Spotlight PA: State Won’t Pay 9,000 Employees After April 10 To Reduce State Spending

On April 3, Spotlight PA reported the Wolf Administration told nearly 9,000 employees-- more than 10 percent of the state’s workforce-- it will stop paying them on April 10 in order to reduce state spending in the face of the COVID-19 shutdown.

The affected employees have jobs that cannot be completed through teleworking.

7,457 of the jobs are in PennDOT-- about 5,700; the Department of Labor and Industry-- 908 and the Department of Revenue-- 849.

Employees have the option of using paid leave, unpaid leave or they can file for unemployment compensation.

These steps are in addition to laying off about 2,500 part-time and seasonal state employees on March 29 and freezing hiring and nonessential purchases on March 23.

The Department of Revenue reported a $294.6 reduction in state revenue during March which only covered a portion of the state shutdown.

The Independent Fiscal Office is scheduled to announce the first estimates of the COVID-19 shutdown on state revenues on April 8.

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Related Article:
State Employees Pension Fund To Allow COVID-19-Related Distributions From Deferred Compensation Plan Accounts
[Posted: April 3, 2020]