Unemployment Compensation Solvency

key policy area

Overview

Throughout COVID-19 and beyond, the issue of unemployment has consistently risen to the top. Occupational prosperity and the well-being of the community are directly affected, therefore preventing essential businesses from shuttering is a priority for keeping local businesses afloat and Pennsylvanians safe.

Legislation, such as HB2708, has been introduced by the PA House of Representatives to support self-insured entities that are providing indispensable services afloat by letting them pay solvency fees retroactively and potentially avoid the risk of bankruptcy.

Challenge

There are an unprecedented amount of unemployment compensation claims. The strain on everyone involved is undeniable, and adverse impacts are felt by employers and employees alike. Without continued fiscal support, community transit, nonprofits, and municipalities may be required to stay open while also facing bankruptcy.

Challenge #1

Many of the businesses affected by HB2708 provide services for the benefit of the community, including nonprofits, community transit, and more. Without them, many of the most vulnerable Pennsylvanians will see increased hardship and may go without their basic needs being met.

Preventing insolvency during uncertain and trying pandemic circumstances is critical, as these organizations are a conduit to keeping community members afloat and helping the community come back strong.

Challenge #2

Without wage replacement or the support of a community service safety net in the event of unemployment, there is an increased risk of eviction, hunger, and more. Without the essential services provided by nonprofit organizations, we can only expect matters to worsen for many Pennsylvanians.

In the midst of a pandemic, being without housing or other important social services increases the likelihood of adverse health consequences. Despite a federal eviction moratorium, community members have already begun being evicted and are without housing amid a health crisis and the incoming winter months.

In addition to supporting essential businesses, enacting HB2708 also benefits the people of Pennsylvania by ensuring they continue to receive services as needed.

Opportunity

Enact the HB 2708

The bill calls for a retroactive window for these employers to pay the solvency fee in order to obtain 100% reimbursement. Support for these 5,000 non-profits will allow them to continue providing critical services to those most vulnerable in Pennsylvania who have been impacted by COVID-19.

Policy Position & Action

Position Overview

We support providing additional relief from insolvency charges throughout the duration of the COVID-19 pandemic.

Bill Status: This bill has not yet been assigned to any committees in the House of Representatives.

 

Take Action

Advocate, creating urgency around the legislation. You can reach out to your legislators directly and emphasize the importance of supporting local organizations that are keeping the community going at this time. Request that they send the legislation to committee so it increases the likelihood that it is voted on in the House. You can find our templated Word document response to use here and more information here. You can also use the Change Our State website to identify your elected officials.

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