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.
