On December 22, 2025, Governor Shapiro signed House Bill 274, a significant update to the Commonwealth’s Unemployment Compensation (UC) Law. The bill – now Act 55 of 2025 (Act 55) – expands unemployment compensation eligibility protections for individuals affected by domestic violence and clarifies several ineligibility provisions related to work search and refusal of suitable work.
In her latest blog, KingSpry Employment Attorney, Taisha K. Tolliver-Duran, Esq., discusses the notable changes to the Unemployment Compensation Law and its impact on employers and employees.
Expanded Eligibility for Domestic Violence Survivors
Act 55 adds a new provision to the UC Law to expressly protect survivors of domestic violence from disqualification under the voluntary quit or failure-to-report-to-work rules. Under the Bill, a claimant will not be deemed ineligible if continued employment would jeopardize the safety of the individual or a family or household member due to a domestic violence situation.
The Act requires verification of a domestic violence situation for the initial UC application. Acceptable documentation includes:
- An active or recently issued protective order, court, police, medical treatment, social services, or child protective service records.
- A supporting statement from a qualified professional (such as a counselor, shelter worker, clergy member, attorney, health care worker), or a similar statement from a friend or relative from whom assistance was sought.
- A self-affirmation that continued employment would jeopardize the claimant’s safety, provided that additional evidence is submitted within 150 days of the application.
- Any other evidence that reasonably demonstrates domestic violence.
Documents submitted under this provision must remain confidential, and the Department of Labor and Industry (the “Department”) may not disclose the existence of a domestic violence situation in any notice to the employer.
Once appropriate evidence is submitted, and the claimant is otherwise eligible, the Department must expedite the eligibility determination – effectively creating an “express lane” aimed at reducing delays for survivors during a critical period.
Clarifications on Ineligibility Rules
Act 55 also amends provisions governing work search obligations and refusal of suitable work. Specifically, the Bill amends Section 402(a) of the UC Law to clarify that claimants must make a good-faith effort to obtain suitable work and may not “unreasonably discourage” their own hire. Examples of discouraging conduct include:
- Failing to appear for interviews without good cause.
- Refusing employment or referrals before engaging in any interview or discussion of job details.
Claimants who unreasonably discourage their own hire are treated as having refused suitable work for UC eligibility purposes. Within 90 days of the Bill’s effective date, the Department must create or update forms that allow employers to report instances where a claimant discourages their own hire.
These clarifications reinforce existing expectations regarding active work search and participation in the hiring process.
Employer Relief and Protections
Act 55 also includes several employer-focused provisions:
- Employers will receive automatic relief from UC contribution charges related to claims determined eligible under the new domestic violence provisions. As a result, an employer’s tax rate will not increase due to such claims.
- Employers will also receive automatic charge relief for claims disqualified under the updated ineligibility rules for discouraging hire.
- The Department must notify employers when charge relief is granted, without requiring employers to submit a request.
These measures reflect the legislature’s intent to balance support for claimants without imposing additional financial burdens on employers.
Impact
Act 55 reflects a growing focus on modernizing Pennsylvania’s UC system to better align with real-world workforce dynamics – especially in recognizing safety-related employment decisions. At the same time, the Bill aims to deter abuse of the UC system by clarifying claimant responsibilities during the job search process.
Employers should review the new protections and ineligibility rules to understand how they may affect future UC determinations.
This article is a publication of the KingSpry Employment Law Practice Group. It is meant to be informational and does not constitute legal advice. Whether your company requires a handbook review, employee investigation, representation in court, or advice on a new trend, KingSpry can help. If your company has questions regarding its employment practices and/or the Department’s various self-audit programs, KingSpry’s Employment Law team is prepared to assist you.
