AN ACT
Relating to unemployment compensation for persons with public employment
contracts; amending RCW 50.04.320, 50.44.050, and 50.44.053; creating new
sections; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
50.04.320 and 1986 c 21 s 1 are each amended to read as follows:
(1)
For the purpose of payment of contributions, "wages" means the
remuneration paid by one employer during any calendar year to an individual in
its employment under this title or the unemployment compensation law of any
other state in the amount specified in RCW 50.24.010. If an employer
(hereinafter referred to as a successor employer) during any calendar year
acquires substantially all the operating assets of another employer
(hereinafter referred to as a predecessor employer) or assets used in a separate
unit of a trade or business of a predecessor employer, and immediately after
the acquisition employs in the individual's trade or business an individual who
immediately before the acquisition was employed in the trade or business of the
predecessor employer, then, for the purposes of determining the amount of
remuneration paid by the successor employer to the individual during the
calendar year which is subject to contributions, any remuneration paid to the
individual by the predecessor employer during that calendar year and before the
acquisition shall be considered as having been paid by the successor employer.
(2)
For the purpose of payment of benefits, "wages" means the
remuneration paid by one or more employers to an individual for employment
under this title during his base year: PROVIDED, That at the request of a
claimant, wages may be calculated on the basis of remuneration payable. The
department shall notify each claimant that wages are calculated on the basis of
remuneration paid, but at the claimant's request a redetermination may be
performed and based on remuneration payable.
(3)
For the purpose of payment of benefits and payment of contributions, the term
"wages" includes tips which are received after January 1, 1987, while
performing services which constitute employment, and which are reported to the
employer for federal income tax purposes.
(4)(a)
"Remuneration" means all compensation paid for personal services
including commissions and bonuses and the cash value of all compensation paid in
any medium other than cash. The reasonable cash value of compensation paid in
any medium other than cash and the reasonable value of gratuities shall be
estimated and determined in accordance with rules prescribed by the
commissioner. Remuneration does not include payments to members of a reserve
component of the armed forces of the United States, including the organized
militia of the state of Washington, for the performance of duty for periods not
exceeding seventy-two hours at a time.
(b)
Previously accrued compensation, other than severance pay or payments received
pursuant to plant closure agreements, when assigned to a specific period of
time by virtue of a collective bargaining agreement, individual employment
contract, customary trade practice, or request of the individual compensated,
shall be considered remuneration for the period to which it is assigned.
Assignment clearly occurs when the compensation serves to make the individual
eligible for all regular fringe benefits for the period to which the
compensation is assigned.
(c)
Settlements or other proceeds received by an individual as a result of a
negotiated settlement for termination of an employment contract with a public
agency prior to its expiration date shall be considered remuneration. The
proceeds shall be deemed assigned in the same intervals and in the same amount
for each interval as compensation was allocated under the contract.
(d)
Except as provided in (c) of this subsection, the provisions of this ((section))
subsection (4) pertaining to the assignment of previously accrued
compensation shall not apply to individuals subject to RCW 50.44.050.
Sec.
2. RCW
50.44.050 and 1990 c 33 s 587 are each amended to read as follows:
Except
as otherwise provided in subsections (1) through (4) of this section, benefits
based on services in employment covered by or pursuant to this chapter shall be
payable on the same terms and subject to the same conditions as compensation
payable on the basis of other service subject to this title.
(1)
Benefits based on service in an instructional, research or principal
administrative capacity for an educational institution shall not be paid to an
individual for any week of unemployment which commences during the period
between two successive academic years or between two successive academic
terms within an academic year (or, when an agreement provides instead
for a similar period between two regular but not successive terms within an
academic year, during such period) if such individual performs such
services in the first of such academic years or terms and if there is a
contract or reasonable assurance that such individual will perform services in
any such capacity for any educational institution in the second of such
academic years or terms. Any employee of a common school district who is
presumed to be reemployed pursuant to RCW 28A.405.210 shall be deemed to have a
contract for the ensuing term.
(2)
Benefits shall not be paid based on services in any other capacity for an
educational institution for any week of unemployment which commences during the
period between two successive academic years or between two successive
academic terms within an academic year, if such individual performs
such services in the first of such academic years or terms and there is a
reasonable assurance that such individual will perform such services in the
second of such academic years or terms: PROVIDED, That if benefits are denied
to any individual under this subsection and that individual was not offered an
opportunity to perform such services for the educational institution for the
second of such academic years or terms, the individual is entitled to a retroactive
payment of benefits for each week for which the individual filed a timely claim
for benefits and for which benefits were denied solely by reason of this
subsection.
(3)
Benefits shall not be paid based on any services described in subsections (1) and
(2) of this section for any week of unemployment which commences during an
established and customary vacation period or holiday recess if such individual
performs such services in the period immediately before such vacation period or
holiday recess, and there is a reasonable assurance that such individual will
perform such services in the period immediately following such vacation period
or holiday recess.
(4)
Benefits shall not be paid (as specified in subsections (1), (2), or (3) of
this section) based on any services described in subsections (1) or (2) of this
section to any individual who performed such services in an educational
institution while in the employ of an educational service district which is
established pursuant to chapter 28A.310 RCW and exists to provide services to
local school districts.
(5)
As used in subsection (1) of this section, "academic year" means,
with respect to services described in subsection (1) of this section performed
by part-time faculty at community colleges and technical colleges: Fall,
winter, spring, and summer quarters or comparable semesters unless, based upon
objective criteria including enrollment and staffing, the quarter or comparable
semester is not in fact a part of the academic year for the particular institution.
Sec.
3. RCW
50.44.053 and 1985 ex.s. c 5 s 9 are each amended to read as follows:
The
term "reasonable assurance," as used in RCW 50.44.050, means a
written, verbal, or implied agreement that the employee will perform services
in the same capacity during the ensuing academic year or term as in the first
academic year or term. However, with respect to services described in RCW
50.44.050(1) performed by part-time faculty for community colleges and
technical colleges, the term "reasonable assurance" does not include
an agreement that is contingent on enrollment, funding, or program changes.
A person shall not be deemed to be performing services "in the same
capacity" unless those services are rendered under the same terms or
conditions of employment in the ensuing year as in the first academic year or
term.
NEW
SECTION. Sec. 4. The
legislature finds that, as a general rule with limited exceptions, employees of
educational institutions expect to be employed for no more than a nine or
ten-month school year with a break between school years for the traditional
summer vacation.
Because
of the decision in Evans v. Employment Security Department, 72 Wn. App.
862 (1994), the legislature finds it necessary to clarify legislative intent
with regard to unemployment compensation for employees of educational
institutions. The 1995 c . . . s 2 (section 2 of this act) amendment
to RCW 50.44.050 is intended to clarify that for the part-time faculty at
two-year institutions of higher education, summer quarter may be expected to be
a time of employment, unless otherwise shown. However, the 1995 c
. . . s 2 (section 2 of this act) amendment to RCW 50.44.050 is not
intended to change the general rules used by the employment security department
prior to the Evans decision regarding unemployment compensation for
other employees of educational institutions.
NEW
SECTION. Sec. 5. 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. 6. 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 hereby declared to be inoperative solely to
the extent of the conflict, and such finding or determination shall not affect
the operation of the remainder of this act. The rules under this act shall
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. 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 shall take effect immediately.
