The quarterly reports shall accompany the amnesty form.

(3)  The employer or claimant shall pay the amount or amounts required by section 1505. Payment shall accompany the amnesty form.

(1504 added June 12, 2012, P.L.577, No.60)

Section 1505.  Required payment and terms of amnesty.

An employer or claimant shall pay the amount or amounts specified in this section that correspond to the liability or liabilities for which amnesty is sought. The department shall grant amnesty as provided in this section and section 1506.

(1)  If an employer is seeking amnesty with regard to unpaid contributions described in section 1503(a)(1) or (2):

(i)  The employer shall pay all of the unpaid contributions and lien filing costs, if applicable, and one-half of the interest and penalties due.

(ii)  The department shall waive the remaining interest and penalties due corresponding to the contributions.

(2)  If an employer is seeking amnesty with regard to unpaid reimbursement described in section 1503(a)(3):

(i)  The employer shall pay all of the unpaid reimbursement and lien filing costs, if applicable, and one-half of the interest due.

(ii)  The department shall waive the remaining interest due corresponding to the reimbursement.

(3)  If an employer is seeking amnesty with regard to unpaid interest described in section 1503(a)(4):

(i)  The employer shall pay all of the lien filing costs, if applicable, and one-half of the unpaid interest due.

(ii)  The department shall waive the remaining unpaid interest due.

(4)  If an employer is seeking amnesty with regard to unpaid penalties described in section 1503(a)(5):

(i)  The employer shall pay all of the lien filing costs, if applicable, and one-half of the unpaid penalties due.

(ii)  The department shall waive the remaining unpaid penalties due.

(5)  If a claimant is seeking amnesty with regard to an overpayment described in section 1503(b)(1) or (3):

(i)  The claimant shall pay the outstanding balance of the overpayment and lien filing costs, if applicable, and one-half of the interest due.

(ii)  The department shall waive the remaining interest due and one-half of any previously imposed penalty weeks corresponding to the overpayment that have not been served by the claimant and shall not issue a notice of determination imposing penalty weeks corresponding to the overpayment. If one-half of the unserved penalty weeks is not an even multiple of one, the number of penalty weeks waived shall be rounded to the next lower multiple of one.

(6)  If a claimant is seeking amnesty with regard to an overpayment described in section 1503(b)(2):

(i)  The claimant shall pay 50% of the outstanding balance of the overpayment.

(ii)  The department shall waive the remaining balance of the overpayment.

(7)  If a claimant is seeking amnesty with regard to unpaid interest described in section 1503(b)(4):

(i)  The claimant shall pay all of the lien filing costs, if applicable, and one-half of the interest due.

(ii)  The department shall waive the remaining unpaid interest due.

(1505 added June 12, 2012, P.L.577, No.60)

Section 1506.  Additional terms and conditions of amnesty.

(a)  General rule.--If a payment plan agreement exists between an employer or claimant and the department for a liability for which the employer or claimant is seeking amnesty, the employer or claimant shall pay the amount or amounts required by section 1505 during the amnesty period in order to receive amnesty, notwithstanding any terms of the agreement to the contrary.

(b)  Proceedings.--The department shall not commence any administrative or judicial proceeding against an employer with regard to any contributions, reimbursement, interest or penalty paid under the program, or any interest or penalties waived under the program. The department shall not commence any administrative or judicial proceeding against a claimant with regard to any overpayment or interest paid under the program or any overpayment or interest waived under the program.

(c)  Liabilities.--If a liability for contributions described in section 1503(a)(2) or liability for an overpayment described in section 1503(b)(3) is disclosed and paid under the program, and the department determines that the liability as disclosed was understated, the department may commence administrative or judicial proceedings and impose interest, penalties and other monetary obligations only with regard to the difference between the liability as disclosed and the correct amount of the liability.

(d)  Construction.--Except as provided in subsection (c), nothing in this article shall be construed to prohibit the department from commencing administrative or judicial proceedings and imposing interest, penalties and other monetary obligations with respect to any liability that is not disclosed under the program or any amount that is not paid under the program.

(e)  Refunds and credits.--An employer or claimant shall not be owed a refund or credit under this article for any amount paid prior to the amnesty period.

(f)  Restrictions.--An employer or claimant may not commence an administrative or judicial proceeding with regard to the amnesty form, any report filed in connection with the program, any liability disclosed under the program or any amount paid under the program, and shall not be owed a refund or credit for any amount paid under the program.

(1506 added June 12, 2012, P.L.577, No.60)

Section 1507.  Duties of department.

(a)  General rule.--The department shall establish guidelines to implement the provisions of this article and publish the guidelines as a notice in the Pennsylvania Bulletin no less than 90 days before the amnesty period begins.

(b)  Publicity.--The department shall publicize the program to maximize awareness of and participation in the program.

(c)  Notification.--The department shall notify all employers and claimants who are known to have liabilities to which the program applies. The notice shall be sent by mail to the employer's or claimant's last known post office address or by electronic transmission, if the employer or claimant has elected to receive communications from the department by that method.

(1507 added June 12, 2012, P.L.577, No.60)

Section 1508.  Construction.

Except as expressly provided in this article, this article shall not:

(1)  be construed to relieve any employer, claimant, individual or any entity from filing reports or other documents required by or paying any amounts due under this act;

(2)  affect or terminate any petitions, investigations, prosecutions or any other administrative or judicial proceedings pending under this act; or

(3)  prevent the commencement or further prosecution of any proceedings by the proper authorities of the Commonwealth for violation of any laws or for the assessment, collection or recovery of any amounts due to the Commonwealth under any laws.

(1508 added June 12, 2012, P.L.577, No.60)

Section 1509.  Suspension of inconsistent acts.

All acts or parts of acts inconsistent with the provisions of this article are suspended to the extent necessary to carry out the provisions of this article.

(1509 added June 12, 2012, P.L.577, No.60)

Section 1510.  Report required.

Within 240 days of the close of the amnesty period, the department shall submit a report to the chairman and minority chairman of the Labor and Industry Committee of the Senate and the chairman and minority chairman of the Labor and Industry Committee of the House of Representatives detailing all data available on the administration of the program, the cost of the program, amounts recovered from employers and claimants and any relevant facts and statistics that the department believes necessary in the content of the report.

(1510 added June 12, 2012, P.L.577, No.60)

 

 

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