It was a busy week at the Capitol, with both the House and Senate in town for legislative session. Lawmakers advanced a wide range of proposals with significant implications for Pennsylvania employers — from major changes to employment law and benefits programs to sweeping new mandates and regulatory expansions.  Here is a recap of last week’s legislative action most relevant to employers:

Legalizing Recreational Marijuana (H.B. 1200; Krajewski)

The House of Representatives voted along party lines (102-101) to pass House Bill 1200 last Tuesday (5.6.25)

This legislation would legalize, tax, and regulate the sale of marijuana for recreational purposes in Pennsylvania and allow it to be sold in state stores, where liquor and wine have traditionally been sold in the Commonwealth.

The PA Chamber has been urging lawmakers to carefully consider the impact on the business community and workforce. Pennsylvania is already experiencing the consequences of lawmakers failing to fully consider the employer perspective as it relates to marijuana policy. Years following the passage of Act 16, which legalized marijuana for medical purposes, employers continue to report significant confusion with the law and a lack of clarity that is complicating their ability to maintain a safe work environment, particularly in safety-sensitive industries.

The PA Chamber has expressed strong concerns with lawmakers considering the legalization of recreational marijuana, and expanding marijuana use in Pennsylvania, at least until workplace safety concerns with the medical program are addressed.

We urged the House to hold off considering this legislation (CLICK HERE for our memo), which now goes to the Senate.

On May 13th the Law & Justice Committee of the Senate rejected the bill that was advanced by the House.  Learn more.

Weaponizing Equal Pay Law (H.B. 630; Shusterman)

The House of Representatives also voted along party lines (102-101) to pass House Bill 630 last Monday.

This legislation would fundamentally change Pennsylvania’s Equal Pay law, adding new vague standards, gutting employer protections in the law, and making it nearly impossible for an employer to defend against a legal action brought under this Act. The bill would also restrict the type of questions employers may ask job applicants related to wages, significantly increase penalties, create new causes of action, and allow for uncapped punitive damages.

Federal and state laws require employers to pay women and men equally for equal work. The law has also always recognized pay disparities often do exist for reasons that have nothing to do with discrimination and therefore provides several exceptions.

H.B. 630 also imposes a new ambiguous “comparable work” standard and guts these exceptions, putting the burden on employers to demonstrate that discrimination was not a factor and setting an impossibly high bar to do so. This legislation will expose honest, law-abiding employers to lawsuits and severe penalties, which may particularly harm small businesses.

The PA Chmaber opposed this legislation (CLICK HERE for their memo), which now goes to the Senate.

Redefining Unemployment Compensation Law (H.B. 265; Powell)

The House of Representatives voted 105-98 to pass House Bill 265 last Tuesday.

This legislation would grant UC eligibility to various categories of public school employees during the summer months.

UC is intended to provide temporary wage benefits to workers who have lost their job through no fault of their own as they actively seek new employment. Expanding the law to include new categories of employees who are not unemployed would fundamentally change the program and dramatically increase costs when Pennsylvania employers already pay some of the highest UC taxes in the country.

The PA Chamber opposed this legislation (CLICK HERE for their memo), which now goes to the Senate.

Prohibiting Paper Statement Fees (H.B. 81;Venkat)

The House of Representatives voted 123-81 to pass House Bill 81 last Tuesday.

This legislation would amend existing Unfair Trade Practices and Consumer Protection law to prohibit businesses from charging a fee for paper account statements, creating a new private right of action.

The proposal has broad-reaching implications for the business community, including opening the door to the government getting involved in price-setting and ongoing enhanced fraud concerns when financial statements go through the mail. If enacted, HB 81 would designate charging paper account statement fees as an unfair trade practice under Pennsylvania law and creates a new private right of action. Additionally, there is a need for additional exemptions to be included in the bill for already regulated industries.

There is a strong likelihood that if enacted, H.B. 81 would face a constitutional challenge due to previous case law in other jurisdictions which established that prohibiting fees for paper billing statements violates the First Amendment rights of businesses.

The PA Chamber opposed this legislation (CLICK HERE for their memo), which now goes to the Senate.

Healthcare Facility Regulations (H.B. 926; Krueger)

The House of Representatives voted 124-79 to pass House Bill 926 last Tuesday.

This legislation proposes a comprehensive set of regulations on healthcare facilities, including policies related to safety standards, training, reporting, establishing internal committees, risk assessment, and other areas.

As well-intended as it may be, legislation of this significance should at least be carefully developed in consultation with the employers who will be required to implement and operate under it. This bill has also prompted concerns that it is duplicative with existing federal standards, creating compliance traps, and may encourage unfair or unfounded lawsuits against healthcare facilities.

The PA Chamber opposed this legislation (CLICK HERE for their memo), which now goes to the Senate.

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

The House Labor & Industry Committee voted along party lines (14-12) to advance House Bill 846 last Tuesday.

This legislation would expand the PA Prevailing Wage Act to include custom fabrication and prohibit the practice of paying “split-rates,” which companies utilize to promote efficiency on a worksite.

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 job site – which will raise costs on taxpayers and potentially divert projects to out-of-state competitors – and also prohibit split rates. Both changes will increase costs and create administrative challenges for employers.

The PA Chamber opposed this legislation (CLICK HERE for their memo), which now goes to the full House.

Data Breach Lawsuits (H.B. 997; Solomon)

The House Commerce Committee voted along party lines (14-12) to advance House Bill 997 last Tuesday.

This legislation would amend the Breach of Personal Information Notification Act to require companies to take additional steps to secure personal data from hacking and creates new private rights of action against companies who are hacked.

The bill includes three problematic provisions that would significantly expand legal liability for companies doing business in Pennsylvania. First, the bill establishes a private right of action to sue companies for data breaches. Currently, the Attorney General has exclusive jurisdiction under the act. Second, it contains statutory damages, meaning people could recover more than their actual damages. Lastly, it prohibits the use of arbitration agreements. Arbitration is an important tool in resolving disputes as it has been found to be fair to both parties, resolves disputes quicker, and is significantly less costly than a trial.

The PA Chamber opposed this legislation (CLICK HERE for their memo), which now goes to the full House.

Gift Card Scam Posting Requirements (H.B. 1067; Ciresi)

The House Commerce Committee also voted along party lines (14-12) to advance House Bill 1067 last Tuesday.

This legislation would amend the Unfair Trade Practices and Consumer Protection Law (UTPCPL) to require retailers that sell gift cards to post clear signage warning consumers about gift card scams and what to do if they suspect they might be a victim and to require training for employees.

While the PA Chamber would welcome relevant agencies to voluntarily develop and share educational materials and training opportunities related to gift card scams, we do not support a mandate that comes with punitive fines for failing to post signage, and which could also expand liability if a customer is victimized by a scammer. The UTPCPL allows for private rights of action and for treble damages.

Committee lawmakers unanimously approved an amendment (A00536) offered by Rep. Scott Conklin (D-Centre) which removed language from the bill that would have directed the Attorney General’s office to develop a training program for identifying warning signs of gift card fraud.

The PA Chamber opposed this legislation (CLICK HERE for their memo), which now goes to the full House.

Keystone Saves Retirement Accounts (H.B. 1263; Mullins)

The House Commerce Committee also voted along party lines (14-12) to advance House Bill 1263 last Tuesday.

This legislation would establish the Keystone Saves Program Retirement Fund, a state-run, auto-IRA program. The program would require businesses with five or more full-time and/or part-time employees who do not currently offer their own retirement savings plan to participate and administer the government-run, auto-IRA retirement program for their employees.

Employers will be required to prove whether they do or do not provide retirement savings programs, register all new employees, and provide employees’ personal information like social security numbers to the State. Businesses must manage varying contribution percentages; workers’ anniversaries; manage tax filings and could potentially be charged additional fees from payroll companies to process the various deductions.

Committee lawmakers approved an amendment (A00519) offered by Rep. Christopher Rabb (D-Philadelphia) ensuring that collected information is only used for the enactment of the program.

The PA Chamber opposed this legislation, which now goes to the full House.

Rural Public Transit Study (H.R. 68; Struzzi)

The House Transportation Committee voted unanimously (26-0) to advance House Resolution 68 last Monday.

House Resolution 68 would direct the Legislative Budget and Finance Committee (LBFC) to conduct a comprehensive study on public transit in Pennsylvania’s rural communities.

The PA Chamber believes that public transit, both the services it provides and the infrastructure that supports those services, is key for employers and their workforce, thriving neighborhoods, a healthy environment, and a robust interconnected community.

We believe the goals of this LBFC study will provide the vital information needed for policymakers to make important decisions about how to expand and modernize mass transit options for underserved areas, including how to best direct resources, prioritize projects, support economic growth, and address workforce challenges in rural communities.

The PA Chamber supported this resolution (CLICK HERE for their memo), which now goes to the full House.

Pathways to Employment for Incarcerated People (H.B. 1042; Nelson)

The House Judiciary Committee voted along party lines (14-12) to advance House Bill 1042 last Monday.

This legislation would allow people who complete educational and vocational programs while incarcerated to have accelerated parole eligibility consideration. Additionally, this legislation would assist individuals in obtaining licensing post-release by counting educational credits against the waiting time for license eligibility.

Considering the Commonwealth’s ongoing workforce crisis, the PA Chamber understands the need to expand the pool of available workers and close the skills gap. By granting incarcerated individuals an opportunity for early release by participating in educational and vocational training, we ensure they are equipped with the skills necessary to gain meaningful employment upon reintegration into society and help businesses fill open positions.

The PA Chamber supported this legislation (CLICK HERE for their memo), which now goes to the full House.

PASS Scholarships (S.B. 10; J. Ward)

The Senate Education Committee voted 8-3 to advance Senate Bill 10 last Tuesday.

This legislation would establish the Pennsylvania Award for Student Success (PASS) scholarship program. Under this legislation, parents with children in grades K-12 who reside within the attendance area of a district school in the bottom 15 percent of performance metrics based on state testing would be eligible to receive a scholarship. PASS scholarships can only be used for education expenses associated with the new education instruction.

S.B. 10 empowers families to choose the best educational path for their children, regardless of zip code or income. Expanding school choice strengthens Pennsylvania’s future workforce by ensuring every student has access to a quality education that meets their unique needs.

The PA Chamber supported this legislation (CLICK HERE for their memo), which now goes to the full Senate.

 House Approves Working Pennsylvanians Tax Credit with Broad Bipartisan Support

A proposal to create a new refundable tax credit for lower-income working Pennsylvanians passed the state House of Representatives last Tuesday in a 185–15 vote, with strong bipartisan support.

House Bill 820, sponsored by Rep. Christina Sappey (D-Chester), would establish the Working Pennsylvanians Tax Credit — a state-level earned income tax credit (EITC) equal to 30 percent of the federal EITC. The credit would be refundable, meaning taxpayers would receive the full value even if it exceeds their state tax liability.

This bill is aimed at helping households that are working but still struggling to meet basic needs and could also encourage employment. According to the bill’s co-sponsorship memorandum, if the program had been in place last year, the average qualifying household would have received about $650.

The legislation is part of a broader conversation about how to support low- and moderate-income residents and will likely be part of negotiations ahead of the 2025–26 state budget. Supporters also point to potential long-term economic benefits, citing analysis suggesting the credit could stimulate growth and reduce demand for public assistance.

The bill now awaits consideration in the Senate.