Last Week in the Legislature – 6/18/25

The General Assembly saw a flurry of legislative activity last week, with several bills considered  that could impact Pennsylvania employers. Lawmakers advanced proposals related to regulatory reform, energy access, CPA licensure, wage laws, health care transactions, tax policy, and more.

The PA Chamber weighed in on each, supporting efforts that promote competitiveness and opposing measures that would add new compliance burdens or raise undue costs. Here is a recap of last week’s legislative action most relevant to employers:

Three-Year Review of Economically Significant Regulations (S.B. 444; Brooks)

The Pennsylvania Senate voted along party lines (27-23) to pass Senate Bill 444 last Tuesday.

This legislation mandates that all economically significant regulations be reviewed every three years to evaluate their continued effectiveness and relevance, promoting a more accountable and adaptable regulatory system.

This legislation introduces a more dynamic and accountable regulatory environment, ensuring that outdated, duplicative, or unnecessarily burdensome rules are regularly re-evaluated and potentially revised or repealed. A periodic review reduces long-term compliance costs, encourages innovation, and improves regulatory clarity, all of which support a more competitive business climate and a more responsive government framework.

PA Chamber of Business and Industry supported this legislation (CLICK HERE for our memo), which was referred to the House Intergovernmental Affairs and Operations Committee.

Regulatory Review Act (S.B. 333; Keefer)

The Senate also voted along party lines (27-23) to pass Senate Bill 333 last Tuesday.

SB 333 requires any economically significant regulation, with an impact of $1 million or more annually, to receive approval from the General Assembly before taking effect, reinforcing legislative oversight of major regulatory decisions.

The legislation provides regulatory consistency and predictability, reduces the risk of costly compliance “surprises,” and gives the business community more opportunity to engage in policymaking that affects their operations and growth.

PA Chamber of Business and Industry supported this legislation (CLICK HERE for our memo), which was referred to the House Intergovernmental Affairs and Operations Committee.

Energy Choice (S.B. 311; Yaw)

The Senate voted 34-15 to pass Senate Bill 311 last Wednesday.

SB 311 prohibits municipalities from adopting policies that restrict or prohibit a utility service based on the type of energy source.

A stable energy framework and consistent policies that provide businesses with certainty is key in attracting economic investment in Pennsylvania. Ensuring reliable access to all types of utilities, regardless of their energy source, supports this goal while also meeting the diverse needs of consumers across the Commonwealth.

PA Chamber of Business and Industry supported this legislation, (CLICK HERE for our memo), which was referred to the House Energy Committee.

CPA Licensure Modernization (S.B. 719; Hutchinson)

The Senate voted unanimously (49-0) to pass Senate Bill 719 last Wednesday.

This legislation would enhance and modernize certified public accountant (CPA) licensure requirements by establishing an additional pathway for CPA licensure and enhance CPA mobility to ensure CPAs licensed in other states are able to practice in Pennsylvania.

Under current law, candidates seeking CPA licensure must obtain a master’s degree or 150 credits, gain one year of professional experience, and pass the Uniform CPA Exam.  This legislation would establish an additional pathway for candidates with a bachelor’s degree who gain two years of professional experience and pass the Uniform CPA Exam. The legislation also modernizes rules related to interstate mobility of CPAs.

PA Chamber of Business and Industry supported this legislation, which now goes to the House Professional Licensure Committee.

Prevailing Wage Expansion (H.B. 846; Dawkins)

The House of Representatives voted 126-76 to pass House Bill 846 last Tuesday.

This legislation would expand the PA Prevailing Wage Act to include custom fabrication and prohibit the practice of split-rates.

The PA Prevailing Wage Act requires pre-determined wages to be paid on public construction projects and can substantially increase project costs. This legislation would expand this requirement to custom fabrication work separate from the jobsite, which will raise costs on taxpayers and potentially divert projects to out-of-state competitors. The legislation also prohibits the practice of paying “split rates,” which companies utilize to promote efficiency on a worksite. Both changes will increase costs and create administrative challenges for employers.

PA Chamber of Business and Industry opposed this legislation (CLICK HERE for our memo), which now goes to the Senate.

Minimum Wage (H.B. 1549; Dawkins)

The House of Representatives voted along party lines (102-101) to pass House Bill 1549 last Wednesday.

This legislation would increase the minimum wage incrementally based on county: Philadelphia would increase to $15 in 2026; Allegheny (as well as counties of the 2nd Class A, 3rd class, and several other smaller counties) would increase to $15 by 2028; and all other counties would gradually increase to $12 by 2028. In all counties, the rate would increase every year thereafter based on inflation, and the tipped rate would be set at 60 percent of the regular rate.

Employers in Pennsylvania, particularly small businesses, nonprofits, and childcare centers have expressed concerns with their ability to simply absorb significant increases in labor costs, without being forced to reduce services and/or their workforce. Additionally, restaurants, many of which would be forced to increase labor costs by as much as 320 percent under this proposal, have warned that significant increases to the tipped rate could similarly force restaurants to reduce hours or staff.

PA Chamber of Business and Industry opposed this legislation (CLICK HERE for our memo), which now goes to the Senate.

Regulating Health Care Transactions (H.B. 1460; Borowski)

The House of Representatives voted 121-82 to pass House Bill 1460 last Tuesday.

This legislation would empower the Pennsylvania Attorney General to unilaterally determine the fate of health care transactions in Pennsylvania and decide whether the transaction is “against the public interest.”

The legislation creates a new and bureaucratic review process while placing financial costs for the process back onto health care providers. This legislation is duplicative of existing state and federal processes and adds power to a single government agency to subjectively determine if health care transactions are “against the public interest.”

PA Chamber of Business and Industry opposed this legislation, which now goes to the Senate.

Electronic Payment of Wages (S.B. 581; Miller)

The Senate Labor & Industry Committee unanimously voted to pass Senate Bill 581 last Monday.

This legislation would permit employers to pay all wages by electronic means. Employers in Pennsylvania are currently allowed to pay employees through payroll or direct deposit. And while the vast majority of employees agree to and prefer electronic payment, an employer is required to accommodate a request for a paper check if even a single employee requests it. This creates administrative challenges and inefficiencies for employers who must maintain systems and processes to prepare for and accommodate these requests.

PA Chamber of Business and Industry supported this legislation (CLICK HERE for our memo), which now goes to the full Senate.

Penalties on Construction Companies (S.B. 72; Kane)

The Senate Labor & Industry Committee unanimously voted to pass Senate Bill 72 last Monday.

This legislation proposes several amendments to the Construction Workplace Misclassification Act, including severe penalties against employers for violations of this notoriously vague and complicated law, the threat of permanent debarment from commonwealth contracting opportunities, and new opportunities for trial lawyers to sue construction companies.

PA Chamber of Business and Industry opposed this legislation (CLICK HERE for our memo), which now goes to the full Senate.

Tax Refund Penalties (H.B. 1552; Siegel)

The House Finance Committee voted along party lines (14-12) to advance House Bill l552 last Wednesday.

This legislation would allow the Department of Revenue to access penalties for refund claims that are incomplete, for which an earlier claim was already filed, or for “frivolous” refund claims.

This legislation imposes steep penalties with vague standards for failure to comply on taxpayers and practitioners. This could have a cooling effect and result in many legitimate claims to go unfiled for fear of penalties, allowing the Commonwealth to retain more tax revenue than it is legally entitled.

PA Chamber of Business and Industry opposed this legislation (CLICK HERE for our memo), which now goes to the full House.

Increased Sales Tax Refund Requirements (H.B. 1551; Siegel)

The House Finance Committee also voted along party lines (14-12) to advance House Bill l551 last Wednesday.

This legislation would amend the Tax Code to create additional requirements for taxpayers who file a sales tax refund claim, including full vetting with complete evidence of every transaction prior to filing a claim.

This legislation could have a substantial impact on taxpayers and practitioners by requiring full vetting of every transaction as opposed to sample-based evidence. This legislation could result in a cooling effect where taxpayers may not file claims for which they are legally entitled, allowing the Commonwealth to retain more tax revenue than it is legally entitled.

PA Chamber of Business and Industry also opposed this legislation (CLICK HERE for our memo), which now goes to the full House.

Government Overreach, Price Fixing for Financial Institutions (H.B. 1553; Sanchez)

The House Commerce Committee voted along party lines (14-12) to advance House Bill l553 last Wednesday.

This legislation mandates a statutory cap on overdraft and nonsufficient fund (NSF) fees imposed by banks and credit unions.

This legislation would create new, unprecedented price-fixing regulations, which would create government overreach into the business operations of financial institutions. Overdraft programs are optional for customers and heavily regulated under existing federal law, which requires consumer opt-in and transparent disclosure of terms.

The current system allows consumers to make informed choices, and competitive forces within the industry incentivize fair pricing and clear communication. House Bill 1553 undermines this healthy market dynamic by inserting state government control into areas best left to market forces.

PA Chamber of Business and Industry opposed this legislation (CLICK HERE for our memo), which now goes to the full House.

Wireless Equipment Sales Tax Exemption (H.B. 1503; Prokopiak)

The House Finance Committee unanimously voted to advance House Bill l503 last Wednesday.

This legislation would amend the tax code to clarify the sales tax exemption for wireless network equipment. The bill modernizes the tax code to account for technological advancements and wireless internet data services.

It would also clarify that the sales tax exemption applies to all equipment, parts, and supplies used to build and maintain wireless networks like it already does for landlines.

PA Chamber of Business and Industry supported this legislation (CLICK HERE for our memo), which now goes to the full House.

Right-to-Repair (H.B. 1512; Mullins)

The House Commerce Committee voted 15-11 to advance House Bill 1512 last Wednesday.

This legislation would require original equipment manufacturers of electronics and appliances that contain embedded software, such as cellphones, washers, dryers, refrigerators, televisions, and laptops, to make available to consumers and independent repair shops the information and parts needed to repair those devices and fully disclose any contract provision preventing third party repair.

Right-to-Repair legislation undermines intellectual property rights, compromises product safety, and can lead to unauthorized modifications that jeopardize both consumer safety and the integrity of the original manufacturer’s standards.

PA Chamber of Business and Industry opposed this legislation (CLICK HERE for our memo), which now goes to the full House.

Regulating Recurring Subscriptions (H.B. 1299; Ciresi and H.B. 129; Borowski)

The House Communications and Technology Committee unanimously voted to advance two bills regulating recurring subscriptions last Tuesday.

House Bill 1299 would amend the Unfair Trade Practices and Consumer Protection Act (UTPCPA) to require businesses to notify consumers about automatic renewal subscriptions and to provide an online cancellation option.

Similarly, House Bill 129 would amend the UTPCPA to require businesses to obtain explicit consumer consent before enrolling customers in automatic renewals, along with detailed mandates on how promotional offers must be presented.

Both bills impose detailed and prescriptive rules on how subscriptions must be offered, managed, and canceled. These requirements could raise operational costs, discourage the use of subscription-based services, and make it more difficult for businesses to provide consumers with easy and convenient subscription options. The bills also include new private rights of action, increasing litigation concerns for businesses.

PA Chamber of Business and Industry opposed these bills (CLICK HERE for our memo), which now go to the full House.