2025 Pennsylvania Consolidated & Unconsolidated Statutes
Act 55 - UNEMPLOYMENT COMPENSATION LAW - QUALIFICATIONS REQUIRED TO SECURE COMPENSATION, INELIGIBILITY FOR COMPENSATION, ELIGIBILITY RELATED TO DOMESTIC VIOLENCE AND RATE AND AMOUNT OF COMPENSATION

Session of 2025

No. 2025-55

 

HB 274

 

AN ACT

 

Amending the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), entitled "An act 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," in compensation, further providing for qualifications required to secure compensation and for ineligibility for compensation, providing for eligibility related to domestic violence and further providing for rate and amount of compensation.

 

The General Assembly of the Commonwealth of Pennsylvania hereby enacts as follows:

 

Section 1.  Sections 401(f) and 402(a) of the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment Compensation Law, are amended to read:

Section 401.  Qualifications Required to Secure Compensation.--Compensation shall be payable to any employe who is or becomes unemployed, and who--

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(f)  Has earned, subsequent to his separation from work under circumstances which are disqualifying under the provisions of subsections 402(b), 402(e), 402(e.1), 402(h) and 402(k) of this act, remuneration for services in an amount equal to or in excess of [six (6)] twelve (12) times his weekly benefit rate in "employment" as defined in this act. The provisions of this subsection shall not apply to a suspension of work by an individual pursuant to a leave of absence granted by his last employer, provided such individual has made a reasonable effort to return to work with such employer upon the expiration of his leave of absence.

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Section 402.  Ineligibility for Compensation.--An employe shall be ineligible for compensation for any week--

(a)  In which his unemployment is due to failure, without good cause, either to apply for suitable work at such time and in such manner as the department may prescribe, or to accept suitable work when offered to him by the employment office or by any employer, irrespective of whether or not such work is in "employment" as defined in this act: Provided, That such employer notifies the employment office of such offer within seven (7) days after the making thereof; however this subsection shall not cause a disqualification of a waiting week or benefits under the following circumstances: when work is offered by his employer and he is not required to accept the offer pursuant to the terms of the labor-management contract or agreement, or pursuant to an established employer plan, program or policy: Provided further, That a claimant shall not be disqualified for refusing suitable work when he is in training approved under section 236(a)(1) of the Trade Act of 1974[.]: Provided further, that the following apply:

(1)  A claimant shall make a good faith effort to obtain employment in suitable work. A claimant who has applied for a position may not take any action to unreasonably discourage the claimant's own hire in suitable work, including any of the following:

(i)  Refusing to attend or failing to participate, without good cause, in a job interview or other applicant selection activity offered by the employer.

(ii)  Refusing employment, or a referral for employment, without good cause, prior to an interview or a discussion of the details of a job with the employer.

(2)  Within ninety (90) days of the effective date of this clause, the department shall create forms or update existing forms to enable employers to report claimants who discourage their own hire, as provided in this subsection. The forms shall include notice of the provisions of section 802 of this act.

(3)  A claimant who unreasonably discourages the claimant's own hire in suitable work shall be considered to have refused an offer of work for purposes of this subsection.

(4)  Any overpayment that results from a disqualification under clause (1) shall be subject to section 804(b).

(5)  The department shall grant relief from charges under section 302.1 to base year employers for benefit charges related to a claim that is disqualified under clause (1). Relief from charges shall be provided without a request from the employer.

(6)  If an employer is granted relief from charges without a request under clause (5), the department shall notify the employer that relief from charges shall be granted without the need for the employer to submit a request. Notice under this clause may be included on the eligibility determination provided to the employer or on other relevant claim documentation delivered to the employer.

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Section 2.  The act is amended by adding a section to read:

Section 402.7.  Eligibility Related to Domestic Violence.--(a)  An employe shall not be deemed to be ineligible under section 402(b) for voluntarily leaving employment or section 402(e) for failure to attend work if, due to a domestic violence situation, the individual's continued employment would jeopardize the safety of the individual or a member of the individual's family or household.

(b)  Verification of a domestic violence situation may be provided on the initial application for benefits through any one of the following which documents recent domestic violence:

(1)  An active or recently issued protective order or other order, court records, a police record, medical treatment records, social services records or child protective services records.

(2)  A statement supporting the existence of recent domestic violence from a qualified professional from whom the individual has sought assistance, such as a counselor, shelter worker, member of the clergy, attorney or health care worker, or a similar statement from a friend or relative from whom the individual has sought assistance.

(3)  A self-affirmation that the individual's continued employment would jeopardize the safety of the individual or a member of the individual's family or household due to the domestic violence situation.

(4)  Any other type of evidence that reasonably proves domestic violence.

(c)  The documentation of domestic violence shall remain confidential, and the department may not disclose the existence of a domestic violence situation in any notice provided to an employer regarding the claim for compensation.

(d)  If an individual who verifies domestic violence under subsection (b) is otherwise eligible under section 401, the individual shall be considered eligible, and the department shall expedite a determination of eligibility under section 501.

(e)  An individual who submits a self-affirmation under subsection (b)(3) shall submit documentation of the domestic violence situation under subsection (b)(1), (2) or (4) to the department within one hundred fifty (150) days of the date of application. The department may, for good cause, excuse the requirements or extend the period in which documentation must be provided.

(f)  The department shall grant relief from charges under section 302.1 to base year employers for benefit charges related to a claim that is determined eligible in accordance with this section. Relief from charges shall be provided without a request from the employer.

(g)  Subject to subsection (c), if an employer is granted relief from charges without a request under subsection (f), the department shall notify the employer that relief from charges shall be granted without the need for the employer to submit a request. Notice under this subsection may be included on the eligibility determination provided to the employer or on other relevant claim documentation delivered to the employer.

Section 3.  Section 404(e)(2)(v) and (vi) of the act are amended to read:

Section 404.  Rate and Amount of Compensation.--Compensation shall be paid to each eligible employe in accordance with the following provisions of this section except that compensation payable with respect to weeks ending in benefit years which begin prior to the first day of January 1989 shall be paid on the basis of the provisions of this section in effect at the beginning of such benefit years.

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(e)  * * *

(2)  * * *

(v)  If, on July 1, [2025] 2028, the trigger percentage determined under section 301.7(a) is less than two hundred fifty per centum (250%), the following shall apply:

(A)  Notwithstanding the definition of "highest quarterly wages" in subsection (b), but subject to subclause (vi), "highest quarterly wages" for purposes of this section for calendar years [2026] 2029 and thereafter shall be the average of the total wages (computed to the nearest dollar), which were paid to the employe computed as follows:

(I)  The wages paid to the employe in that calendar quarter in which such total wages were highest during the base year shall be calculated.

(II)  The amount calculated under division (I) shall be added to an amount equal to one hundred thirty per centum (130%) of the wages paid to the employe in the calendar quarter in which such total wages were the second highest of any calendar quarter during the base year, provided that the amount added under this division (II) may not be greater than the wages paid to the employe during the highest calendar quarter under division (I).

(III)  The sum calculated under division (II) shall be divided by two.

(B)  Notwithstanding section 401(a)(2), and except as provided in subsections (a)(3) and (e)(1) and (2), section 401(a) shall require that the second entry in Part A of the table for the determination of rate and amount of benefits, on the line on which there appears the employe's weekly benefit rate, does not exceed sixty-three per centum (63%) of the employe's total base year wages.

(C)  Notwithstanding the application of an alternative calculation for "highest quarterly wages" required in this subclause, no employe shall be financially eligible for compensation if the employe's wages in the highest quarter of the employe's base year exceed sixty-three per centum (63%) of the employe's total base year wages.

(vi)  Notwithstanding the provisions of subsection (b) and subclause (v) if, on July 1, [2026] 2029, or July 1 of any subsequent year, the trigger percentage determined under section 301.7(a) is at least two hundred fifty per centum (250%), the following shall apply:

(A)  "Highest quarterly wages" for the subsequent calendar year and thereafter shall be determined as provided in subsection (b) and not as provided in subclause (v).

(B)  Section 401(a)(2) shall apply and not subclause (v)(B).

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Section 4.  The Department of Labor and Industry shall consult with the Office of Victim Advocate and relevant advocacy groups when implementing section 402.7 of the act, including updates to the application for unemployment compensation, updated notices to claimants and employers and the development of any forms related to documentation of a domestic violence situation.

Section 5.  This act shall take effect as follows:

(1)  The amendment of section 401(f) of the act shall take effect in one year.

(2)  Except as provided under paragraph (3), the amendment of section 404(e)(2)(v) and (vi) of the act shall take effect immediately.

(3)  The addition of section 404(e)(2)(v)(C) of the act shall take effect in three years.

(4)  This section shall take effect immediately.

(5)  The remainder of this act shall take effect in 60 days.

 

APPROVED--The 22nd day of December, A.D. 2025.

 

JOSH SHAPIRO