Bill > HB567

This bill addresses employment relationships in Pennsylvania by fundamentally changing the traditional "at-will" employment model. The bill establishes a presumption that employment relationships are based on yearly contracts that can only be terminated for "good cause," which is defined as reasonable job-related grounds including gross incompetence, felonious workplace acts, repeated violations of employment terms, financial necessity, criminal conviction, or inability to perform job duties. The legislation requires employers with 15 or more employees to provide a one-year employment contract that automatically renews unless the employer provides 30 days' written notice of non-renewal. Employees can terminate employment at any time, while employers can only end employment before the contract term for good cause. The bill provides robust protections against wrongful discharge, allowing employees to sue for damages including up to four years of lost wages, attorney fees, and potential punitive damages if the employer acted maliciously. Additionally, the bill allows for a three-month probationary period during which employers have more flexibility in terminating employment. The legislation explicitly aims to address what lawmakers view as an unequal power dynamic between employers and employees by providing greater employment security and preventing arbitrary dismissals, while still maintaining reasonable flexibility for employers to manage their workforce.

Labor and Employment

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=567