Pennsylvania HB 567: An Act providing for assumption of employment relationship, for terms of yearly employment contract, for prohibition on waivers or limitations of employment protections, for elements of wrongful discharge, for remedies for wrongful discharge and for probationary period of employment.

Bill Text

PRINTER'S NO. 571
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No. 567
Session of
2025
INTRODUCED BY HOWARD, WAXMAN, KAZEEM, HILL-EVANS, ABNEY,
SANCHEZ, MADDEN AND KENYATTA, FEBRUARY 12, 2025
REFERRED TO COMMITTEE ON LABOR AND INDUSTRY, FEBRUARY 12, 2025
AN ACT
Providing for assumption of employment relationship, for terms
of yearly employment contract, for prohibition on waivers or
limitations of employment protections, for elements of
wrongful discharge, for remedies for wrongful discharge and
for probationary period of employment.
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 Employment
Clarification Act.
Section 2. Declaration of purpose.
The General Assembly finds and declares as follows:
(1) It is the intent of the General Assembly to overrule
the common law construct known as at-will employment, created
in whole cloth by the courts of this Commonwealth without
legislative input.
(2) The common law assumption of at-will employment
presumes an unrealistic equality of bargaining power between
employer and employee.
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(3) This assumption was created to fill a vacuum in the
laws of this Commonwealth.
(4) The subsequent development of the legal and
statutory concept of wrongful termination has implicitly
nullified the assumption of termination without cause.
(5) The resulting legal vacuum and uncertainty needs to
be addressed by a legislative enactment specifying the proper
assumptions of employment relationships.
(6) It is in this Commonwealth's interest that
employees, bargaining from a position of comparative
disadvantage, should enjoy a greater presumption of
employment protection as a matter of law.
(7) It is in the interest of employers to provide
certainty regarding the circumstances under which an
employment relationship may be severed, thus preventing
employers from being exposed to unexpected liability.
Section 3. 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:
"Breach of the duty of loyalty." As follows:
(1) An employee's breach of the duty of loyalty due to
the employee's employer in matters related to the employment
relationship by any of the following:
(i) Using or disclosing the employer's confidential
information to serve an interest other than the
employer's interest.
(ii) Directly and meaningfully competing with the
employer while employed by the employer.
(iii) Appropriating the property of the employer or
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engaging in self-dealing through use of the employer's
property.
(2) The term does not include an employee's actions
relating to the organization of a union or in furtherance of
organizing other employees.
"Constructive discharge." The termination of employment by
an employee due to a situation created by an act or omission of
the employer that a reasonable person would find so intolerable
that resignation is the only reasonable option. The term does
not include termination due to an employer's refusal to promote
the employee or improve wages, responsibilities or other terms
and conditions of employment.
"Discharge." The termination of employment, including
resignation, elimination of position, layoff, failure to recall
or rehire or any other cutback in the number of employees.
"Employee." An individual employed by an employer, other
than a temporary or seasonal employee hired for a specific
period of not more than six months, an independent contractor or
an individual in a business relationship not deemed an
employment relationship under the laws of this Commonwealth.
"Employer." An individual, partnership, association,
corporation, governmental body or other entity operating within
this Commonwealth that provides employment to no less than 15
employees.
"Fringe benefits." The value of an employer-paid vacation
leave, sick leave, medical insurance plan, disability insurance
plan, life insurance plan or pension benefit plan in force on
the date of discharge.
"Good cause." Reasonable job-related grounds for an
employee's dismissal based on any of the following:
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(1) Gross incompetence or dereliction of duty, including
a breach of the duty of loyalty.
(2) Commission of felonious acts in the workplace.
(3) Repeated or gross violations of terms of employment
as stated in an employee handbook or similar notice.
(4) Financial exigency.
(5) Conviction of a crime for which the employee must
serve a sentence in a correctional setting, whether job
related or not.
(6) Being otherwise indisposed in a way that would make
continued performance of duties impossible.
"Leave of absence." An employee's absence from work f