For Immediate Release
1/26/10

McIlhinney Introduces Legislation to Prevent Layoffs

HARRISBURG – Sen. Chuck McIlhinney (R-Bucks and Montgomery) introduced legislation today that would preserve Pennsylvania jobs by giving employers alternatives to layoffs.

McIlhinney's legislation, Senate Bill 1205, 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.

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 Department of Labor and the union of any affected employees.

"As we continue to work toward a recovery from the recession, my legislation could help keep many Pennsylvanians in the workforce instead of the unemployment line," McIlhinney said. "Jobs are the key to a healthy economy, and this proposal gives us an opportunity to save the jobs that are closest to being lost."

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. 

CONTACT:

Heather Cevasco
(215) 489-5000

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