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PA SB321

PA SB321
Relating to transfers of operations, terminations of operations, mass layoffs and changes in control.


summary

Introduced
02/26/2025
In Committee
02/26/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Relating to transfers of operations, terminations of operations, mass layoffs and changes in control.

AI Summary

This bill, known as the Mandatory Severance for Mass Layoffs Act, establishes comprehensive protections for employees during business transfers, operational changes, and mass layoffs in Pennsylvania. The legislation requires employers with 50 or more employees to provide at least 90 days' notice before conducting a transfer of operations, termination of operations, or mass layoff, and mandates severance pay for affected employees. Specifically, employers must provide one week of severance pay for each full year of employment, with additional compensation if proper notification is not given. The bill also introduces new requirements for changes in business control, including a mandatory 180-day transition period where a successor employer must retain existing employees at their current compensation levels and cannot terminate them without cause. Employers must provide public notice of ownership changes, share employee information with new owners, and can only reduce workforce numbers after two years with Department of Labor and Industry approval, and only if they can demonstrate the reduction is necessary for the business's solvency. The law aims to protect workers by ensuring transparency, providing financial support during job transitions, and preventing arbitrary dismissals during business changes, while still maintaining flexibility for businesses to manage their operations effectively.

Committee Categories

Labor and Employment

Sponsors (8)

Last Action

Referred to Labor & Industry (on 02/26/2025)

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