"Riley Factor"

This article was featured in the January 2008 issue of Business Matters, our monthly print newsletter.

UC Reform Package Introduced

The House Republicans recently announced a legislative package aimed at reforming Pennsylvania’s unemployment compensation system.

Reps. Scott Hutchinson (R-Butler/Venango), Carl Mantz (R-Lehigh/Berks), Marguerite Quinn (R-Bucks), Bob Mensch (R-Montgomery), Mike Turzai (R-Allegheny), Brian Ellis (R-Butler) and Stan Saylor (R-York) are among those sponsoring legislation in the package.

Pennsylvania consistently ranks poorly when compared to other states’ employer taxes and taxes on employee wages.

The legislative package contains the following reforms:

• Permitting a referee to dismiss a case without receiving testimony or evidence on the merits of the case if the appellant fails to appear for the hearing.

• Further refining the law’s current ineligibility for benefits for voluntarily leaving work without a case of a necessitous and compelling nature by adding a provision that it also be a cause attributable to employment.

• Clarifying that a claimant is ineligible for benefits if his unemployment is due to “willful misconduct."

• Requiring unemployment compensation claimants to participate in job search programs.

• Changing the tax rate and benefit eligibility guidelines so they provide for definitions of “average working wage” and “suitable work," clarifies determination of contribution rate and experience rating and also provides for the qualifications required to secure compensation and for the rate and amount of compensation.

• Additionally requiring that the last employer and the separating employer be furnished a copy of any written statement provided by the claimant relating to his/her separation from employment, if the employer makes such a request in writing; the claimant would have the same right to any written statement provided by an employer.

The legislation has been endorsed by the National Federation of Independent Business, Pennsylvania Chamber of Business and Industry and the Pennsylvania Manufacturers’ Association.

Our Chamber supports unemployment compensation reform that will bring fairness to the system, will ensure that only workers with a legitimate attachment to the workforce are receiving benefits, and, will make us consistent and competitive with other states. We will be working with our state delegation to gain passage of this important reform package.

.