House and Senate lawmakers returned to Harrisburg for session last week, as disagreements over spending levels continue to hold up state budget negotiations.

While the House’s passage of a budget bill grabbed headlines last week, the lower chamber also advanced a trio of bills that would negatively impact Pennsylvania’s business community and our state’s economic competitiveness.

 

Here’s a recap of last week’s legislative action most relevant to employers:

 

Unemployment for striking workers (H.B. 145)

The House of Representatives voted 106-97 to pass House Bill 145 last week.

This legislation would reverse nearly 90 years of national and state precedent by providing that individuals who voluntarily go on strike are eligible for unemployment compensation benefits.

The bill detrimentally impacts employers and the economy in several ways, including by unfairly tilting the playing field in the event of a labor dispute, increasing UC tax rates for employers experiencing a strike, and exacerbating the current insolvency of the UC trust fund.

The PA Chamber strongly opposes this proposal (CLICK HERE for our memo) and separately issued a public statement urging Senate lawmakers to reject it.

 

PA Human Relations Act bills (H.B. 1825 and H.B. 1826)

The House Labor and Industry Committee last week advanced two separate proposals related to the Pennsylvania Human Relations Act (PHRA).

 

House Bill 1825

The committee voted along party lines (14-12) to advance House Bill 1825 on Tuesday.

This proposal would require employers to adopt and post written policies and procedures for preventing harassment, discrimination, and retaliation.

While we have concerns with imposing additional mandates on employers, we appreciate that a few modest amendments we suggested were incorporated into the bill, including notifying employers of any changes to model policies, waiving penalties for most first violations, and providing employers the flexibility to post their policies online.

 

House Bill 1826

The committee also voted 15-11 to advance House Bill 1826 on Tuesday.

This legislation would lower the threshold for an employer to be subject to the PHRA from four to two employees, which could trigger unintended consequences for these small businesses, many of which may be just getting started.

Both state and federal anti-discrimination laws have always recognized the unique impact on small businesses; for example, the Federal Civil Rights Act does not apply to employers with fewer than 15 employees, and most state laws include a threshold.

Small businesses just getting started may be particularly susceptible to unfounded or frivolous claims but lack the resources to defend themselves. Pennsylvania struggles to attract new businesses, and this proposal would make Pennsylvania even less attractive to start-ups.

 

The PA Chamber opposed H.B. 1826 but did not oppose H.B. 1825 while we work toward a compromise final product (CLICK HERE for our memo).