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PA Chamber CEO Testifies at Senate Hearing on Workforce Crisis

Last Wednesday, the Senate Community, Economic and Recreational Development Committee held a hearing covering the economic impact of the workforce shortage.  PA Chamber President Gene Barr joined the committee to share the voice of countless businesses across the Commonwealth that have been affected by this challenge.  A copy of Gene’s submitted testimony is available here.

While few members challenged the idea that employers are struggling to find reliable workers to fill roles in today’s environment, testimony from witnesses in several industries and across multiple trade associations reflected the truth that—especially with the supplemental federal aid amounting to $300 per week influencing the hiring market— employers are facing a true crisis in the labor force.

Also discussed at the hearing were the generous benefits, wages, and signing bonuses offered to potential employees to entice them to rejoin the labor pool.  As Pennsylvania’s unemployment rate hovers at around one percentage point higher than the national average, we welcome this hearing to raise awareness of the problems employers are facing on a daily basis and help advance public policy solutions.

Department of Labor and Industry Issues UC Fraud Guidance

Responding to skyrocketing claims of Unemployment Insurance Fraud, the PA Department of Labor and Industry this week provided employers with helpful tips for reporting fraudulent claims.  When responding to a Notice of Claim Filed that you believe to be fraudulent, keep the following tips in mind:

  • L&I does not need any of the person’s actual employment information for identity theft situations. The fields on the response form do not need to be completed unless the system requires it (e.g., start date, end date, termination date).
  • The “Reason for Separation” field is always required. For identity theft claims, you should enter the reason as “Still working full-time.”
  • For employers using the new benefits system, a step-by-step guide is available here.
  • For employers not yet able to log into the new system but enrolled in SIDES, a guide is available here.
  • Employers who have hired a Third-Party Administrator (TPA) for unemployment matters can disregard any Notices of Application as the administrator should handle this matter.

The Department also wants to remind employers:

  • Appealing the financial determination is not the appropriate way to report a fraudulent claim. As the employer, you should respond to the claim notices but should not file a fraud report.
  • Ultimately, you will not be charged for benefits paid to fraudulent, identity theft-related claims. Once benefits are denied, your account will be credited.

The Department also noted they are implementing additional verification processes for the UC claims process.  Earlier this year, L&I announced that it was expanding a partnership with ID.me, an identity verification vendor, to dissuade fraudsters targeting the UC system.

Highlighting the Cost of the Workforce Shortage on Business

Yesterday, PA Chamber President and CEO Gene Barr joined CBS21’s Ryan Eldredge on Face the State to discuss the most significant problems for business as Pennsylvania emerges from the pandemic economy.  Potentially the most critical issue: The current workforce crisis. Employers, already struggling to recover after pandemic-era restrictions, are increasingly facing an impediments to fully reopening— including $300 per week in federal pandemic assistance funds on top of standard unemployment compensation checks. With this money, the federal government is actively disincentivizing individuals from returning to work. Meanwhile, companies without workers are left to cancel orders, increase lead times, lose contracts and cut hours and services to stay afloat.

To raise awareness about the destructive effects of this policy and encourage a greater focus on our workforce needs, the PA Chamber has taken to the airwaves with examples from across the state of businesses struggling to meet post-pandemic demand.

Now we need to hear from you.  Are you having an issue finding employees?  Have you been forced to raise starting wages? Did you have to raise prices or shorten hours due to a lack of workers? Please take a minute to share your story with us!  Email advocacy@pachamber.org, and we’ll set up a time to talk!

State & Federal Political Recap

Gov. Wolf Holds News Conference in Support of Minimum Wage Increase

On Friday, Governor Tom Wolf joined Democratic members of the House and Senate, including House Democratic Leader Joanna McClinton, in Philadelphia to again call for a raise in Pennsylvania’s minimum wage.  Without regard for the economic consequences of this proposal, Gov. Wolf has repeatedly called for the state’s minimum wage to be raised to $15 per hour after an initial increase to $12.  The governor and advocates have also proposed eliminating the tipped credit system used primarily by the restaurant industry, which would force these small businesses to increase labor costs by 425 percent as they continue struggling to recover from the pandemic.

Carla Sands Announces Run for Pennsylvania Senate Seat

President Trump’s former ambassador to Denmark announced last week that she was joining the crowded primary field vying for the state’s Republican nomination to the U.S. Senate.  Carla Sands is a Pennsylvania native and CEO of Vintage Capital Group.  The primary election will be held in May 2022.

New Law Gives Telecom Companies Competitive Advantage in PA

According to reporting in the Pennsylvania Capital-Star, legislation that passed in late June could be a boon for the competitiveness of Pennsylvania’s telecom market.  Municipal permitting for 5G infrastructure — formerly a process that could play out over many months — is now limited by statute to 60 or 90 days before being granted automatic approval.

Commerce Department adds 34 Chinese Companies to ‘Entity List’ for Xinjiang, Trade, Military Abuses

On Friday, the Biden Administration added 34 additional companies, 14 headquartered in the People’s Republic of China, to the U.S. Bureau of Industry and Security’s ‘Entity List’ for activities “contrary to the foreign policy and national security interests of the United States.” Among the reasons for the listings were support for actions that aided the PRC government’s oppression of minorities in the Xinjiang Uyghur Autonomous Region, trading with Iran in violation of existing U.S. regulations, and supporting China’s military modernization programs.  Maintained by the U.S. Department of Commerce, the list restricts trade practices on goods listed on the U.S. Government’s Export Administration Regulations.