PA Poised To Reform Its Unemployment Compensation System

HARRISBURG, PA — With jobless rates on the rise both statewide and nationally, Pennsylvania is preparing to tweaking its unemployment compensation system.

The state House and Senate this week approved a reform package that addresses several key aspects of the way unemployment benefits are delivered across the state. The legislation, which Gov. Josh Shapiro is expected to sign into law, was applauded by the Pennsylvania Chamber of Business and Industry.

“The bill strengthens safeguards against abuse, fixes a costly technical error, and provides added relief for employers facing higher unemployment taxes through no fault of their own," Alex Halper, the organization's senior vice president of government affairs, said in a statement.

According to the Pennsylvania Department of Labor & Industry, unemployment rose from 4.0 to 4.1 percent in September, the most recent month in which state statistics were available. According to the department, the delay in state data is the direct result of the recent federal government shutdown.

According to the federal Bureau of Labor Statistics, the national unemployment rate in November was 4.6 percent. That's the highest it's been since the rate reached 5.1 percent in August 2021.

The state's unemployment rate was four-tenths of a percentage point above the September 2024 level of 3.7 percent, while the national rate was up three-tenths of a point from last September.

The legislation approved this week addresses a a process known as "ghosting," in which unemployment claimants skip interviews or ignore job offers while receiving benefits.

"An employee shall be ineligible for compensation In which his unemployment is due to failure, without good cause, either to apply for suitable work at such time and in such manner as the Department of Labor and Industry may prescribe, or to accept suitable work when offered to him by the employment office or by any employer," the bill states.

The bill also includes several other provisions supported by the Pennsylvania Chamber. It:

• Strengthens requirements for individuals previously deemed ineligible to demonstrate a clear connection to the workforce before reapplying for benefits.

• Corrects a technical error that would have expanded eligibility and increased system costs.
• Expands situations in which employers are automatically granted relief from charges, helping avoid unemployment compensation tax increases.