HB 1568 — An Act amending the act of July 14, 1961 (P.L.637, No.329), known as the Wage Payment and Collection Law, further providing for employees who are separated from payroll before paydays.

PRINTER'S NO.    1857

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1568
                                                Session of
                                                  2025

     INTRODUCED BY DALEY, HILL-EVANS, GUENST, SANCHEZ, FIEDLER,
        DONAHUE, D. WILLIAMS AND MAYES, JUNE 5, 2025

     REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, JUNE 9, 2025


                                     AN ACT
 1   Amending the act of July 14, 1961 (P.L.637, No.329), entitled
 2      "An act relating to the payment of wages or compensation for
 3      labor or services; providing for regular pay days; conferring
 4      powers and duties upon the Department of Labor and Industry,
 5      including powers and duties with respect to the civil
 6      collection of wages; providing civil and criminal penalties
 7      for violations of the act; providing for their collection and
 8      disposition and providing for additional civil damages,"
 9      further providing for employees who are separated from
10      payroll before paydays.
11      The General Assembly of the Commonwealth of Pennsylvania
12   hereby enacts as follows:
13      Section 1.     Section 5 of the act of July 14, 1961 (P.L.637,
14   No.329), known as the Wage Payment and Collection Law, is
15   amended by adding a subsection to read:
16      Section 5.     Employes Who Are Separated from Payroll before
17   Paydays.--* * *
18      (a.1)   Unused Fringe Benefits or Wage Supplements.
19      (1)    If an employer has an accrual policy:
20      (i)    The accrual policy shall be in writing.
21      (ii)    The employer shall pay an employe who separates from
22   the employer any unused fringe benefits or wage supplements in
 1   accordance with the accrual policy and this section.
 2      (2)    If an employer does not have an accrual policy, an
 3   employe who separates from the employer, through termination,
 4   permanent layoff, retirement, resignation or otherwise, and who,
 5   at the time of separation, has unused fringe benefits or wage
 6   supplements in the form of separation, vacation, holiday or
 7   guaranteed pay, whether earned by accrual or awarded in some
 8   other manner, shall be entitled to the full amount of the unused
 9   fringe benefits or wage supplements, which shall be due and
10   payable in accordance with this section.
11      (3)    If the business of the employer changes ownership, the
12   employe may agree in writing that the unused fringe benefits or
13   wage supplements described under this subsection be carried
14   forward and transferred to the subsequent employer.
15      (4)    This section applies to seasonal employes and temporary
16   employes.
17      (5)    This subsection does not apply to:
18      (i)    Sick pay or other sick leave benefit, which may be used
19   only in the event of illness or injury, unless:
20      (A)    the employer does not delineate the types of paid time
21   off for the employe; or
22      (B)    the employer and employe have entered into a specific
23   agreement otherwise, through a collective bargaining agreement
24   or contract of employment, or an employer policy provides
25   otherwise.
26      (ii)     A temporary layoff of the employe by the employer.
27      (6)    For purposes of this subsection, the term "accrual
28   policy" means a policy regarding the payment of unused fringe
29   benefits or wage supplements in the form of separation,
30   vacation, holiday or guaranteed pay, whether earned by accrual

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1   or awarded in some other manner, to an employe when the employe
2   separates from the employer, through termination, permanent
3   layoff, retirement, resignation or otherwise.
4      * * *
5      Section 2.   This act shall take effect in 60 days.




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