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Pennsylvania Chamber of Business and Industry Senior Vice President of Government Affairs Alex Halper. PHOTO/PACAST
PA Chamber addresses House passage of unemployment compensation
Ed Gruver//December 18, 2025//
Listen to this articleThe Pennsylvania House of Representatives has passed House Bill 274, sending the bipartisan unemployment compensation (UC) reform package to Governor Josh Shapiro.
“House Bill 274 is compromise legislation that includes priorities from various stakeholders,” Pennsylvania Chamber of Business and Industry Senior Vice President of Government Affairs Alex Halper said in a statement. “Like in any compromise, there was give and take, but this legislation will improve Pennsylvania’s unemployment compensation system overall.”
Halper said HB 274 strengthens safeguards against abuse, fixes a costly technical error, and provides added relief for employers facing higher UC taxes through no fault of their own.
“At the same time, we remain concerned about the delay of the updated benefit formula now pushed to 2029,” Halper added. “That reform is intended to improve fairness and reduce long-term strain on the UC Trust Fund, which remains below federal solvency benchmarks even as Pennsylvania employers pay among the highest UC taxes in the nation.
“We appreciate the bipartisan work of lawmakers in both chambers, particularly Senate Labor and Industry Committee Chair Devlin Robinson and members of the House, to advance legislation that improves how the UC system operates while keeping a focus on the system’s financial health.”
House Bill 274 incorporates legislation introduced by Sen. Michelle Brooks (R-Crawford) to address “ghosting,” when claimants skip interviews or ignore job offers while continuing to receive benefits. Employers have raised concerns about this practice for years, and the bill clarifies that claimants who discourage their own employment are not eligible for UC benefits.
The bill includes several provisions supported by the PA Chamber. It strengthens requirements for individuals previously deemed ineligible to demonstrate a clear connection to the workforce before reapplying for benefits. The ball also corrects a technical error that would have expanded eligibility and increased system costs. Finally, HB 274 expands situations in which employers are automatically granted relief from charges, helping avoid UC tax increases.
