HARRISBURG – Pennsylvania Chamber of Business and Industry Senior Vice President of Government Affairs Alex Halper today issued the following statement after the Pennsylvania House of Representatives passed House Bill 274, sending the bipartisan unemployment compensation (UC) reform package to the governor’s desk.
“House Bill 274 is compromise legislation that includes priorities from various stakeholders. Like in any compromise, there was give and take, but this legislation will improve Pennsylvania’s unemployment compensation system overall,” Halper said. “The bill strengthens safeguards against abuse, fixes a costly technical error, and provides added relief for employers facing higher UC taxes through no fault of their own.
“At the same time, we remain concerned about the delay of the updated benefit formula now pushed to 2029. That reform is intended to improve fairness and reduce long-term strain on the UC Trust Fund, which remains below federal solvency benchmarks even as Pennsylvania employers pay among the highest UC taxes in the nation.
“We appreciate the bipartisan work of lawmakers in both chambers, particularly Senate Labor and Industry Committee Chair Devlin Robinson and members of the House, to advance legislation that improves how the UC system operates while keeping a focus on the system’s financial health.”
Background
House Bill 274 incorporates legislation introduced by Sen. Michelle Brooks, R-Crawford, to address “ghosting,” when claimants skip interviews or ignore job offers while continuing to receive benefits. Employers have raised concerns about this practice for years, and the bill clarifies that claimants who discourage their own employment are not eligible for UC benefits.
House Bill 274 also includes several other provisions supported by the PA Chamber:
- Strengthens requirements for individuals previously deemed ineligible to demonstrate a clear connection to the workforce before reapplying for benefits.
- Corrects a technical error that would have expanded eligibility and increased system costs.
- Expands situations in which employers are automatically granted relief from charges, helping avoid UC tax increases.