Senate Panel Approves McIlhinney Bill to Prevent Layoffs

HARRISBURG – The Senate Labor and Industry Committee unanimously approved legislation today that would preserve Pennsylvania jobs by giving employers alternatives to layoffs.

Senate Bill 1205, sponsored by Sen. Chuck McIlhinney (R-Bucks and Montgomery), would allow employers who are facing the prospect of layoffs to implement a temporary shared-work program that would reduce employee hours and allow those employees to receive proportionate unemployment compensation benefits in certain cases.

"Many businesses are still struggling to recover from the recession, and it is important for the General Assembly to take the necessary steps to prevent these businesses from being forced to eliminate jobs," McIlhinney said. "I am thankful that my colleagues have joined me in taking an important step toward protecting Pennsylvania jobs that are closest to being lost."

In cases where at least 10 percent of a unit would be affected by layoffs, the proposal would allow employers to reduce normal weekly hours by no less than 20 percent and no more than 40 percent. The shared-work plan would be voluntary for employers and would have to be reviewed and approved by the Pennsylvania Department of Labor and Industry and the union of any affected employees.

The total shared-work plan cannot exceed 52 weeks, and no employer will be permitted to take part in shared-work plans for more than 104 weeks out of a 156-week period. Participating employers must also agree to not lay off employees during the term of the plan and not hire or transfer new workers into the affected unit. Any shared-work plan must also comply with all applicable federal labor laws.

Senate Bill 1205 will now go to the full Senate for consideration.

Contact:

Heather Cevasco
(215) 489-5000