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
Amending the act of July 14, 1961 (P.L.637, No.329), entitled
"An act relating to the payment of wages or compensation for
labor or services; providing for regular pay days; conferring
powers and duties upon the Department of Labor and Industry,
including powers and duties with respect to the civil
collection of wages; providing civil and criminal penalties
for violations of the act; providing for their collection and
disposition and providing for additional civil damages,"
further providing for employees who are separated from
payroll before paydays.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 5 of the act of July 14, 1961 (P.L.637,
No.329), known as the Wage Payment and Collection Law, is
amended by adding a subsection to read:
Section 5. Employes Who Are Separated from Payroll before
Paydays.--* * *
(a.1) Unused Fringe Benefits or Wage Supplements.
(1) If an employer has an accrual policy:
(i) The accrual policy shall be in writing.
(ii) The employer shall pay an employe who separates from
the employer any unused fringe benefits or wage supplements in
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accordance with the accrual policy and this section.
(2) If an employer does not have an accrual policy, an
employe who separates from the employer, through termination,
permanent layoff, retirement, resignation or otherwise, and who,
at the time of separation, has unused fringe benefits or wage
supplements in the form of separation, vacation, holiday or
guaranteed pay, whether earned by accrual or awarded in some
other manner, shall be entitled to the full amount of the unused
fringe benefits or wage supplements, which shall be due and
payable in accordance with this section.
(3) If the business of the employer changes ownership, the
employe may agree in writing that the unused fringe benefits or
wage supplements described under this subsection be carried
forward and transferred to the subsequent employer.
(4) This section applies to seasonal employes and temporary
employes.
(5) This subsection does not apply to:
(i) Sick pay or other sick leave benefit, which may be used
only in the event of illness or injury, unless:
(A) the employer does not delineate the types of paid time
off for the employe; or
(B) the employer and employe have entered into a specific
agreement otherwise, through a collective bargaining agreement
or contract of employment, or an employer policy provides
otherwise.
(ii) A temporary layoff of the employe by the employer.
(6) For purposes of this subsection, the term "accrual
policy" means a policy regarding the payment of unused fringe
benefits or wage supplements in the form of separation,
vacation, holiday or guaranteed pay, whether earned by accrual
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or awarded in some other manner, to an employe when the employe
separates from the employer, through termination, permanent
layoff, retirement, resignation or otherwise.
* * *
Section 2. This act shall take effect in 60 days.
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