HB 1243 — An Act amending the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), known as the Unemployment Compensation Law, in preliminary provisions, further providing for definitions; in contributions by employers and employees, further providing for trigger determination and for trigger rate redeterminations; in compensation, further providing for qualifications required to secure compensation, for ineligibility for compensation and for rate and amount of compensation; in determination of compensation, appeals, reviews and procedure, further providing for determination of compensation appeals; in Unemployment Compensation Amnesty Program, further providing for definitions; and, in amnesty program, further providing for definitions.

PRINTER'S NO.     1392

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1243
                                               Session of
                                                 2025

     INTRODUCED BY HANBIDGE, GIRAL, McANDREW, MADDEN, WAXMAN, OTTEN,
        GUENST, HILL-EVANS, HOWARD, SANCHEZ AND WARREN,
        APRIL 17, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, APRIL 17, 2025


                                    AN ACT
 1   Amending the act of December 5, 1936 (2nd Sp.Sess., 1937
 2      P.L.2897, No.1), entitled "An act establishing a system of
 3      unemployment compensation to be administered by the
 4      Department of Labor and Industry and its existing and newly
 5      created agencies with personnel (with certain exceptions)
 6      selected on a civil service basis; requiring employers to
 7      keep records and make reports, and certain employers to pay
 8      contributions based on payrolls to provide moneys for the
 9      payment of compensation to certain unemployed persons;
10      providing procedure and administrative details for the
11      determination, payment and collection of such contributions
12      and the payment of such compensation; providing for
13      cooperation with the Federal Government and its agencies;
14      creating certain special funds in the custody of the State
15      Treasurer; and prescribing penalties," in preliminary
16      provisions, further providing for definitions; in
17      contributions by employers and employees, further providing
18      for trigger determination and for trigger rate
19      redeterminations; in compensation, further providing for
20      qualifications required to secure compensation, for
21      ineligibility for compensation and for rate and amount of
22      compensation; in determination of compensation, appeals,
23      reviews and procedure, further providing for determination of
24      compensation appeals; in Unemployment Compensation Amnesty
25      Program, further providing for definitions; and, in amnesty
26      program, further providing for definitions.
27      The General Assembly of the Commonwealth of Pennsylvania
28   hereby enacts as follows:
29      Section 1.    Sections 4(g.1), 301.7(a), 301.8(b)(1), 401(e)
 1   (1), 402(a), 404(c), (d)(1) and (1.1) and (e)(2)(iv), (v) and
 2   (vi) and 501(c)(1) of the act of December 5, 1936 (2nd Sp.Sess.,
 3   1937 P.L.2897, No.1), known as the Unemployment Compensation
 4   Law, are amended to read:
 5      Section 4.     Definitions.--The following words and phrases, as
 6   used in this act, shall have the following meanings, unless the
 7   context clearly requires otherwise.
 8      * * *
 9      [(g.1)   "Credit week" means any calendar week in an
10   individual's base year with respect to which he was paid in
11   employment as defined in this act, remuneration of not less
12   than:
13      (1)   One hundred dollars ($100). This paragraph shall expire
14   December 31, 2014.
15      (2)   Sixteen (16) times the minimum hourly wage required by
16   the act of January 17, 1968 (P.L.11, No.5), known as "The
17   Minimum Wage Act of 1968." This paragraph shall take effect
18   January 1, 2015.
19   Only one credit week can be established with respect to any one
20   calendar week.]
21      * * *
22      Section 301.7.    Trigger Determination.--(a)   On July 1 of
23   every year, the secretary shall calculate the trigger percentage
24   to be used in setting surcharge and contribution rates for the
25   contributions required under sections 301.2, 301.4 and 301.5 and
26   in setting the benefit reduction required under section 404(e)
27   (4) for the following calendar year. The secretary shall[:
28      (1)   add the principal amount of outstanding bonds under
29   Article XIV and the amount of outstanding advances under Title
30   XII of the Social Security Act (58 Stat. 790, 42 U.S.C. § 1321

20250HB1243PN1392                    - 2 -
 1   et seq.) and subtract that sum from the balance in the
 2   Unemployment Compensation Fund;
 3      (2)   determine the average of the benefit costs for the three
 4   immediately preceding fiscal years; and
 5      (3)   calculate the percentage that the amount determined
 6   under paragraph (1) represents of the average of the benefit
 7   costs.] determine the average high cost multiple for the
 8   preceding calendar year in accordance with 20 CFR 606.3
 9   (relating to definitions). The trigger percentage shall be the
10   percentage determined by the ratio of the average high cost
11   multiple over one.
12      * * *
13      Section 301.8.    Trigger Rate Redeterminations.--* * *
14      (b)   (1)   For calendar years 2013 through the year determined
15   under paragraph (4), if the trigger percentage as of July 1 of
16   the preceding calendar year is less than [two hundred fifty per
17   centum (250%)] one hundred per centum (100%), the rates
18   determined under paragraph (2) shall apply. For calendar years
19   following the year determined under paragraph (4), if the
20   trigger percentage as of July 1 of the preceding calendar year
21   is less than [two hundred fifty per centum (250%)] one hundred
22   per centum (100%), the rates determined under paragraph (3)
23   shall apply.
24      * * *
25      Section 401.    Qualifications Required to Secure
26   Compensation.--Compensation shall be payable to any employe who
27   is or becomes unemployed, and who--
28      * * *
29      (e)   (1)   [Has been unemployed for a waiting period of one
30   week.] (Reserved).

20250HB1243PN1392                   - 3 -
 1      * * *
 2      Section 402.   Ineligibility for Compensation.--An employe
 3   shall be ineligible for compensation for any week--
 4      (a)   In which his unemployment is due to failure, without
 5   good cause, either to apply for suitable work at such time and
 6   in such manner as the department may prescribe, or to accept
 7   suitable work when offered to him by the employment office or by
 8   any employer, irrespective of whether or not such work is in
 9   "employment" as defined in this act: Provided, That such
10   employer notifies the employment office of such offer within
11   seven (7) days after the making thereof; however this subsection
12   shall not cause a disqualification of [a waiting week or]
13   benefits under the following circumstances: when work is offered
14   by his employer and he is not required to accept the offer
15   pursuant to the terms of the labor-management contract or
16   agreement, or pursuant to an established employer plan, program
17   or policy: Provided further, That a claimant shall not be
18   disqualified for refusing suitable work when he is in training
19   approved under section 236(a)(1) of the Trade Act of 1974.
20      * * *
21      Section 404.   Rate and Amount of Compensation.--Compensation
22   shall be paid to each eligible employe in accordance with the
23   following provisions of this section except that compensation
24   payable with respect to weeks ending in benefit years which
25   begin prior to the first day of January 1989 shall be paid on
26   the basis of the provisions of this section in effect at the
27   beginning of such benefit years.
28      * * *
29      (c)   If an otherwise eligible employe has base year wages in
30   an amount equal to or in excess of the amount of qualifying

20250HB1243PN1392                  - 4 -
 1   wages appearing in Part C of the Table Specified for the
 2   Determination of Rate and Amount of Benefits on the line on
 3   which in Part B there appears his weekly benefit rate, as
 4   determined under subsection (a) of this section, [and had
 5   eighteen (18) or more credit weeks during his base year,] he
 6   shall be entitled during his benefit year to the amount
 7   appearing in Part B on said line multiplied by the number of
 8   [credit weeks during his base year] weeks for which a claim for
 9   unemployment benefits is filed, up to a maximum of twenty-six
10   (26). Notwithstanding any other provision of this act, any
11   employe [with less than eighteen (18) credit weeks] without
12   wages in at least two (2) quarters during the employe's base
13   year shall be ineligible to receive any amount of compensation.
14      (d)   (1)   Notwithstanding any other provisions of this
15   section each eligible employe who is unemployed with respect to
16   any week ending subsequent to July 1, 1980 shall be paid, with
17   respect to such week, compensation in an amount equal to his
18   weekly benefit rate less the total of (i) the remuneration, if
19   any, paid or payable to him with respect to such week for
20   services performed which is in excess of his partial benefit
21   credit[,] and (ii) vacation pay, if any, which is in excess of
22   his partial benefit credit, except when paid to an employe who
23   is permanently or indefinitely separated from his employment.
24   [and (iii) the amount of severance pay that is attributed to the
25   week.
26      (1.1)   For purposes of clause (1)(iii), all of the following
27   apply:
28      (i)   "Severance pay" means one or more payments made by an
29   employer to an employe on account of separation from the service
30   of the employer, regardless of whether the employer is legally

20250HB1243PN1392                   - 5 -
 1   bound by contract, statute or otherwise to make such payments.
 2   The term does not include payments for pension, retirement or
 3   accrued leave or payments of supplemental unemployment benefits.
 4      (ii)     The amount of severance pay attributed pursuant to
 5   subclause (iii) shall be an amount not less than zero (0)
 6   determined by subtracting forty per centum (40%) of the average
 7   annual wage as calculated under subsection (e) as of June 30
 8   immediately preceding the calendar year in which the claimant's
 9   benefit year begins from the total amount of severance pay paid
10   or payable to the claimant by the employer.
11      (iii)     Severance pay is attributed as follows:
12      (A)    Severance pay is attributed to the day, days, week or
13   weeks immediately following the employe's separation.
14      (B)    The number of days or weeks to which severance pay is
15   attributed is determined by dividing the total amount of
16   severance pay by the regular full-time daily or weekly wage of
17   the claimant.
18      (C)    The amount of severance pay attributed to each day or
19   week equals the regular full-time daily or weekly wage of the
20   claimant.
21      (D)    When the attribution of severance pay is made on the
22   basis of the number of days, the pay shall be attributed to the
23   customary working days in the calendar week.]
24      * * *
25      (e)    * * *
26      (2)    * * *
27      (iv)     In addition to the limitations set forth in subclause
28   (iii), the following shall apply:
29      (A)    Notwithstanding the provisions of subclause (iii)(B),
30   for calendar years 2020 through 2023, the maximum weekly benefit

20250HB1243PN1392                    - 6 -
 1   rate shall not increase if the trigger percentage determined
 2   under section 301.7(a) is less than one hundred ten per centum
 3   (110%) as of July 1, 2019.
 4      (B)   Notwithstanding the provisions of subclause (iii)(B.1),
 5   for calendar year 2024, the maximum weekly benefit rate may not
 6   increase from the preceding year if the trigger percentage
 7   determined under section 301.7(a) is less than [two hundred
 8   fifteen per centum (215%)] eighty-six per centum (86%) as of
 9   July 1, 2023.
10      (C)   If the maximum weekly benefit rate does not increase
11   under subparagraph (B), it may not increase until the year
12   following a July 1 determination under section 301.7(a) that the
13   trigger percentage is at least [two hundred fifty per centum
14   (250%)] one hundred per centum (100%).
15      (D)   If the conditions of subparagraph (C) are met, for the
16   purpose of determining the maximum weekly benefit, subclause
17   (iii) shall apply.
18      (v)   If, on July 1, 2025, the trigger percentage determined
19   under section 301.7(a) is less than [two hundred fifty per
20   centum (250%)] one hundred per centum (100%), the following
21   shall apply:
22      (A)   Notwithstanding the definition of "highest quarterly
23   wages" in subsection (b), but subject to subclause (vi),
24   "highest quarterly wages" for purposes of this section for
25   calendar years 2026 and thereafter shall be the average of the
26   total wages (computed to the nearest dollar), which were paid to
27   the employe computed as follows:
28      (I)   The wages paid to the employe in that calendar quarter
29   in which such total wages were highest during the base year
30   shall be calculated.

20250HB1243PN1392                  - 7 -
 1      (II)    The amount calculated under division (I) shall be added
 2   to an amount equal to one hundred thirty per centum (130%) of
 3   the wages paid to the employe in the calendar quarter in which
 4   such total wages were the second highest of any calendar quarter
 5   during the base year, provided that the amount added under this
 6   division (II) may not be greater than the wages paid to the
 7   employe during the highest calendar quarter under division (I).
 8      (III)    The sum calculated under division (II) shall be
 9   divided by two.
10      (B)    Notwithstanding section 401(a)(2), and except as
11   provided in subsections (a)(3) and (e)(1) and (2), section
12   401(a) shall require that the second entry in Part A of the
13   table for the determination of rate and amount of benefits, on
14   the line on which there appears the employe's weekly benefit
15   rate, does not exceed sixty-three per centum (63%) of the
16   employe's total base year wages.
17      (vi)    Notwithstanding the provisions of subsection (b) and
18   subclause (v) if, on July 1, 2026, or July 1 of any subsequent
19   year, the trigger percentage determined under section 301.7(a)
20   is at least [two hundred fifty per centum (250%)] one hundred
21   per centum (100%), the following shall apply:
22      (A)    "Highest quarterly wages" for the subsequent calendar
23   year and thereafter shall be determined as provided in
24   subsection (b) and not as provided in subclause (v).
25      (B)    Section 401(a)(2) shall apply and not subclause (v)(B).
26      * * *
27      Section 501.    Determination of Compensation Appeals.--* * *
28      (c)    (1)   The department shall promptly examine each claim
29   for [waiting week credit and each claim for] compensation and on
30   the basis of the facts found by it shall determine whether or

20250HB1243PN1392                    - 8 -
 1   not the claim is valid.
 2      * * *
 3      Section 2.     The definition of "employee information" in
 4   sections 1501 and 1501-A of the act are amended to read:
 5   Section 1501.   Definitions.
 6      The following words and phrases when used in this article
 7   shall have the meanings given to them in this section unless the
 8   context clearly indicates otherwise:
 9      * * *
10      "Employee information."     The name and Social Security number
11   of each employee[,] and the amount of wages paid to each
12   employee [and the number of credit weeks for each employee] in
13   each calendar quarter.
14      * * *
15   Section 1501-A.    Definitions.
16      The following words and phrases when used in this article
17   shall have the meanings given to them in this section unless the
18   context clearly indicates otherwise:
19      * * *
20      "Employee information."     The name and Social Security number
21   of each employee[,] and the amount of wages paid to each
22   employee [and the number of credit weeks for each employee] in
23   each calendar quarter.
24      * * *
25      Section 3.     The Secretary of Labor and Industry shall
26   transmit a notice to the Legislative Reference Bureau for
27   publication in the next available issue of the Pennsylvania
28   Bulletin upon completion of implementation of the technological
29   upgrades to the delivery system for unemployment compensation
30   benefits.

20250HB1243PN1392                      - 9 -
1     Section 4.    This act shall take effect as follows:
2         (1)    The amendment of sections 301.7(a), 301.8(b)(1) and
3     404(e)(2)(iv), (v) and (vi) of the act shall take effect July
4     1, 2025.
5         (2)    The following shall take effect immediately:
6                Section 3 of this act.
7                This section.
8         (3)    The remainder of this act shall take effect upon
9     publication of the notice under section 3 of this act.




20250HB1243PN1392                  - 10 -