Wolf Signs Unemployment Compensation Bill Championed by Gingrich
HARRISBURG – On Thursday, Gov. Tom Wolf signed legislation that was ushered through the House by Rep. Mauree Gingrich (R-Lebanon), chairman of the House Labor and Industry Committee, to further stabilize Pennsylvania’s Unemployment Compensation Fund and permit thousands of cyclical workers to regain eligibility for unemployment compensation (UC) benefits.
Cyclical workers are those in construction and other fields who are frequently laid off – through no fault of their own – as the work loads of their industries rises and fall.
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Act 144 of 2016 makes changes to
Act 60 of 2012, which aimed to restore solvency to the unemployment compensation system, but in the process, rendered about 44,000 cyclical workers no longer eligible for benefits,” said Gingrich. “I worked with the Department of Labor and Industry and my colleagues on both sides of the aisle to correct this situation and restore eligibility for these workers. This legislation will not only benefit cyclical workers, but businesses as well.”
Act 144 amended the law to change the method of determining financial eligibility UC, which is based on the wages a worker earned throughout a base year– a change that will restore eligibility for those cyclical workers denied benefits under Act 60. The newly eligible workers will still have to meet all other eligibility requirements. The new law also puts the UC Fund on a solid path to financial solvency. In fact, Act 144 is expected to save the UC system about $1.5 billion over the next 10 years, and additional cost-saving measures could occur if key benchmarks are not met.
The additional $118 million annual cost of the expanded UC eligibility under Act 144 will be offset by:
- Higher contributions for employers with the worst records for laying off workers.
- Measures to reduce benefit costs and slow the future growth of benefit rates.
- An amnesty program to encourage payment by employers and claimants with outstanding obligations to the UC system.
- Increased fines and penalties for fraud and other violations of UC law.
The changes for UC claimants and employer contributions will take effect on Jan.1, 2017.
Representative Mauree Gingrich
101st District
Pennsylvania House of Representatives
Media Contact: Donna Pinkham
717.260.6452
dpinkham@pahousegop.com
RepGingrich.com