The House and Senate were in session last week and considered proposals related to employment, workers’ compensation, industry-specific regulation, zoning requirements, and more. Here is a rundown of last week’s legislative action relevant to employers:

 

Overregulating Food Processing Industry (H.B. 2235)

The House of Representatives voted 120-82 to pass House Bill 2235 last Wednesday.

This legislation proposes numerous mandates and a comprehensive regulatory framework specifically targeting the food processing industry.

Specifically, the bill proposes mandates on the food processing and meatpacking industries addressing a wide range of employment and workplace policies including dictating new employee orientation and training; workplace safety committees; among other areas.

The mandates in this bill are generally duplicative with mandates that exist under other state or federal laws and therefore likely to create compliance complications and expose employers to the penalties and civil actions outlined in the bill (CLICK HERE for our memo).

House Bill 2235 now heads to the Senate for committee consideration.

 

Pennsylvania Board of Finance and Revenue Appeals Reform (S.B. 1051)

The Senate voted 29-21 to pass Senate Bill 1051 last Tuesday.

This legislation would allow the Board of Finance and Revenue (BF&R) to consider late-filed tax appeals from the Department of Revenue (DOR) if the taxpayer shows good cause. It also establishes a settlement process at the BF&R as an alternative to the formal and lengthy court appeals process.

Taxpayers who disagree with a final decision made by DOR currently have 60 days to appeal the decision to the BF&R. Without the ability to accept late-filed appeals, cases are dismissed on a technicality rather than on merits. The ability to settle disputes at the BF&R will provide for a quicker and fairer resolution to tax disputes, particularly for smaller businesses that do not have the resources for a drawn-out appeals process or litigation in the Commonwealth Court.

We supported this legislation (CLICK HERE for our memo). Senate Bill 1051 now heads to the House Finance Committee.

 

Discouraging ‘Ghosting’ Interviews/Jobs (S.B. 1109)

The House Labor and Industry Committee voted 23-2 to advance Senate Bill 1109 last Wednesday.

This legislation clarifies existing Unemployment Compensation eligibility standards to codify that an individual is not eligible for benefits if they discourage their own employment.

Under current law, UC claimants are generally required to engage in an active search for work, including applying for open positions in their field, engaging in other work search activity, and interviewing for jobs. Unfortunately, employers report interviewing job candidates who admit they are only applying in order to comply with the work search requirement and often fail to show up for job interviews or work, known as “ghosting.”

This bill would clarify the law to disqualify claimants who discourage their own employment. It would not create any additional requirements for claimants who are searching or applying for work in good faith (CLICK HERE for our memo). The bill is pending before the full House of Representatives.

 

Zoning Reform for Housing Construction (H.B. 1976 and H.B. 2045)

The House Local Government Committee voted 14-11 to advance House Bill 1976 and voted 14-11 to advance House Bill 2045 last Wednesday.

H.B. 1976 would revise zoning laws to allow multi-family housing and mixed-use development in urban areas zoned for office, retail, and parking with existing water and sewer systems. Similarly, H.B. 2045 would require municipalities with more than 5,000 residents to permit the use of duplex, triplex, and quadplex housing in areas currently zoned for single-family residences only.

Pennsylvania employers continue to express their struggles in finding qualified workers to fill open positions. Plentiful housing can enhance employee satisfaction, reduce commute times, and attract quality, qualified workers.

We supported this legislation, which is now pending before the full House of Representatives.

 

Office of New Pennsylvanians (H.B. 1630)

The House State Government Committee voted 14-11 to advance House Bill 1630 last Monday.

This legislation would establish the Office of New Pennsylvanians to attract, retain, and embrace immigrants in the Commonwealth.

Pennsylvania employers continue to suffer from a dramatic workforce shortage. This legislation helps ensure that immigrants, who comprise a crucial component of Pennsylvania’s workforce, are equipped with the resources necessary to be productive members of our society and fill an array of job openings in critically in-demand fields.

House Bill 1630 is now pending before the full House.

 

Direct Deposit for Workers’ Compensation Payments (S.B. 1232)

The Senate Labor & Industry Committee voted 11-0 to advance Senate Bill 1232 last Wednesday.

This legislation would allow employers to require payment of workers’ compensation benefits by direct deposit, as well as allow claimants to request payment of benefits by direct deposit.

The bill will modernize the Workers Compensation Act by establishing a regulatory framework to allow employers to make worker’s compensation payments by direct deposit, streamlining the process. These reforms were unanimously recommended by the Workers’ Compensation Advisory Council.

We supported this legislation, which is now eligible for a final vote in the Senate.

 

Pharmacy Benefit Manager Regulations (S.B. 1000)

The Senate Health & Human Services Committee voted 11-0 to advance Senate Bill 1000 last Tuesday.

This legislation would establish new limits on Pharmacy Benefit Managers (PBMs) including limits related to reimbursement, spread pricing, pharmacy networks, and rebate reporting. The legislation would also establish a mandatory dispensing fee to be paid to pharmacies.

The inclusion of a mandatory dispensing fee will significantly increase the cost of health insurance for employers and individuals. The PA Chamber encouraged lawmakers to continue to work with industry stakeholders on an alternative approach that will increase access while avoiding provisions that will significantly raise the cost of health insurance for employers and individuals.

We are opposed to this legislation, citing employer concerns about the bill (CLICK HERE for our memo). Senate Bill 1000 is now pending before the full Senate.

 

Employer 529 Contribution Tax Credit (H.B. 1745)

The Senate Finance Committee voted 11-0 to advance House Bill 1745 last Wednesday.

This legislation would create a credit for employer contributions to 529 tuition savings accounts. Any employer that contributes to an account owned by an employee under the Tuition Account Program would be able to claim a tax credit against the employer’s state tax liability.

The amount of the tax credit would be equal to 25 percent of the employer’s aggregate contributions made to accounts owned by employees during the tax year. The total amount of contributions that an employer may make to accounts owned by employees would not exceed $500 per employee during the tax year. The bill is pending before the full Senate.