This bill amends the Wage Payment and Collection Law of Pennsylvania to provide clearer guidelines regarding the payment of unused fringe benefits or wage supplements to employees who separate from their employer before scheduled paydays. A new subsection is added to Section 5, which outlines the obligations of employers concerning unused benefits. If an employer has a written accrual policy, they must pay employees any unused benefits according to that policy. If no such policy exists, employees are entitled to the full amount of unused benefits at the time of separation, regardless of the reason for their departure, including termination, layoff, or resignation.
Additionally, the bill specifies that if a business changes ownership, employees may agree in writing to transfer their unused benefits to the new employer. It also clarifies that the provisions do not apply to sick pay unless specific conditions are met, nor do they apply to temporary layoffs. The term "accrual policy" is defined to ensure consistency in how unused benefits are managed. The act is set to take effect 60 days after its passage.