|
PA Chamber member testifies on need for further UC reforms
Good steps have been taken, but new efforts needed to restore solvency to UC Trust Fund
PA Chamber member and President of Interstate Tax Service, Inc. Geoff Moomaw testified before a joint hearing of the House and Senate Labor and Industry Committees on August 9 to address a PA Chamber member priority – additional needed reforms to Pennsylvania’s unemployment compensation law.
Recognizing that Act 6's recent initial reform is a good first step in returning the Unemployment Compensation Trust Fund to its original intent, Moomaw thanked the lawmakers for getting the bill to the desk of Gov. Tom Corbett, who signed it into law in June. He said that Act 6 slows the growth of the UC fund by limiting the maximum weekly benefit payout. However, it does not address how Pennsylvania should begin to pay back a looming $3 billion deficit to the federal government accrued by continued borrowing in order to pay state benefits.
In order to keep the momentum going for UC reform, Moomaw urged movement on H.B. 1745 when the House and Senate return to Session in the Fall. The bill focuses on several key issues in UC litigation; primarily voluntary quits, leaves of absence, and willful misconduct. PA Chamber members agree that claimants who become permanently separated from their employer via an outright quit should not reap the benefits of a system meant for those who did not willingly choose to leave their job. Therefore, clearly defining a voluntary quit as exempt from UC benefits is necessary to restore the fund’s solvency, Moomaw testified.
Moomaw further explained that the UC Trust Fund should not be made available to those receiving uninterrupted health care and other benefits from their employer when they choose to take an extended leave.
“Our courts have made it clear that a medical condition can be a necessitous and compelling reason to voluntarily leave one’s employment. This has turned our UC system into a disability program which was not the purpose of the original act,” Moomaw explained.
The two main provisions contained in House Bill 1754 represent the top PA Chamber objectives in reforming the UC Law. Tying all quits to one’s employment and developing a bright line standard for what constitutes misconduct will put PA on the path to bring the UC law back to its stated purpose and intent of providing benefits to those who truly should be eligible.
“Pennsylvania Chamber members aren’t asking for any high reaching or unprecedented policy changes in these reform proposals,” said PA Chamber Director of Government Affairs Sam Denisco.
“In fact, most other states have already implemented these UC standards. That has resulted in Pennsylvania being far behind the curve in our ability to compete for business, resolve our UC debt, and make sure that the Commonwealth’s UC system can continue serving as a temporary financial safety net for those who separate from their employment through no fault of their own.”
The PA Chamber recognizes that the UC system is necessary for out of work Pennsylvanians to support themselves and their families while searching for gainful employment. However, the recently enacted reforms do not address the system’s fiscal obligations. In coming months, the PA Chamber will continue to advocate with policymakers on solutions to secure the UC system for future generations, protect it from abuse, and responsibly address a debt that is second in the nation for continued payouts.
###
Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of Business.
|
