BILL REQ. #:  Z-0210.1 

Read first time 01/28/13.   Referred to Committee on Commerce & Labor.

     AN ACT Relating to changing the unemployment insurance shared work program by adopting short-time compensation provisions in the federal middle class tax relief and job creation act of 2012; amending RCW 50.60.030, 50.60.090, and 50.60.110; reenacting and amending RCW 50.60.020; creating a new section; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 50.60.020 and 2009 c 3 s 7 are each reenacted and amended to read as follows:
     Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Affected employee" means a specified employee, hired on a permanent basis, to which an approved shared work compensation plan applies.
     (2) "Employers' association" means an association which is a party to a collective bargaining agreement under which there is a shared work compensation plan.
     (3) (("Fringe benefits" include health insurance, retirement benefits under benefit pension plans as defined in section 3(35) of the employee retirement income security act of 1974, paid vacation and holidays, and sick leave, which are incidents of employment in addition to cash remuneration.
     (4))) "Shared work benefits" means the benefits payable to an affected employee under an approved shared work compensation plan as distinguished from the benefits otherwise payable under this title.
     (((5))) (4) "Shared work compensation plan" means a plan of an employer, or of an employers' association, under which there is a reduction in the number of hours worked by employees rather than ((temporary)) layoffs.
     (((6))) (5) "Shared work employer" means an employer, ((one or more of whose)) who has at least two employees ((are)), and at least one employee is covered by a shared work compensation plan.
     (((7))) (6) "Unemployment compensation" means the benefits payable under this title other than shared work benefits and includes any amounts payable pursuant to an agreement under federal law providing for compensation, assistance, or allowances with respect to unemployment.
     (((8))) (7) "Usual weekly hours of work" means the ((normal)) regular number of hours of work ((for the affected employee when he or she is working on a full-time basis)) before the hours were reduced, not to exceed forty hours and not including overtime.

Sec. 2   RCW 50.60.030 and 2009 c 3 s 8 are each amended to read as follows:
     An employer or employers' association wishing to participate in a shared work compensation program shall submit a written and signed shared work compensation plan to the commissioner for approval. The commissioner shall approve a shared work compensation plan only if the following criteria are met:
     (1) The plan identifies the affected employees to which it applies;
     (2) Each affected employee is identified by name, social security number, and by any other information required by the commissioner;
     (3) The usual weekly hours of work for each affected employee are reduced by not less than ten percent and not more than fifty percent;
     (4) ((Fringe)) The employer certifies health benefits will continue to be provided ((on)) under the same ((basis as before the reduction in work hours. In no event shall the level of health benefits be reduced due to a reduction in hours)) terms and conditions as when the affected employee worked his or her usual weekly hours of work. Affected employees must be allowed to maintain coverage under the same terms and conditions as employees not participating in the shared work compensation plan. However, a change in health benefits applicable to employees who are not participating in the shared work compensation plan may also apply to affected employees;
     (5) The employer certifies retirement benefits under a defined benefit plan or contributions under a defined contribution plan will continue to be provided under the same terms and conditions as when the affected employee worked his or her usual weekly hours of work. Affected employees must be allowed to maintain coverage in the retirement plan under the same terms and conditions as employees not participating in the shared work compensation plan. However, a reduction in benefits under a defined benefit plan or a reduction in contributions under a defined contribution plan applicable to employees who are not participating in the shared work compensation plan may also apply to affected employees;
     (6) The employer certifies paid vacation, holidays, and sick leave continue to be provided under the same terms and conditions as when the affected employee worked his or her usual weekly hours of work. Affected employees must be allowed to maintain these benefits under the same terms and conditions as employees not participating in the shared work compensation plan. However, a reduction in these benefits applicable to employees who are not participating in the shared work compensation plan may also apply to affected employees;
     (((5))) (7) The plan certifies that the aggregate reduction in work hours for each affected employee is in lieu of ((temporary)) layoffs which would have resulted in an equivalent reduction in work hours;
     (((6))) (8) The plan is approved in writing by the collective bargaining agent for each collective bargaining agreement covering any affected employee;
     (((7))) (9) The plan will not subsidize seasonal employers during the off season ((nor subsidize employers who have traditionally used part-time employees; and
     (8)));
     (10) The employer agrees to furnish reports necessary for the proper administration of the plan and to permit access by the commissioner to all records necessary to verify the plan before approval and after approval to evaluate the application of the plan;
     (11) The plan includes an estimate of the number of layoffs that would have occurred absent the ability to participate in shared work;
     (12) The shared work compensation plan includes a plan to give advance notice, when feasible, to an employee whose usual weekly hours of work will be reduced. If not feasible, the shared work compensation plan must explain why it is not feasible; and
     (13) The employer must attest that participation is consistent with employer obligations under federal and state law.
     In addition to subsections (1) through (((8))) (13) of this section, the commissioner shall take into account any other factors which may be pertinent.

Sec. 3   RCW 50.60.090 and 2009 c 3 s 11 are each amended to read as follows:
     An individual is eligible to receive shared work benefits with respect to any week only if, in addition to meeting the conditions of eligibility for other benefits under this title, the commissioner finds that:
     (1) The individual was employed during that week as an affected employee under an approved shared work compensation plan which was in effect for that week;
     (2) The ((individual)) affected employee was able to work and was available for ((additional hours of work and for full-time work)) his or her usual weekly hours of work with the shared work employer; and
     (3) Notwithstanding any other provision of this chapter, an individual is deemed to have been unemployed in any week for which remuneration is payable to him or her as an affected employee for less than his or her normal weekly hours of work as specified under the approved shared work compensation plan in effect for that week.

Sec. 4   RCW 50.60.110 and 1983 c 207 s 11 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, shared work benefits shall be charged to employers' experience rating accounts in the same manner as other benefits under this title are charged. Employers liable for payments in lieu of contributions shall have shared work benefits attributed to their accounts in the same manner as other benefits under this title are attributed.
     (2) For weeks of benefits paid between July 1, 2012, and June 28, 2015, shared work benefits are not charged to experience rating accounts of employers or to employers who are liable for payments in lieu of contributions. The department shall remove charges for weeks of shared work benefits paid between July 1, 2012, and the week prior to the effective date of this section.

NEW SECTION.  Sec. 5   If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state or the eligibility of employers in this state for federal unemployment tax credits, the conflicting part of this act is inoperative solely to the extent of the conflict, and the finding or determination does not affect the operation of the remainder of this act. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state or the granting of federal unemployment tax credits to employers in this state.

NEW SECTION.  Sec. 6   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 7   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.