HOUSE BILL REPORT

SSB 5830

BYSenate Committee on Economic Development & Labor (originally sponsored by Senator Lee)

Extending coverage of unemployment insurance to agricultural employees over eighteen years of age.

House Committe on Commerce & Labor

Majority Report:  Do pass with amendments.  (6)

      Signed by Representatives Vekich, Chair; Cole, Vice Chair; Jones, R. King, Leonard and Prentice.

Minority Report:  Do not pass. (4)

      Signed by Patrick, Ranking Republican Member; Smith, Walker and Wolfe.

House Staff:Chris Cordes (786-7117)

AS REPORTED BY COMMITTEE ON COMMERCE & LABOR MARCH 29, 1989

BACKGROUND:

Workers in agricultural employment are covered for unemployment compensation benefits if the employer:  (1) has paid $20,000 or more in wages for agricultural labor during any quarter in the current or preceding calendar year; or (2)  has employed 10 or more agricultural workers for some part of a day in each of 20 different calendar weeks in the current or preceding calendar year.  If an agricultural worker is employed by an employer who does not meet these criteria, then the hours worked for that employer are not "covered" hours.

SUMMARY:

BILL AS AMENDED:  The exemption from unemployment coverage for agricultural employees is repealed by eliminating the following provisions of unemployment insurance law beginning January 1, 1990:  (1)  the provision excluding agricultural employment from covered employment and defining "agricultural labor"; and (2) the provision including within "covered employment" the services performed for an agricultural operator who either pays $20,000 or more for agricultural labor in a calendar quarter or who employs 10 or more agricultural workers during the specified 20 week period.

AMENDED BILL COMPARED TO SUBSTITUTE:  The amended bill repeals the exemption from unemployment coverage for agricultural employees and deletes the provisions that would have: (1) repealed the exemption except for persons under 18 or persons working less than 13 weeks annually in agriculture; allowed newly covered employers to pay contributions at a 2 percent tax rate; for benefit eligibility, required all employees to work at least 227 hours in a quarter of the base year other than the quarter with the highest wages; changed the weekly benefit formula from one twenty-fifth of the wages in the two highest quarters to one one-hundredth of the total wages; and added a new definition of suitable work for agricultural employees.

Fiscal Note:      Requested March 30, 1989.

House Committee ‑ Testified For:    Frank DeLong, Washington State Horticultural Association; Ronald Gamache, Washington State Farm Bureau; Allen Scholtz; Dan Coyne, Washington State Dairy Federation; and Clif Finch, Association of Washington Business.

House Committee - Testified Against:      Graeme Sackrison, Employment Security Department; Tomas Villanueva, United Farm Workers of Washington; and Lupe Gamboa, Evergreen Legal Services.

House Committee - Testimony For:    The inclusion of agricultural employees in unemployment insurance coverage is a major policy change that will impact the entire unemployment insurance system.  This bill extends coverage while addressing the major impacts that will result from coverage and providing some solutions to the problems in the unemployment compensation system.

House Committee - Testimony Against:      This bill is not an appropriate vehicle for solving the perceived problems with the unemployment insurance system.  In going beyond the issue of extending coverage for agricultural employees, the bill creates a new group of "second class" employees, creates administrative problems, and potentially reduces benefits for all unemployed persons.