Bill

Bill > HB1688


PA HB1688

PA HB1688
In compensation, further providing for rate and amount of compensation.


summary

Introduced
07/01/2025
In Committee
07/01/2025
Crossed Over
Passed
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

Amending the act of December 5, 1936 (2nd Sp.Sess., 1937 P.L.2897, No.1), entitled "An act establishing a system of unemployment compensation to be administered by the Department of Labor and Industry and its existing and newly created agencies with personnel (with certain exceptions) selected on a civil service basis; requiring employers to keep records and make reports, and certain employers to pay contributions based on payrolls to provide moneys for the payment of compensation to certain unemployed persons; providing procedure and administrative details for the determination, payment and collection of such contributions and the payment of such compensation; providing for cooperation with the Federal Government and its agencies; creating certain special funds in the custody of the State Treasurer; and prescribing penalties," in compensation, further providing for rate and amount of compensation.

AI Summary

This bill modifies the Unemployment Compensation Law by changing how an employee's weekly benefit rate and highest quarterly wages are calculated. Specifically, the bill replaces references to "highest quarterly wage" with "average quarterly wage" and requires calculating average quarterly wages by dividing an employee's total base year wages by four. The bill introduces a new method for calculating quarterly wages that depends on a "trigger percentage" related to the unemployment compensation fund's financial status. Under certain conditions (if the trigger percentage is below 250% on July 1, 2025), the calculation of highest quarterly wages would involve averaging the highest quarter's wages with 130% of the second-highest quarter's wages. The bill also adjusts provisions related to the maximum weekly benefit rate, ensuring it does not exceed 63% of an employee's total base year wages under specific circumstances. The changes are designed to modify how unemployment compensation benefits are determined, potentially affecting the amount of benefits an unemployed worker might receive. The bill is set to take effect six months after its passage, giving state agencies time to implement the new calculations and procedures.

Committee Categories

Labor and Employment

Sponsors (17)

Last Action

Referred to Labor & Industry (on 07/01/2025)

bill text


bill summary

Loading...

bill summary

Loading...
Loading...