House lawmakers returned to Harrisburg last week for the first week of session since budget hearings concluded earlier this month. As always, the PA Chamber’s government affairs team tracked and engaged with legislators on several committee proposals having to do with paid leave, unemployment compensation, data privacy, and more.

Here is a rundown of last week’s legislative action most relevant to employers.

 

Paid Leave Entitlement Program (H.B. 200; Rep. Miller)

The House Labor & Industry Committee advanced House Bill 200 in a party-line vote last Tuesday.

This legislation would establish the Pennsylvania Family and Medical Leave Insurance Program, in which all employers and employees would be taxed to fund a statewide system of wage benefits for individuals to take family or sick leave. Eligible employees would generally be entitled to up to 20 weeks per year to care for themselves or 12 weeks per year to care for a family member.

The bill would impose billions in taxes on Pennsylvania employers to create a new entitlement program and require employers of all sizes to adopt a one-size-fits-all mandatory policy related to time off regardless of a company’s size, industry, etc.

A “private option” included in the bill is so prescriptive and administratively challenging it’s likely most employers will be prohibited from developing customized leave policies that benefit their employees while still accommodating their own unique staffing requirements.

We opposed this bill (CLICK HERE for our memo). It now heads to the House Floor.

 

 

Redefining Unemployment Compensation Law (H.B. 265; Rep. Powell)

The Labor & Industry Committee also advanced House Bill 265 in another party-line vote last Tuesday.

This legislation would grant unemployment compensation (UC) eligibility to various categories of public school employees during the summer months.

UC is intended to provide temporary wage benefits to workers who have lost their jobs through no fault of their own as they actively seek new employment. Expanding the law to include new categories of employees who are not unemployed in the traditional sense would fundamentally change the program and dramatically increase costs when Pennsylvania employers already pay some of the highest UC taxes in the country.

We opposed this bill (CLICK HERE for our memo). It now heads to the House Floor.

  

 

Data Privacy (H.B. 78; Rep. Neilson)

The House Commerce Committee unanimously voted to advance House Bill 78 last Tuesday.

This legislation would regulate the collection and use of consumers’ personal data by providing consumers with certain rights and requiring businesses to protect and limit the collection of personal data.

The PA Chamber believes a national framework for data privacy regulation would be preferable to protect consumer data, promote transparency, and provide regulatory certainty in the marketplace. Congress, however, has not yet advanced consumer data privacy legislation and in the meantime, 20 states have adopted a patchwork of data privacy laws.

We have advocated that if lawmakers are to advance data privacy legislation at the state level, they look to states such as Virginia and Connecticut, which crafted their laws with input from the business community; as opposed to California, whose data privacy law is perceived as hostile to employers. H.B, 78 incorporates a number of key recommendations from the PA Chamber; however, some concerns remain including the relatively low threshold for covered entities (those collecting the data of 50,000 individuals) and short compliance window (6 months) which will be difficult for small businesses.

We supported an amendment offered in committee by Rep. Napoleon Nelson (D-Montgomery) to extend the effective date to one year (CLICK HERE for our memo). The bill now heads to the House Floor.

 

 

Prohibiting Paper Statement Fees (H.B. 81; Rep. Venkat)

The House Consumer Protection, Technology, and Utilities Committee voted 24-2 to advance House Bill 81 last Monday.

This legislation would amend Pennsylvania’s existing Unfair Trade Practices and Consumer Protection law to prohibit businesses from charging a fee for paper account statements, thereby creating a new private right of action.

House Bill 81 has broad-reaching implications for the business community, including opening the door to the government getting involved in price-setting and ongoing enhanced fraud concerns when financial statements go through the mail. If enacted, H.B. 81 designates charging paper account statement fees as an unfair trade practice under Pennsylvania law and creates a new private right of action.

Additionally, the PA Chamber supports additional exemptions in the bill for already regulated industries. There is also a strong likelihood that if enacted, H.B. 81 would face a constitutional challenge due to previous case law in other jurisdictions which established that prohibiting fees for paper billing statements violates the First Amendment rights of businesses.

We opposed this bill; it now heads to the House Floor.

 

 

 Municipal Waste Fees (House Bill 620; Rep. Isaacson)

The House Local Government Committee advanced House Bill 620 in a party-line vote last Wednesday.

This legislation proposes to increase the Recycling Fee from $3 to $5 per ton to generate more funds going into the program in support of increased costs and demands for those dollars.

The proposed increase in the Recycling Fee will raise the cost of essential services provided to citizens and businesses – yet another increased cost for Pennsylvania employers. Additionally, the bill could deter waste disposal in Pennsylvania, driving disposal out of state, thus depriving Pennsylvania and municipalities of any disposal-based revenues.

We opposed this bill (CLICK HERE for our memo). It now heads to the House Floor.

 

 

Mandatory Efficiency Standards (H.B. 660; Rep. O’Mara)

The House Energy Committee advanced House Bill 660 in another party-line vote last Monday.

This legislation mandates energy and water efficiency standards to commercial and residential appliances sold in the Commonwealth.

While we appreciate the intent of this legislation, imposing energy and water efficiency standards that are more stringent than federal levels will create additional costs for many businesses already grappling with inflation, supply chain challenges, and workforce shortages.

At a time when businesses and consumers are already facing rising costs in many areas, from food to energy, this bill threatens to further increase prices for everyday goods and services and exacerbates financial strains already being felt by so many Pennsylvanians.

We opposed this bill (CLICK HERE for our memo). It now heads to the House Floor.