Pennsylvania SB 321: An Act relating to transfers of operations, terminations of operations, mass layoffs and changes in control.

Bill Text

PRINTER'S NO. 275
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 321
Session of
2025
INTRODUCED BY KANE, KEARNEY, CAPPELLETTI, A. WILLIAMS, SAVAL,
COLLETT AND COSTA, FEBRUARY 26, 2025
REFERRED TO LABOR AND INDUSTRY, FEBRUARY 26, 2025
AN ACT
Relating to transfers of operations, terminations of
operations, mass layoffs and changes in control.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Mandatory
Severance for Mass Layoffs Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Business." An individual, partnership, association,
corporation or any person or group of persons that employs 50 or
more employees.
"Change of control." A material change in ownership of an
employer or a filing seeking bankruptcy protection.
"Covered employee." The following:
(1) An individual who has been employed by an employer
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18

for at least 90 days immediately before a change of control
affecting that individual's principal place of employment. A
change of control affects a covered employee's principal
place of employment if the change of control results in the
predecessor employer transferring control of the place of
employment to the successor employer.
(2) The term does not include:
(i) a managerial, supervisory or confidential
employee;
(ii) a temporary employee; or
(iii) a part-time employee who has worked less than
20 hours per week for the predecessor employer for at
least 90 days immediately before the change of control.
"Department." The Department of Labor and Industry of the
Commonwealth.
"Employer." An individual, partnership, association,
corporation or a person or group of persons acting directly or
indirectly in the interest of an employer in relation to an
employee, including a person who, directly or indirectly, owns
and operates the nominal employer or owns a corporate subsidiary
that, directly or indirectly, owns and operates the nominal
employer or makes the decision responsible for the employment
action that gives rise to a mass layoff subject to notification.
"Establishment." A single place of employment that has been
operated by an employer for more than three years, including a
single location or a group of locations in this Commonwealth.
The term does not include a temporary construction site.
"Facility." A building.
"Mass layoff." A reduction in force that is not the result
of a transfer of operations or termination of operations and
20250SB0321PN0275 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

that results in the termination of employment at an
establishment during any 30-day period for 50 or more
employees at or reporting to the establishment.
"Operating unit." An organizationally distinct product,
operation or specific work function within or across facilities
at a single establishment.
"Predecessor employer." The person who controls a business
before a change of control.
"Principal place of employment." An office or other facility
where an employee is principally assigned to work by a
predecessor employer.
"Successor employer." A person who controls a business after
a change of control.
"Termination of employment." The following:
(1) The layoff of an employee without a commitment to
reinstate the employee to the employee's previous employment
within six months of the layoff.
(2) The term does not mean:
(i) voluntary departure;
(ii) retirement;
(iii) discharge;
(iv) suspension for misconduct connected with
employment;
(v) layoff of a seasonal employee; or
(vi) a situation in which an employer offers to an
employee, at a location inside this Commonwealth and not
more than 50 miles from the previous place of employment,
the same employment or a position with equivalent status,
benefits, pay and other terms and conditions of
employment.
20250SB0321PN0275 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

(3) A layoff under paragraph (1) of more than six months
which, at its outset, was announced to be a layoff of six
months or less, shall not be treated as a termination of
employment if the extension beyond six months is caused by
business circumstances not reasonably foreseeable at the time
of the initial layoff and notice is given at the time it
becomes reasonably foreseeable that the extension beyond six
months will be required.
"Termination of operations." The following:
(1) The permanent or temporary shutdown of a single
establishment or of one or more facilities or operating units
within a single establishment.
(2) The term does not include a termination of
operations made necessary because of a fire, flood, natural
disaster, national emergency, act of war, civil disorder or
industrial sabotage, decertification from participation in
th