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Unemployment compensation reforms long-supported by PA Chamber members are on the move in the General Assembly, with House and Senate committees advancing bills designed to control costs and address Pennsylvania’s Unemployment Compensation Trust Fund solvency crisis.

The House Labor and Industry Committee advanced one measure, H.B. 916, which proposes several changes to the existing Unemployment Compensation Law. The legislation, which the PA Chamber helped draft, would tighten eligibility requirements and recalculate benefit amounts to help stabilize the insolvent Unemployment Compensation Trust Fund, save businesses money and prevent claimants from abusing the system.

While reforming the unemployment compensation system has always been of great importance to the business community, action now is critical in order to restore solvency to the UC Trust Fund, which has been operating on money borrowed from the federal government and tighten eligibility to ensure that the system is there for those who truly need it. Because of the recent economic downturn and Pennsylvania’s liberal eligibility rules – claimants aren’t even required to look for work while receiving UC benefits – Pennsylvania was second only to California in the amount of UC benefits paid out, despite an unemployment rate that is lower than most states across the nation.

A PA Chamber memo to committee members in support of H.B. 916 is available here.

House Bill 916 is sponsored by state Rep. Scott Perry, R-York.

The second bill, S.B. 1030, was approved by the Senate Labor and Industry Committee. As originally drafted, the bill would address circumstances under which an employer can be relieved of paying a claimant’s benefits. Two amendments adopted in committee expanded the scope of the legislation’s reform efforts. One amendment would require claimants to submit proof that they are actively seeking employment, while the other would establish a “Shared Work Program” that gives employers an option to limit working hours in an effort to prevent layoffs. The bill and the amendments are supported by PA Chamber members as part of its member-driven UC Policy. 

“Without implementing immediate changes to the Unemployment Compensation Law, job creators will face excessive costs that will hurt their competitiveness,” Alex Halper, manager of Government Affairs with the PA Chamber, said.

“Pennsylvania Chamber members support swift passage of these bills to finally get benefit costs under control, restore revenue to the Unemployment Compensation Trust Fund and help control cost for job creators.”

A PA Chamber memo to committee members in support of S.B. 1030 is available here.

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The Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business association, with thousands of statewide members representing businesses of all sizes and all industry sectors. The PA Chamber is The Statewide Voice of Business™. More information is available on the Chamber’s website at www.pachamber.org.